PITTSBURGH, Nov. 21, 2016 /PRNewswire/ -- Federated
Investors, Inc. (NYSE: FII), one of the nation's largest investment
managers, today announced that it has reached an agreement to
acquire certain investment management related assets of Horizon
Advisers and reorganize the portfolios of three Hancock Horizon
funds into comparable mutual funds managed by Federated's advisory
subsidiaries. While the Hancock Horizon Funds will continue
to offer a range of equity, fixed-income and alternative mutual
funds, approximately $431 million in
one fixed-income and two equity funds will transition to Federated
funds with comparable investment objectives and strategies.
Horizon Advisers, an unincorporated division of Whitney Bank, serves as investment advisor to
the Hancock Horizon Funds.
In relation to the agreement, approximately $144 million will be transitioned from the
Hancock Horizon Value Fund to the Federated MDT Stock Trust,
approximately $131 million will be
reorganized from the Hancock Horizon Growth Fund to the Federated
Kaufmann Large Cap Fund, and approximately $156 million will be transitioned from the
Hancock Horizon Core Bond Fund to the Federated Total Return Bond
Fund.
"Federated has a longstanding history of providing
investment solutions for a variety of market conditions, and our
boards are confident that as shareholders of these three funds
focus on their own financial goals and objectives, they will
benefit from the opportunity to access the Federated funds," said
David Lundgren, chief investment
officer for Horizon Advisers. "Horizon Advisers remains
committed to our remaining 10 Hancock Horizon mutual fund
strategies. Our focus will continue to be on niche asset
classes where we feel our Hancock Horizon Funds provide great value
to our shareholders."
The boards of directors of Federated Investors, the Federated
Funds and the Hancock Horizon Funds have approved the transactions
and related reorganizations, which are now subject to the approval
of shareholders of the Hancock Horizon Funds. Completion of
these transactions also is subject to certain regulatory and other
customary conditions. The Hancock Horizon shareholder
meetings to approve the transitions are tentatively scheduled for
late January 2017, and the
transactions are expected to be completed shortly thereafter.
"As the investment management landscape evolves, firms continue
to approach Federated about opportunities for business transactions
that can provide them with the opportunity to better accommodate
their strategic plans," said Joe
Machi, director of alliances at Federated. "We are pleased
Horizon Advisers chose to work with Federated, and we continue to
look for opportunities with insurers, banks, broker-dealers and
investment advisors as they evaluate their long-term goals."
Federated Investors, Inc. is one of the largest
investment managers in the United
States, managing $364.3
billion in assets as of Sept. 30, 2016. With 123
funds and a variety of separately managed account options,
Federated provides comprehensive investment management to
approximately 8,500 institutions and intermediaries including
corporations, government entities, insurance companies, foundations
and endowments, banks and broker/dealers. For more
information, visit FederatedInvestors.com.
Horizon Advisers is an unincorporated division of
Whitney Bank (established 1899)
which is a wholly owned subsidiary of Hancock Holding Company.
Whitney Bank manages assets for institutional and high net
worth clients including pension plans, endowments, foundations,
government entities, corporations, trusts, and estates.
Whitney Bank uses these trade names: Hancock, Hancock Bank,
and Whitney. For more information, visit
hancockhorizon.com.
Certain statements in this press release, such as those related
to the structure of the transaction, asset transition levels,
future transaction prospects for Federated, and the meeting or
closing dates of the transaction, 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 possibility that Federated does not
successfully complete the acquisition or completes the transaction
in a manner or timetable different from that described above, as
well as 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.
Federated Securities Corp. is distributor of the Federated
funds.
A prospectus/proxy statement with respect to the proposed
transaction will be mailed to shareholders and filed with the
Securities and Exchange Commission (SEC). Investors are urged
to read the prospectus/proxy statement because it contains
important information. The prospectus/proxy statement and
other relevant documents will be available free of charge on the
SEC's Web site at www.sec.gov or by calling
1-800-341-7400.
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SOURCE Federated Investors, Inc.