PITTSBURGH, Aug. 14, 2015 /PRNewswire/ -- Federated Investors, Inc. (NYSE:FII), one of the nation's largest investment managers, today announced that the Board of Trustees of Federated Enhanced Treasury Income Fund (NYSE: FTT) approved the conversion of FTT from a closed-end fund to an open-end mutual fund through a tax-free reorganization of FTT into a newly created open-end mutual fund.  The conversion is subject to shareholder approval.

In addition, the board approved the agenda for FTT's Annual Meeting of Shareholders, which is currently scheduled for Oct. 12, 2015 at 4000 Ericson Drive, Warrendale, Pa., 15086-7561 at 10 a.m. Eastern time.  At the meeting, shareholders of record as of Aug. 24, 2015 will be asked to approve the conversion and to consider the election of  certain trustees.  Two of the fund's large shareholders have agreed to vote in favor of the conversion and the trustee nominees, and one has withdrawn its shareholder proposals.  If approved by shareholders, FTT's conversion to an open-end fund is expected to be completed during the fourth quarter of 2015. 

If the conversion is approved by shareholders and consummated, 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 consummation of the conversion.  In addition, the Board of Trustees of the new open-end fund would be able to liquidate that 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.

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 conversion to an open-end fund, 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.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/board-of-trustees-of-federated-enhanced-treasury-income-fund-approves-funds-conversion-to-open-end-fund-300128863.html

SOURCE Federated Investors, Inc.

Copyright 2015 PR Newswire

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