Federated Investors, Inc. Announces Exclusive Arrangement with Reich & Tang Asset Management, LLC for Transition of Money Market Fund Shareholders
PITTSBURGH, March 16, 2015 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today announced that it has entered into exclusive discussions with Reich & Tang Asset Management, LLC, to enable the shareholders of that firm's money market funds to transition into Federated money market funds with similar investment objectives.
The exclusive arrangement, which resulted from ongoing discussions, is an initial step toward negotiating a final agreement for the transition of shareholders of Reich & Tang's money market funds into Federated's money market funds. The transition is being discussed to assist with the orderly liquidation of Reich & Tang's domestic and offshore money market funds. The final agreement remains subject to further discussions and negotiations between Federated and Reich & Tang. If a final agreement is reached, the transition of shareholders would be subject to various other contingencies, including obtaining certain shareholder, intermediary, regulatory and board consents, authorizations or approvals related to the liquidation and transition of the Reich & Tang money market funds. The announcement allows both companies to begin talking with clients and shareholders about a planned transition in advance of reaching a final agreement. Once a final agreement is executed, both companies would expect the transition to be completed in stages in late June through the end of July 2015.
The following Reich & Tang sponsored funds would be available to be transitioned: Daily Income Fund—Money Market Portfolio; U.S. Government Portfolio; U.S. Treasury Portfolio; and Municipal Portfolio; California Daily Tax Free Income Fund, Inc.; and Daily Dollar International, Ltd., a Cayman Islands-domiciled money market fund open to non-U.S. investors. It is expected that the shareholders of these Reich & Tang money market funds would be transitioned into Federated money market funds with comparable investment objectives and strategies.
Reich & Tang Asset Management, LLC, an affiliate of Natixis Global Asset Management L.P., manages $10.9 billion in money market assets. It is one of the nation's largest firms dedicated solely to offering deposit and liquidity solutions to financial intermediaries and public and private investment entities. The firm is focused on creating, improving, and delivering smarter ideas to help banks, brokerages, trust managers, RIAs, and public and private sector clients maximize the value of their deposit, liquidity, and short-term investment programs. This singular focus across multiple business lines combines to form a unique perspective and expertise that provides a deeper insight into the multiple disciplines of cash management.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $362.9 billion in assets, including $258.8 billion in money market assets, as of Dec. 31, 2014. With 131 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.
Certain statements in this press release, such as those related to negotiating a final agreement, the transition of assets, the timing of the asset transition and various contingencies in obtaining certain regulatory, board and shareholder consents, authorizations or approvals constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the ability of the company to predict the total dollar value of assets transitioned, which could vary significantly depending on a variety of factors identified above, investment performance and investor behavior. Other risks and uncertainties also include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
SOURCE Federated Investors, Inc.
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