Federated Investors, Inc. Completes Strategic Acquisition of International Equity Assets and Hires Two Investment Managers
- $365.7 million equity assets transitioned to new Federated InterContinental Fund
(PITTSBURGH, Pa., and NEW YORK, Aug. 28, 2007) — Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today announced the completion of the acquisition of certain assets of Rochdale Investment Management LLC that relate to the management of the $365.7 million Rochdale Atlas Portfolio, a mutual fund that invests in international stocks. The announcement was made by Federated President and CEO J. Christopher Donahue and Rochdale Chairman Carl Acebes.
Federated transitioned the assets of the Rochdale Atlas Portfolio into the new Federated InterContinental Fund and hired two Rochdale investment managers, Audrey H. Kaplan and Geoffrey Pazzanese, to manage the new Federated fund that will continue the investment operations of the Rochdale fund.
The Federated InterContinental Fund is positioned to be a core international equity holding that invests in both developed and emerging markets. It is managed through a proprietary process that focuses on identifying the country markets with the strongest potential for performance.
The Federated InterContinental Fund, as the successor to the Rochdale fund, has an overall 5-star Morningstar Rating among the 547 foreign large-blend funds in Morningstar’s Foreign Large-Blend Category. Morningstar ratings are based on risk-adjusted total return for the period ended June 30, 2007. The overall rating is derived from a weighted average of a fund’s 3-, 5- and 10-year average annual returns, as applicable.
Based on total return, the Federated InterContinental Fund (A shares), as the successor to the Rochdale fund, outperformed its Lipper International Multi-Cap Core Category average for the 1-, 3- and 5-year periods as of June 30, 2007, where it ranked in the first, second and third percentiles of its Lipper category, respectively. For the periods ended June 30, 2007, Federated InterContinental Fund, as the successor to the Rochdale fund, ranked 2 out of 352 funds for 1 year; 4 out of 246 for 3 years; and 4 out of 190 for 5 years.
“Through its strategic combination of stocks from developed and emerging market countries, the Federated InterContinental Fund offers mutual fund investors a higher level of diversification, making it a solid addition to Federated’s international equity fund line-up,” Donahue said. “Along with the recent hiring of a team leader for our international portfolio management efforts, the acquisition of these assets and Rochdale’s proprietary country allocation technology demonstrate our commitment to excellence in international investing.”
“Our clients will continue to benefit from the innovative investment intelligence that Rochdale developed, combined with the substantial global resources of Federated,” Acebes said.
Kaplan, who has more than 18 years of industry experience, will be senior vice president and senior portfolio manager for the Federated InterContinental Fund. Prior to joining Federated, she managed the Rochdale Atlas Portfolio at Rochdale Investment Management; worked in European quantitative strategy for Merrill Lynch in London; researched global emerging markets at Robert Fleming in London; and completed equity, fixed-income and derivative analysis with Salomon Brothers in Tokyo and New York.
Pazzanese, who has seven years of industry experience, will serve as assistant vice president and portfolio manager on the Federated InterContinental Fund. He most recently served as portfolio manager for the Rochdale Atlas Portfolio and senior quantitative analyst at Rochdale working on international markets. His previous experience includes working on the sell side with the international quantitative strategy group at Merrill Lynch and with the Italian engineering firm AXIS S.p.A. in Florence, Italy, as a sales and marketing manager.
The transaction was approved by Rochdale Atlas Portfolio shareholders at a meeting on Aug. 24, 2007. The transaction had previously been approved by the board of directors of Federated Investors, Inc., the Federated mutual fund board of trustees and the Rochdale Investment Trust board of trustees.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing approximately $260 billion in assets as of June 30, 2007. With 151 mutual funds and various separately managed account options, Federated provides comprehensive investment management to more than 5,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.
Rochdale Investment Management LLC is a private investment counseling firm specializing in intelligently personalized portfolio management for high net worth individuals. Based in New York City with offices nationwide, Rochdale manages $2.6 billion in assets as of June 30, 2007. Working in concert with each client’s financial advisor or CPA, Rochdale develops and manages a customized portfolio for each client. Investment strategies are implemented through proprietary separate accounts and funds. The firm’s hallmark is providing integrity, intelligence and innovation in investment management. For more information, visit www.rochdale.com.
Certain statements in this press release, such as those related to the diversification of the Federated InterContinental Fund, Federated’s commitment to international investing, and the benefits to clients resulting from the transaction, constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of Federated, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Among other risks and uncertainties is the ability of Federated to successfully maintain diversification in the portfolio, maintain its commitment to international investing, and to provide continued benefits to clients, and the risk factors discussed in Federated’s annual and quarterly reports as filed with the Securities and Exchange Commission. Many of these factors may be impacted by the ongoing threat of terrorism. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither Federated nor any other person assumes responsibility for the accuracy and completeness of such statements.