PITTSBURGH, July 24, 2015 /PRNewswire/ -- Federated
Investment Management Company, the investment adviser to Federated
Enhanced Treasury Income Fund (NYSE: FTT), today announced that it
is recommending to the fund's Board of Trustees that the fund
convert to an open-end mutual fund. The conversion, which
would need to be approved by both the fund's Board of Trustees and
shareholders, would be expected to be completed during the fourth
quarter of 2015. The fund's two largest shareholders have
agreed to vote in favor of converting FTT to an open-end fund.
The recommended conversion is planned to be a reorganization of
the fund into an open-end mutual fund newly created for that
purpose. Shareholders of FTT would become shareholders of the
new open-end mutual fund and would be permitted to redeem their
shares of the new open-end mutual fund at net asset value, subject
to a one percent redemption fee for the first six months after the
completion of the conversion. In addition, the Board of
Trustees of the new open-end fund would be able to liquidate the
new open-end mutual fund in the future without shareholder approval
if the Board of Trustees determines that it would be in the best
interests of shareholders to do so.
FTT is a closed-end fund that pursues current income and total
return by investing primarily in U.S. Treasury securities. The
recommended conversion would provide liquidity for those
shareholders seeking it while the fund continues to pursue its
investment strategy for those who desire to continue investing in
the strategy.
Federated Investors, Inc. (NYSE: FII) is one of the largest
investment managers in the United
States, managing $349.7
billion in assets as of June
30, 2015. With 130 funds and a variety of separately
managed account options, Federated provides comprehensive
investment management to more than 7,900 institutions and
intermediaries including corporations, government entities,
insurance companies, foundations and endowments, banks and
broker/dealers. For more information, visit
FederatedInvestors.com.
Certain statements made in this press release, such as those
related to the recommended conversion to an open-end fund, and the
opportunity for enhanced liquidity and shareholder value, are
forward-looking statements. Actual future results or occurrences
may differ significantly from those anticipated in any
forward-looking statements due to numerous factors. These
include, but are not limited to: market developments; legal and
regulatory developments; and other additional risks and
uncertainties. As a result, none of the investment adviser,
the fund or any other person assumes responsibility for the
accuracy and completeness of such statements in the future.
Federated Securities Corp.
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SOURCE Federated Investors, Inc.