PITTSBURGH, Dec. 12, 2016 /PRNewswire/ -- Federated
Investors, Inc. (NYSE: FII), one of the nation's largest investment
managers, today announced the launch of Federated Project and Trade
Finance Tender Fund, a closed-end tender offer fund that seeks to
provide total return primarily from income by investing in loans or
similar investments used to finance domestic and international
trade and related infrastructure projects. The fund is
non-diversified and will be continuously offered. The loans and
similar portfolio investments of the fund will primarily include
trade finance, structured trade, export finance, import finance,
supply chain financing and similar project finance assets of
sovereign, private or other entities. The fund's investments will
be originated primarily in, or have exposure to, global emerging
markets.
Trade finance transactions refer to the capital needed to buy or
sell, import or export, products or other tangible goods. Project
finance transactions are typically used to build something tangible
or to expand existing plant capacity to produce more goods for
trade.
"Federated has honed the trade finance strategy over the last 10
years and possesses an experienced team of international investing
professionals who enlist a thorough process of monitoring,
screening, assessing and analyzing transactions to consider for
investment," said John B. Fisher,
director of Federated and president and chief executive officer of
Federated Advisory Companies. "The fund offers investors a rare
product with the potential to generate income in a low-yield world,
while adjusting with inflation and presenting low correlation with
other asset classes."
Christopher P. McGinley,
portfolio manager and head of the trade finance team, leads the
group of five investment professionals with nearly 80 years
combined experience managing approximately $500 million in trade finance assets out of
Federated's London office. The
portfolio management team reports to Ihab
L. Salib, senior portfolio manager and head of the
international fixed income group, in Pittsburgh.
The continuously offered closed-end fund's shares are available
to investors at net asset value and are not traded on an exchange.
Purchases are processed monthly on the last business day of each
month, and typically require 30 days' advance notice (which may be
waived in the fund's discretion). At the discretion of the fund's
board of trustees and provided that it is in the best interests of
the fund and shareholders to do so, the fund intends to provide a
limited degree of liquidity to shareholders by conducting
repurchase offers generally quarterly. Targeted to investors with a
minimum investment amount of $500,000, the fund uses one-month London Inter
Bank Offered Rate (LIBOR) as its benchmark.
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.
Fund shares are subject to special risks including risks
associated with non-investment grade securities, interest rate
risk, prepayment risk, call risk, credit risk, liquidity risk,
risks of investing in derivative contracts and hybrid instruments.
The fund is not a complete investment program and you may lose
money investing in the fund. An investment in the fund may not be
appropriate for all investors. Investors should consider the fund's
objective, risks, charges and expenses carefully before
investing. The fund's prospectus, which contains this and
other information about the fund, should be read carefully before
investing. A prospectus is available upon request from your
financial advisor, or you may obtain a copy from the fund by
calling 1-800-341-7400.
Federated Investment Management Company ("FIMCO"), a directly
wholly-owned subsidiary of Federated, acts as the fund's investment
adviser under an investment advisory agreement. FIMCO has delegated
daily management of some or all of the fund assets to Federated
Investors (UK) LLP, a limited liability partnership incorporated in
England and Wales and a FIMCO affiliate. Federated
Advisory Services Company, an affiliate of FIMCO, provides certain
support services to FIMCO.
The fund is a newly organized non-diversified closed-end fund
with no history of operations and is designed for long-term
investors and not as a trading vehicle.
An investment is subject to investment risk, including the
possible loss of the entire principal amount invested and
represents an indirect investment in the securities owned by the
fund.
See the fund's prospectus for more detailed information on these
and other risks, including the risk of investing in trade finance
related securities.
Federated Securities Corp.
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SOURCE Federated Investors, Inc.