The deals just keep coming. This morning Federated Investors, Inc. (NYSE:FII) announced that it is buying $400 million of mutual fund assets from Minneapolis-based Investment Advisers, Inc. (IAI). The deal comes hours after Old Mutual purchased United Asset Management's $188 million in assets and Nvest with $134 billion in assets. The price of the deal was not announced.

The quick succession of deals in the past week also includes Wanger Asset Management which was picked up last week by Liberty Financial. IAI had been independent since its founding in 1947.

Federated says that it will assume the investment management, distribution and shareholder servicing responsibilities for 11 IAI funds. The assets of the IAI Mutual Funds are primarily (92 percent) invested in equities.

"All of the IAI funds will merge into existing Federated equity, fixed-income and money market funds which illustrates the broad investment expertise of the Federated franchise," J. Christopher Donahue, president and CEO of Federated Investors said. "Federated will continue to seek new opportunities to grow through acquisitions, while providing competitive investment performance, superior customer service and exceptional distribution capabilities to our fund shareholders."

"Watching the evolution of the mutual fund industry over the past several years, it has become clear to us that small, directly-marketed fund families like ours were at a competitive disadvantage," J. Peter Thompson, chair of the board of directors of the IAI Mutual Funds said. "This transaction with Federated, given its significant size, its superior and wide-ranging shareholder services, and its high-quality portfolio management, leaves our shareholders well positioned for the future."

IAI Mutual Funds
Fund	Net Assets as of 6/15/00 (in millions)
IAI Regional	$180.2
IAI Bond	$12.9
IAI International	$11.2
IAI Balanced	$10.5
IAI Emerging Growth	$50.0
IAI Long Term Growth (formerly "IAI Value Fund")	$7.2
IAI Capital Appreciation	$18.7
IAI Growth & Income	$26.5
IAI Midcap Growth	$42.2
IAI Growth	$8.0
IAI Money Market Fund	$18.0

Federated Funds
Fund	Net Assets as of 6/15/00 (in millions)
Federated Capital Appreciation	$644.0
Federated Bond	$929.9
Federated International Equity	$719.6
Federated Stock & Bond	$259.8
Federated Aggressive Growth	$350.9
Federated American Leaders	$3,669.1
Federated Growth Strategies	$1,604.2
Federated Large Cap Growth	$771.1
Federated Auto Cash Management Trust	$3,777.4
Source: Federated and IAI

 

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