PITTSBURGH, June 4, 2015 /PRNewswire/ -- Federated
Investors, Inc. (NYSE: FII), one of the nation's largest investment
managers, today announced further refinements to its plan to
restructure the company's line of money market funds by delineating
which money market funds will be classified as retail money market
funds under the U.S. Securities and Exchange Commission's 2014
rules. In addition, the company announced a series of planned
mergers with the aim of strengthening and streamlining its money
market fund offerings. Federated expects to announce its
institutional money market fund product line in the
future.
"While Federated's clients don't need to make any changes to
their investments now, the planned adjustments to Federated's
product line are the result of an active and ongoing dialogue with
our large, diversified client base," said J. Christopher
Donahue, president and chief executive officer. "As a leading
provider of liquidity management services for 40 years, Federated
continues to work with our clients in an effort to meet their
liquidity needs today and in the future."
Retail money market funds
If all of the anticipated fund mergers are completed, Federated
expects to offer the six retail prime and national municipal funds
listed in the table below. The company also anticipates
offering the 13 state-specific money market funds listed below as
retail money market funds subject to board approval. Each of
the funds named below will continue to permit institutional
investors to invest in the funds until Oct.
14, 2016, when the SEC rule changes go into
effect.
Retail prime and
national municipal money market funds
|
Federated Capital
Reserves Fund
|
Federated Prime Cash
Obligations Fund
|
Federated Municipal
Obligations Fund
|
Federated Tax-Free
Obligations Fund
|
Federated Municipal
Trust
|
Tax-Free Money Market
Fund
|
Retail
state-specific money market funds
|
Federated California
Municipal Cash Trust
|
Federated New Jersey
Municipal Cash Trust
|
Federated Connecticut
Municipal Cash Trust
|
Federated New York
Municipal Cash Trust
|
Federated Florida
Municipal Cash Trust
|
Federated North
Carolina Municipal Cash Trust
|
Federated Georgia
Municipal Cash Trust
|
Federated Ohio
Municipal Cash Trust
|
Federated
Massachusetts Municipal Cash Trust
|
Federated
Pennsylvania Municipal Cash Trust
|
Federated Michigan
Municipal Cash Trust
|
Federated Virginia
Municipal Cash Trust
|
Federated Minnesota
Municipal Cash Trust
|
|
Each retail money market fund will continue to seek a stable
$1.00 per share net asset value
(NAV). Retail money market mutual funds are defined by the
2014 money market fund rules as funds that have policies and
procedures reasonably designed to limit all beneficial owners of
the fund to natural persons. Generally, individuals may
continue to invest in retail money market funds through their
brokerage account, retirement accounts, education and savings
accounts, as well as through ordinary trusts.
Federated Automated Cash Management Trust, Federated Prime Cash
Series and Federated Municipal Cash Series are expected to be
merged into other retail money market funds before the deadline to
designate a fund as retail or institutional.
Money market fund mergers
In an effort to strengthen and streamline its retail money
market fund offerings, Federated plans a series of fund mergers for
certain prime, municipal and government money market funds.
The three retail and four government money market funds listed
below are expected to be merged into designated retail and
government money market funds with similar investment objectives
and principal investment strategies. Federated began notifying its
money market fund shareholders of the planned mergers on
June 3, 2015. Pending any
required approvals, the company expects the mergers to be completed
in late 2015.
Current retail
fund
|
Post-merger
fund
|
Federated Automated
Cash Management Trust
|
Federated Prime Cash
Obligations Fund
|
Federated Prime Cash
Series
|
Federated Prime Cash
Obligations Fund
|
Federated Municipal
Cash Series
|
Federated Municipal
Obligations Fund
|
Current government
fund
|
Post-merger
fund
|
Federated Treasury
Cash Series
|
Federated Trust for
U.S. Treasury Obligations
|
Federated Government
Cash Series
|
Federated Government
Obligations Fund
|
Federated Liberty
U.S. Government Money Market Fund
|
Federated Government
Reserves Fund
|
Federated Automated
Government Cash Reserves
|
Federated Government
Obligations Tax-Managed Fund
|
In addition to the mergers delineated above, in order to
institute the SEC's required changes to Rule 2a-7, Federated plans
to conduct a proxy of Money Market Obligations Trust, the
registrant for the majority of Federated's money market mutual
funds, beginning in late June.
Refinements to Federated's money market fund product line will
continue to evolve as market, client or regulatory changes/guidance
occur before the Oct. 14, 2016, final
compliance date for the 2014 money market fund rules. Certain
refinements, mergers and other changes also remain subject to fund
board, shareholder and other reviews or approvals.
The company continues to work with institutional clients to
create various institutional floating net asset value money market
funds, separate accounts and private funds in an effort to better
meet their liquidity needs. For additional information and future
updates about Federated's liquidity products, visit
FederatedInvestors.com/liquidity.
Federated Investors, Inc. is one of the largest investment
managers in the United States,
managing $355.8 billion in assets as
of March 31, 2015. With 130 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.
The foregoing is not a solicitation of any proxy.
Shareholders should read the proxy statement, which contains
important information relating to the proposals, when it becomes
available.
Certain statements in this press release, such as those related
refinements of Federated's money market fund product line,
client activity, money market fund mergers and 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 complete product line refinements or
fund mergers. 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.
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SOURCE Federated Investors, Inc.