Federated Investors' Mutual Funds Complete Acquisition of $465
Eight Riggs equity, fixed-income and money market funds transitioned into eight Federated funds.
(Pittsburgh, PA, ) — Federated Investors, Inc., (NYSE: FII) and Riggs National Corporation (NASDAQ: RIGS), announced the completion of an acquisition between Federated Investors, Inc. and Riggs Investment Advisors, Inc. and Riggs Bank N.A., subsidiaries of Riggs National Corporation. The sale transitioned approximately $465 million in mutual fund assets from eight Riggs mutual funds to eight Federated funds. The announcement was made by J. Christopher Donahue, president and CEO of Federated Investors, Inc., and Robert L. Allbritton, chairman and CEO of Riggs National Corporation.
"Federated's extensive investment capabilities offered the ideal opportunity for Riggs to transition its mutual fund franchise into eight historically strong Federated funds," said Donahue. "Federated continues to find the marketplace receptive as we pursue opportunities that complement our organic growth through bank fund asset transactions and acquisitions in general and specialty areas."
Voting separately by fund, the Riggs funds' shareholders approved the transition of approximately $46.9 million from two domestic equity funds into Federated Capital Appreciation Fund and the Federated Kaufmann Fund; $118.1 million from four fixed-income funds into Federated Total Return Bond, Federated Total Return Government Bond, Federated Short Term Municipal Trust and Federated Intermediate Municipal Trust and $299.6 million from two money market funds into Federated's Automated Cash Management Trust and Automated Government Money Trust.
"The completion of this transaction is the final step in providing Riggs the ability to continually select high quality mutual funds in the marketplace for our wealth-management clients," Allbritton said. "We are pleased that our fund shareholders embraced the transition to Federated, which offers significant breadth of investment products and a thriving franchise."
With this announcement, Federated has acquired approximately $4.4 billion in mutual fund assets since 2000. These transactions include $346 million in primarily equity fund assets from Investment Advisors, Inc., $148 million from three mutual funds from Lincoln Investment Planning, Inc. and $250 million in money market and equity assets from FirstMerit Funds, all of which were merged into existing Federated funds. The $3.2 billion acquisition of the prominent Kaufmann Fund, now called the Federated Kaufmann Fund, was finalized in April 2001.
Riggs National Corporation. The largest bank holding company headquartered in the nation's capital, has 48 branches in the Washington, D.C. metropolitan area, as well as locations in Miami, London, Channel Islands and Berlin. Riggs commands the largest market share in the District of Columbia and specializes in banking and financial management products and services for individuals, nonprofit organizations, and businesses. Riggs is also the dominant financial institution serving embassies, both in the United States and abroad.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $202 billion in assets as of June 30, 2003. With more than 135 mutual funds, various separately managed accounts and closed-end funds, Federated provides comprehensive investment management to more than 5,900 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top one percent of money market fund managers in the industry, the top four percent of fixed-income fund managers1 and the top five percent of equity fund managers.1 For more information, visit FederatedInvestors.com.
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