PITTSBURGH, March 20, 2015 /PRNewswire/ -- Federated
Investors, Inc. (NYSE: FII), one of the nation's largest investment
managers, and Touchstone Advisors, Inc., have reached a definitive
agreement regarding the acquisition by Federated of certain assets
relating to Touchstone's management of the Touchstone Ohio Tax-Free
Money Market Fund, a series of Touchstone Tax-Free Trust. In
connection with the acquisition, approximately $91 million in tax-free money market assets will
be reorganized from the Touchstone Ohio Tax-Free Money Market Fund
into Federated Ohio Municipal Cash Trust, a portfolio with a
similar investment objective.
Established in 1990, Federated Ohio Municipal Cash Trust has
approximately $391 million in net
assets and is a portfolio of the Federated Money Market Obligations
Trust, which has approximately $184
billion in aggregate net assets. With approximately
$19 billion in tax-free,
state-specific money market assets under management, Federated
offers more tax-free state money market products than any other
investment manager.
"Federated's experience in handling these types of transactions
and our commitment to providing a variety of liquidity-management
solutions for our clients provide an ideal opportunity for the
shareholders of the Touchstone fund to transition to Federated,"
said Joe Machi, director of
alliances at Federated. "As a leading provider of cash management
services, Federated regularly works with organizations of many
types and sizes as they evaluate their liquidity-management needs,
and we continue to seek opportunities for mutually beneficial
transactions."
"In light of the changing regulatory landscape with respect to
money market funds, we sought a party that had a commitment to the
money market fund business. Federated offers shareholders of the
Touchstone Ohio Tax-Free Money Market Fund the opportunity to
continue their investments in a larger fund with comparable
investment objectives, investment strategies, tax benefits,
expenses and performance," said Steve
Graziano, president of Touchstone Investments.
The reorganization is expected to be tax-free and is anticipated
to be completed in the second quarter of 2015. Closing of the
transaction is subject to shareholder approval and certain other
contingencies.
About Federated Investors, Inc.
Federated Investors, Inc. is one of the largest investment
managers in the United States,
managing $362.9 billion in 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.
About Touchstone Investments
Touchstone Investments is a mutual fund company committed to
providing investors with access to institutional asset managers who
act in a sub-advisory capacity. While its sub-advisors are held to
strict performance standards, they work with a large measure of
independence and operate within their own demonstrated areas of
expertise. Touchstone's rigorous asset manager evaluation process
and robust oversight approach are designed to ensure delivery on
Touchstone's commitment of achieving competitive long-term results.
The Touchstone Funds are advised by Touchstone Advisors, Inc., a
registered investment advisor, and are distributed nationally
through intermediaries including broker-dealers, financial planners
and institutions by Touchstone Securities, Inc., a registered
broker-dealer and member FINRA/SIPC. Touchstone, Touchstone Funds
and Touchstone Investments are federal service mark registrations
and applications owned by IFS Financial Services, Inc. Touchstone
Securities, Inc., Touchstone Advisors, Inc., and IFS Financial
Services, Inc., are members of Western & Southern Financial
Group. For more information, please visit
TouchstoneInvestments.com.
About Western & Southern Financial Group
Founded in Cincinnati in 1888
as The Western and Southern Life Insurance Company, Western &
Southern Financial Group (Western & Southern) has grown into a
diversified family of financial services companies. Its assets
owned ($43 billion) and managed
($27 billion) totaled $70 billion as of Dec. 31,
2014. For more information on the Western & Southern
family of companies, visit www.westernsouthern.com. Western &
Southern is the title sponsor of the Western & Southern Open
(www.wsopen.com), a premier event in the U.S. Open Series played
each August by the world's top-ranked professional male and female
tennis players.
Assets for Touchstone Ohio Tax-Free Money Market Fund, Federated
Ohio Municipal Cash Trust and Federated Money Market Obligations
Trust are as of March 17, 2015.
Certain statements in this press release, such as those related
to the structure and the closing date of the transactions and
opportunities for shareholder continued investment, 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 possibility that Federated or Touchstone
does not successfully complete the acquisition or completes the
transactions in a manner or timetable different from that described
above, as well as 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.
Federated Funds are distributed by Federated Securities Corp.
(Member FINRA), a wholly owned subsidiary of Federated Investors,
Inc.
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SOURCE Federated Investors, Inc.