Federated Investors, Inc. Finalizes Arrangement with Reich & Tang Asset Management, LLC to Transition Approximately $7 Billion in Money Market Fund Shareholder Assets
PITTSBURGH, April 17, 2015 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, and Reich & Tang Asset Management, LLC, announced that they have reached a definitive agreement for Federated to transition shareholder assets from Reich & Tang's money market funds. In connection with the transition, approximately $7 billion in shareholder accounts from six Reich & Tang money market funds will be transitioned into Federated strategies.
The transaction is designed to assist with the orderly liquidation of Reich & Tang's domestic and offshore money market funds. The agreement provides for Federated, Reich & Tang, financial intermediaries and shareholders to work together on a coordinated and cooperative basis to transition the assets in shareholder accounts from the Reich & Tang money market funds to comparable Federated money market funds. Federated is now working with Reich & Tang customers on the transition, which is expected to take place in stages beginning in June and running through July 2015. Federated has been an industry leader in liquidity management for more than 40 years and offers a highly defined process of portfolio construction, intense credit review and experienced investment professionals. Federated is among the top 3 percent1 of money market managers and offers prime, government and tax-free product solutions to clients.
"As a leading provider of liquidity management services, Federated regularly works with organizations of many types and sizes as they evaluate their liquidity businesses," said Solon A. "Bud" Person, national director for the Wealth Management & Cash Division at Federated Investors. "We are currently reaching out to clients of Reich & Tang funds to introduce them to the range of cash-management solutions that we offer and work to achieve a seamless transition of their business to Federated."
"Reich & Tang made a strategic decision to exit the money market fund business and focus on our leading FDIC-insured sweep programs in the bank and brokerage spaces," said Michael Lydon, president and chief executive officer of Reich & Tang. "The agreement with Federated establishes a framework to accomplish this goal and provides us with the peace of mind that the Reich & Tang money market shareholders will have the option to move forward with a premier money market fund provider."
The transaction and related transition of assets are subject to certain customary approvals and contingencies, such as shareholder consents.
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.
Reich & Tang Asset Management, LLC, an affiliate of Natixis Global Asset Management L.P., 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.
1) Strategic Insight, Feb. 28, 2015. Based on assets under management in open-end funds.
Certain statements in this press release, such as those related to the transition of assets, the timing of the asset transition and various contingencies in obtaining certain shareholder consents, authorizations or approvals, and statements regarding the ability to complete transactions, achieve goals, and transition assets 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.
Share this article