Federated Investors, Inc. Announces Distribution Agreement with London-based GML Capital, a Specialized Investment Manager
(PITTSBURGH, Pa., Jun. 25, 2009) — Federated Investors, Inc. (NYSE: FII), one of the United States' largest investment managers, today announced a strategic agreement with GML Capital LLP, a London-based specialist investment manager, to market and distribute products focused on investment in global trade finance transactions, which will be advised by GML Capital. The announcement was made by Gordon J. Ceresino, vice chairman and executive director of international distribution at Federated, and Stefan Pinter, chief executive officer of GML Capital.
Through this new relationship with GML, Federated expects to develop investment opportunities for its high net worth and institutional investors who can benefit from the attractive characteristics this alternative asset class offers. Trade finance involves financing cross-border imports and exports of goods and services.
Historically, investors seeking alternative investment products have had limited opportunities to gain exposure to the trade finance asset class, which in 2008 generated more than $130 billion of new investment opportunities. This asset class offers investors the potential for attractive returns, historically low default and high recovery rates with low correlation to market indices. The sourcing and structuring of these investments requires the specialized resources and expertise that GML possesses.
"With GML, we look forward to offering investors seeking non-correlated alpha opportunities access to the trade finance market," Ceresino said. "Federated believes that investing in the trade finance asset class is an attractive alternative way of generating additional returns and enhancing diversification in fixed income products."
GML is a fund management and advisory firm that specializes in the emerging markets and trade finance sectors. GML's areas of expertise include investment advisory and management; advising on debt restructuring and debt reduction strategies; debt recovery and trading; corporate finance advisory; and originating, structuring and distributing new financings.
"GML and the investment funds it manages have been structuring, distributing and profitably investing in trade finance transactions since 1991, and trade finance is one of GML's core areas of expertise," Pinter said. "GML is delighted to be working with Federated, given its outstanding reputation for performance and prudence, and Federated's strong relationships with major institutional investors."
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $409.2 billion in assets as of March 31, 2009. With 158 funds and a variety of separately managed account options, Federated provides comprehensive investment management to nearly 5,400 institutions and intermediaries including Federated Announces Distribution Agreement with GML Capital Page 2 of 2 corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. For more information, visit FederatedInvestors.com.
About GML Capital LLP
GML Capital traces its roots to 1983 in London. Authorized and regulated by the Financial Services Authority in the UK, and an SEC registered investment adviser, GML acts as investment adviser and manager to a series of investment funds focusing primarily on emerging market credit. Headquartered in London, GML has offices in Kiev, Moscow, Genoa and Tbilisi and benefits from an extensive network of relationships worldwide. GML staff speak more than 15 languages, and have extensive backgrounds in fund management, trade finance, commercial banking and investment banking. GML's 13-strong London-based investment team has on average 18 years of international finance experience, and almost six years average tenure at GML. For more information, visit
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