Federated Investors, Inc. Introduces Federated Project and Trade Finance Tender Fund
- Builds upon Federated's 10 years of experience in managing trade finance assets
- Alternative strategy features low correlation to equity, fixed-income and commodity market returns
PITTSBURGH, Dec. 12, 2016 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today announced the launch of Federated Project and Trade Finance Tender Fund, a closed-end tender offer fund that seeks to provide total return primarily from income by investing in loans or similar investments used to finance domestic and international trade and related infrastructure projects. The fund is non-diversified and will be continuously offered. The loans and similar portfolio investments of the fund will primarily include trade finance, structured trade, export finance, import finance, supply chain financing and similar project finance assets of sovereign, private or other entities. The fund's investments will be originated primarily in, or have exposure to, global emerging markets.
Trade finance transactions refer to the capital needed to buy or sell, import or export, products or other tangible goods. Project finance transactions are typically used to build something tangible or to expand existing plant capacity to produce more goods for trade.
"Federated has honed the trade finance strategy over the last 10 years and possesses an experienced team of international investing professionals who enlist a thorough process of monitoring, screening, assessing and analyzing transactions to consider for investment," said John B. Fisher, director of Federated and president and chief executive officer of Federated Advisory Companies. "The fund offers investors a rare product with the potential to generate income in a low-yield world, while adjusting with inflation and presenting low correlation with other asset classes."
Christopher P. McGinley, portfolio manager and head of the trade finance team, leads the group of five investment professionals with nearly 80 years combined experience managing approximately $500 million in trade finance assets out of Federated's London office. The portfolio management team reports to Ihab L. Salib, senior portfolio manager and head of the international fixed income group, in Pittsburgh.
The continuously offered closed-end fund's shares are available to investors at net asset value and are not traded on an exchange. Purchases are processed monthly on the last business day of each month, and typically require 30 days' advance notice (which may be waived in the fund's discretion). At the discretion of the fund's board of trustees and provided that it is in the best interests of the fund and shareholders to do so, the fund intends to provide a limited degree of liquidity to shareholders by conducting repurchase offers generally quarterly. Targeted to investors with a minimum investment amount of $500,000, the fund uses one-month London Inter Bank Offered Rate (LIBOR) as its benchmark.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $364.3 billion in assets as of Sept. 30, 2016. With 123 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 8,500 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. For more information, visit FederatedInvestors.com.
Fund shares are subject to special risks including risks associated with non-investment grade securities, interest rate risk, prepayment risk, call risk, credit risk, liquidity risk, risks of investing in derivative contracts and hybrid instruments. The fund is not a complete investment program and you may lose money investing in the fund. An investment in the fund may not be appropriate for all investors. Investors should consider the fund's objective, risks, charges and expenses carefully before investing. The fund's prospectus, which contains this and other information about the fund, should be read carefully before investing. A prospectus is available upon request from your financial advisor, or you may obtain a copy from the fund by calling 1-800-341-7400.
Federated Investment Management Company ("FIMCO"), a directly wholly-owned subsidiary of Federated, acts as the fund's investment adviser under an investment advisory agreement. FIMCO has delegated daily management of some or all of the fund assets to Federated Investors (UK) LLP, a limited liability partnership incorporated in England and Wales and a FIMCO affiliate. Federated Advisory Services Company, an affiliate of FIMCO, provides certain support services to FIMCO.
The fund is a newly organized non-diversified closed-end fund with no history of operations and is designed for long-term investors and not as a trading vehicle.
An investment is subject to investment risk, including the possible loss of the entire principal amount invested and represents an indirect investment in the securities owned by the fund.
See the fund's prospectus for more detailed information on these and other risks, including the risk of investing in trade finance related securities.
Federated Securities Corp.
SOURCE Federated Investors, Inc.
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