Federated Investors, Inc. Adds to Alternatives/Managed-risk Product Team

PITTSBURGH, Dec. 17, 2014 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today announced that it has moved the management team of Federated Prudent Bear Fund under the alternatives/managed-risk product umbrella, which is overseen by Michael T. Dieschbourg, managing director and head of alternatives/managed-risk investments.  Federated's liquid alternatives product line now encompasses: managed-risk strategies, managed volatility, absolute return, managed-tail risk and Prudent Bear.     

In addition, P. Ryan Bend, who serves as senior portfolio manager for the Federated Prudent Bear Fund, takes over leadership of the Prudent Bear equity investment team.  Douglas C. Noland, who has led the team since Federated acquired the Prudent Bear Fund in 2008,  has fulfilled his agreement with Federated and is leaving the company, effective Jan. 1, 2015, to pursue other interests.  Bend will report to Dieschbourg.

"Federated believes that advisers and investors are looking for a variety of ways to counter the impact of market volatility in the short- to mid-term as they pursue competitive returns over a longer period of time," said Stephen F. Auth, chief investment officer for global equities. "With his analytical skills and investment savvy,  Ryan offers a clear vision to the Prudent Bear team.  His leadership enables the team to focus on managing the strategy to be an intelligent hedge that seeks to protect investors during an equity market decline, but also aims to mitigate the costs of being short during a rising market."

Bend has been responsible for portfolio management and fundamental analysis for the portfolio since 2008.  He joined Federated in 2008 as part of the company's acquisition of the Prudent Bear Fund after serving as research coordinator and as an equity analyst for David W. Tice & Assoc. Inc. since 2004.  Bend earned his MBA from Indiana University and his undergraduate business degree from the University of Western Ontario, Canada. He is a CFA charterholder and a member of the board of directors for the CFA Society of Pittsburgh.

Bend will continue to work with his long-time colleague, Chad E. Hudson, CFA, who maintains his current role as portfolio manager of Federated Prudent Bear Fund and who has worked in various capacities on the team since the fund's inception in 1996.  The Prudent Bear team will continue to be supported by long-term analysts including Lila Manassa Murphy, CFA, and Rob Schulte-Albert who have been with the fund since its acquisition by Federated in 2008.  Two additional analysts, Nancy Aversa, CFA, and Keith Hines, CFA, joined the team subsequently to support the portfolio.  The analysts average nearly 14 years of investment experience seeking investments in companies on the long and short sides.

Within Federated's liquid alternative strategies, Federated Prudent Bear offers investors a short-biased equity portfolio that seeks to outperform during a declining stock market, but which adjusts the composition of the short exposure and uses long positions during a long-term rising market.  Going forward, the fund will employ long positions beyond precious metals and natural resources to include other hard-asset categories and individual securities that offer investors value.  

Federated Prudent DollarBear Fund will continue to be managed by Ihab Salib, senior portfolio manager and head of Federated's international fixed-income team.  In addition to serving as a portfolio manager on the DollarBear fund for the past six years, Salib has extensive experience in developed and emerging international bond markets and currency transactions.  He will continue to manage the fund utilizing the resources of the international fixed-income team, including John Sidawi, a portfolio manager with 18 years of investment experience who will join Salib as a portfolio manager for the DollarBear fund. Finally, with Noland's departure, Hudson will join the management team of the DollarBear fund.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $352.3 billion in assets as of Sept. 30, 2014.  With 132 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 7,700 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.  For more information, visit FederatedInvestors.com.

Diversification does not assure a profit nor protect against loss.

Federated Prudent Bear Fund regularly makes short sales of securities, which involves unlimited risk including the possibility that losses may exceed the original amount invested. The fund may also use options and future contracts, which have risks associated with unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. However, a mutual fund investor's risk is limited to one's amount of investment in a mutual fund. The fund may also hold restricted securities purchased through private placements. Such securities may be difficult to sell without experiencing delays or additional costs. Please see the prospectus for further details. Considering the increased risks, the fund may not be suitable for all investors.

Investments in gold and precious metals are subject to additional risks such as the possibility of substantial price fluctuations over a short period of time.

Past performance is no guarantee of future results.

Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or view the prospectus provided on our website at www.FederatedInvestors.com. Please carefully read the summary prospectus or prospectus before investing.

Federated Securities Corp. is distributor of the Federated funds.

Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling and Federated MDTA LLC, each a registered investment adviser.

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SOURCE Federated Investors, Inc.

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