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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/federated-investors-inc-finalizes-arrangement-with-reich--tang-asset-management-llc-to-transition-approximately-7-billion-in-money-market-fund-shareholder-assets-300067745.html
SOURCE Federated Investors, Inc.