Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Federated Stays Email Routing List Email & Route  Print Print
Tuesday, March 24, 2015

Federated Stays "Very Active" in Deals, Agreeing to One and Prepping Another

Reported by Neil Anderson, Managing Editor

Federated Investors [profile] just unveiled one acquisition and is prepping another. The Pittsburgh-based money market mutual fund giant has done many money fund deals over the years and is still hungry for more.

"We are committed to the business for the long term," Joe Machi, director of alliances at Federated, tells MFWire. "We'd love to be a solution for people if they're a good fit."

On Monday, March 16 Federated unveiled "exclusive discussions" with Reich & Tang [profile] to potentially offer a landing spot for the latter's money market mutual fund shareholders. Four days earlier, Reich & Tang chief Michael Lydon revealed plans to leave the mutual fund side of its business entirely and liquidate the funds. If the two sides agree on a deal and receive the blessing of fund shareholders, the Federated folks expect that the deal would be done by the end of July.

"Reich and Tang made a decision to exit the money fund business," Machi says. "We are finalizing an agreement with them."

Separately, on Friday, March 20, Federated unveiled a deal to buy assets of the Touchstone Ohio Tax-Free Money Market Fund [profile]. If approved by fund shareholders, the deal would move $91-million in money fund assets into the $391-million Federated Ohio Municipal Cash Trust, and the Federated team expects the deal to close next quarter.

"[Touchstone] decided to exit the money fund portion of their business," Machi says, adding that Federated "has a tremendous amount of experience with these kind of transactions."

"In light of the changing regulatory landscape with respect to money market funds, we sought a party that had a commitment to the money market fund business," states Steve Graziano, president of Touchstone Investments.

Machi predicts that, given the pressures of the prolonged low-interest rate market environment and the "regulatory changes coming down the pipeline," Federated will continue to do "more of these kinds of transactions."

"People are taking a hard look at their products," Machi says. Fundsters, he adds, are wondering , if it's "worth going through all this hassle and change and additional risk and cost and effort."

As of December 31, Federated worked with $362.9 billion, including about $184 billion in the Federated Money Market Obligations Trust alone. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


    Sorry, no records in the database matched your search parameters. Clich back and try again.



  1. Nicsa webinar - New research by Alex Edmans and the Diversity Project - The Power of diverse thinking: How the best teams make decisions, July 1
  2. MFDF Director Discussion Series - Open Forum, July 9
  3. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 10
  4. MFDF Director Discussion Series - Open Forum (Philadelphia), July 15
  5. 2025 MMI Women in Advisory Solutions Forum, Jul 15-16
  6. Nicsa webinar - How Trusted GenAI is Transforming Data Access in Asset Management, July 16
  7. MFDF webinar - M&A and Consolidation in Asset Management, July 16
  8. MFDF webinar - ETF Conversions, July 17
  9. MFDF Director Discussion Series - Open Forum (New York), July 22
  10. MFDF Ask Anything webinar - AI Edition, July 24
  11. MFDF webinar - Use of Derivatives by RICs, July 29
  12. MFDF Director Discussion Series - Open Forum (Columbus, Ohio), August 20
  13. Samfund Soiree Boston 2025, August 21
  14. MFDF webinar - The Audit Committee Chair's Guide to Balancing Duties and Emerging Issues, September 3
  15. ICI ETF Conference, Sep 8-10
  16. Nicsa webinar - Reimagining Reconciliation: AI, Regulation, and Capital Markets Transformation, September 10
  17. MFDF webinar - Series Trust Funds - Compliance and Board Reporting, September 10
  18. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
  19. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  20. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  21. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  22. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  23. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  24. 10th annual Fuse Forum, October 8
  25. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  26. 2025 MMI Annual Conference, Oct 15-17




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use