PITTSBURGH, March 2, 2016 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today announced the launch of Federated Equity Advantage Fund, an all-cap mutual fund that seeks to provide capital appreciation by investing in stocks of companies with leveraged balance sheets.
The fund is based on an equity investing approach used within Federated High Yield Trust, a fixed-income mutual fund, since 2007. Portfolio managers Mark E. Durbiano and Gene B. Neavin apply a fundamental bottom-up investment process that integrates high-yield credit research and equity analysis. They focus on identifying stable and predictable businesses with leveraged balance sheets and strong free-cash-flow characteristics. This strategy was introduced to institutional investors in June 2015, and is now offered as a mutual fund with the launch of Federated Equity Advantage Fund. The fund will be advised by Federated Investment Management Company, an SEC-registered investment adviser and wholly owned subsidiary of Federated Investors, Inc.
"While leveraged companies are often overlooked because of their smaller market capitalizations and complex capital structures, they have delivered strong historic returns for investors while offering portfolio diversification," said Neavin. "By applying our high-yield group's approach and research, we believe we are uniquely positioned to generate alpha in a misunderstood and inefficiently priced segment of the stock market."
Federated Equity Advantage Fund will be marketed in A and IS share classes through broker/dealers, bank broker/dealers and other financial intermediaries. The fund has the Russell 2000 Value Index as its primary benchmark and the Credit Suisse Leveraged Equity Index as its supplemental benchmark, and will invest at least 80 percent of its net assets in equity investments.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $361.1 billion in assets as of Dec. 31, 2015. With 122 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 8,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. For more information, visit FederatedInvestors.com.
SOURCE Federated Investors, Inc.