PITTSBURGH, Nov. 16, 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 categorized as institutional money
market funds under Rule 2a-7 of the Investment Company Act of 1940
and compliant with regulations issued by the U.S. Securities and
Exchange Commission (SEC) in July 2014. Federated announced
refinements to its government and retail money market funds in
February and June 2015.
"As a result of an active dialogue with our sizeable and varied
client base, Federated will offer four Rule 2a-7 money market funds
designed specifically for institutional investors," said
J. Christopher Donahue, president and chief executive
officer. "Federated, as a leading provider of liquidity
services for the last four decades, continues to work with our
clients in an effort to meet their liquidity needs today and in the
future."
Institutional money market funds
Federated expects to offer the four institutional money market
funds listed in the table below. Each of the funds named
below, beginning on Oct. 14, 2016,
will have an initial net asset value of $1.0000 that may fluctuate, as well as required
provisions for fees and gates. The funds may offer a
potential yield premium, when compared to government money market
funds.
|
Institutional
prime and national municipal money market funds
|
|
Federated Money
Market Management
|
|
Federated Prime
Obligations Fund
|
|
Federated Prime Value
Obligations Fund
|
|
Federated Tax-Free
Trust
|
The company also continues to work with institutional clients to
consider options for various institutional floating net asset value
money market funds, as well as separate accounts and stable value
collective funds, in an effort to better meet their liquidity
needs. The company also plans to begin offering a stable value
private fund for qualified investors in the first quarter of 2016.
For additional information and future updates about Federated's
liquidity products, visit
FederatedInvestors.com/liquidity.
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.
Federated Investors, Inc. is one of the largest investment
managers in the United States,
managing $351.0 billion in assets as
of Sept. 30, 2015. With 129 funds and a variety of
separately managed account options, Federated provides
comprehensive investment management to more than 8,400 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.