PITTSBURGH, July 24, 2015 /PRNewswire/ -- Federated Investment Management Company, the investment adviser to Federated Enhanced Treasury Income Fund (NYSE :FTT ), today announced that it is recommending to the fund's Board of Trustees that the fund convert to an open-end mutual fund. The conversion, which would need to be approved by both the fund's Board of Trustees and shareholders, would be expected to be completed during the fourth quarter of 2015. The fund's two largest shareholders have agreed to vote in favor of converting FTT to an open-end fund.
The recommended conversion is planned to be a reorganization of the fund into an open-end mutual fund newly created for that purpose. Shareholders of FTT would become shareholders of the new open-end mutual fund and would be permitted to redeem their shares of the new open-end mutual fund at net asset value, subject to a one percent redemption fee for the first six months after the completion of the conversion. In addition, the Board of Trustees of the new open-end fund would be able to liquidate the new open-end mutual fund in the future without shareholder approval if the Board of Trustees determines that it would be in the best interests of shareholders to do so.
FTT is a closed-end fund that pursues current income and total return by investing primarily in U.S. Treasury securities. The recommended conversion would provide liquidity for those shareholders seeking it while the fund continues to pursue its investment strategy for those who desire to continue investing in the strategy.
Federated Investors, Inc. (NYSE :FII ) is one of the largest investment managers in the United States, managing $349.7 billion in assets as of June 30, 2015. With 130 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 7,900 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. For more information, visit FederatedInvestors.com.
Certain statements made in this press release, such as those related to the recommended conversion to an open-end fund, and the opportunity for enhanced liquidity and shareholder value, are forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to: market developments; legal and regulatory developments; and other additional risks and uncertainties. As a result, none of the investment adviser, the fund or any other person assumes responsibility for the accuracy and completeness of such statements in the future.
Federated Securities Corp.
SOURCE Federated Investors, Inc.