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

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

Rating:That Reich and Tang Deal Is ON Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, April 17, 2015

That Reich and Tang Deal Is ON

Reported by Neil Anderson, Managing Editor

Reich and Tang's [profile] deal to hand its money market mutual funds over to Federated Investors [profile] is going to happen this summer.

Last month Michael Lydon, president and CEO of New York City-based Natixis affiliate Reich and Tang, revealed plans to liquidate its six money market mutual funds (then holding about $9.5 billion combined), the liquidity solutions specialist's only mutual funds. Days later, Pittsburgh-based Federated revealed that it was in "exclusive discussions" with Reich and Tang to move the latter's money fund shareholders to Federated.

Today Federated's Joe Machi, director of alliances, confirms that the two sides have "worked through all of those details" and "signed a binding agreement." The deal, slated to go through in stages in June and July, would move the six funds' shareholder assets (now at about $7 billion) into Federated offerings. Federated had $362.9 billion in assets under management as of December 31, including $258.8 billion in money market AUM.

Machi tells MFWire that Reich and Tang's money fund shareholders will be able move into existing Federated money funds (some existing share classes and some new ones).

"We are a good, natural home for these types of shareholders," Machi says of the Reich and Tang money fund customers.

And Federated is creating a new product to handle one of Reich and Tang's, an offshore product.

"We did not have a Cayman product," Mach says. "We are in the process of putting together our Cayman product. It should be up and running in June or so."

"We are currently reaching out to clients of Reich & Tang funds to introduce them to the range of cash-management solutions that we offer and work to achieve a seamless transition of their business to Federated," states Bud Person, national director for Federated's wealth management and cash division.

Lydon states that the Federated deal offers the Reich and Tang team "the peace of mind that the Reich & Tang money market shareholders will have the option to move forward with a premier money market fund provider." He previously explained Reich and Tang's money fund exit as a way to streamline operations to focus on its FDIC deposit programs. 

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

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q2Q1
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:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use