AuguStar Variable Insurance Products Fund Inc. has announced a series of reorganizations involving several of its portfolios. This strategic move is designed to consolidate smaller portfolios into larger ones, thereby improving operational efficiency and potentially lowering costs for investors.

The reorganizations are part of a broader trend within the investment management industry, where firms are increasingly looking to streamline their offerings. By combining portfolios, firms can reduce redundancies and enhance scale, which can lead to lower total annual operating expenses.

According to the filing dated October 19, 2026, the Board of Directors of AuguStar approved the reorganization of three specific portfolios. The affected portfolios include:

  • AVIP Fidelity Institutional AM® Equity Growth Portfolio, which will be reorganized into the AVIP BlackRock Advantage Large Cap Growth Portfolio.
  • AVIP AB Relative Value Portfolio, which will be reorganized into the AVIP S&P 500® Index Portfolio.
  • AVIP BlackRock Advantage Small Cap Growth Portfolio, which will be reorganized into the AVIP AB Small Cap Portfolio.

Each of these reorganizations is independent, meaning that investors will only be affected by the changes involving the portfolios in which they have contract value. Notably, none of the reorganizations will require shareholder approval, and investors are advised not to send proxies.

The filing indicates that the reorganizations are expected to be completed around the close of business on December 18, 2026. Each acquiring portfolio will assume the liabilities of its respective acquired portfolio and issue Class I shares to the acquired portfolio, which will then be distributed to shareholders.

These changes are anticipated to streamline operations and improve overall scale within the AuguStar fund family. The Board approved these reorganizations based on recommendations from Constellation Investments, Inc., the investment adviser for the portfolios. The goal is to enhance efficiency while maintaining or reducing the expense ratios for investors.

As part of these changes, Fidelity will replace AllianceBernstein, L.P. as the subadviser for the AVIP BlackRock Advantage Small Cap Growth Portfolio, effective at the same time as the reorganizations.

For investors, this means a potential for improved performance and lower costs as the portfolios consolidate. The filing underscores AuguStar's commitment to optimizing its fund offerings in a competitive investment landscape.

For any questions or concerns regarding the reorganizations, investors are encouraged to contact AuguStar directly.