made the move to outsource fund transfer agency service on Thursday. The fund firm announced their intention to award the contract to Boston Financial
in February; Boston Financial began providing services effective Thursday.
The move, which caps ten years of in-house trade processing, is the result of the firm "redefining our service model," said spokeswoman Meghan McAndrew.
"[T]his arrangement allows Federated to concentrate on our core competencies-providing
competitive investment results, powerful product distribution and top-quality customer service," said J. Christopher Donahue
, president and chief executive officer of Federated Investors.
As part of the move, 200 Boston-based Federated employees will join Boston Financial, and Federated will establish an internal liason group to communicate with Boston Financial.
Federated anticipates a post-tax income of $0.01 to $0.02 per share for the first half of 2004 as a result of the move.
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