Pittsburgh (July 21, 2003) -- Federated Investors announced Friday that it has struck a deal with Riggs National Corp. to buy nearly $470 million in mutual fund assets from eight of the company’s funds.
The funds will be folded into existing Federated funds. Terms of the deal were not disclosed.
The boards of directors of the Federated Funds and the Riggs Funds unanimously approved the planned transitions, which are now subject to the approval of Riggs Fund shareholders.
"Federated's long history of serving Riggs, coupled with our broad investment expertise, provides an ideal opportunity for Riggs to transition its mutual fund franchise into eight historically strong Federated funds," said J. Christopher Donahue, president and CEO of Federated Investors, Inc.
The Riggs asset breakdown as of July 16, is as follows: $47.5 million in two domestic equity funds, $127.9 million in four fixed-income funds and $294.2 million in two money market funds.
Prior to this announcement, Federated had acquired approximately $3.9 billion in mutual fund assets since 2000. These transactions include $346 million in primarily equity fund assets from Investment Advisors, Inc., $148 million from three mutual funds from Lincoln Investment Planning, Inc. and $250 million in money market and equity assets from FirstMerit Funds, all of which were merged into existing Federated funds.
-- WebCPA staff
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