Massachusetts Selects Federated Investors to Manage $9.5 Billion in State Liquidity and Bond Pools

(PITTSBURGH, Pa., 07/25/2012 03:20 PM) — Federated Investors, Inc. (NYSE: FII), one of the nation’s largest investment managers, today announced that the Commonwealth of Massachusetts has selected the firm to manage the $9.5 billion Massachusetts Municipal Depository Trust (MMDT) Pools.  Federated expects to manage a liquidity portfolio and a bond fund for the commonwealth, several independent authorities and approximately 290 municipalities.

Federated is an experienced manager of state and municipality assets, providing portfolio management and credit analysis, as well as field marketing and participant point-of-contact services, for state and local governments nationwide.  Founded in 1955, Federated has managed money market products since 1974 and manages more than $274 billion in money market assets1.  Federated is the largest provider of liquidity management services to state pools.

Federated will manage MMDT’s Cash Portfolio and Short Term Bond Fund.  The MMDT Cash Pools invest in high-quality U.S. dollar denominated money market instruments.  The MMDT Short Term Bond Fund invests in high-quality U.S. dollar denominated investment-grade securities.

“We are honored that Massachusetts has selected Federated to manage their investment pools,” said Thomas E. Territ, president of Federated Securities Corp.  “We have a longstanding history of working with state treasurers to deliver customized investment solutions, and we look forward to continuing to establish relationships that provide government investment pools with compelling fixed-income opportunities and high-quality liquidity management services.”

Regionally based support for the MMDT account will be provided by a staff of dedicated sales and service personnel at Federated’s Boston office.  The transition of services to Federated is expected to be completed in the fourth quarter of 2012.

Federated Investors, Inc. (NYSE: FII) is one of the largest investment managers in the United States, managing $363.6 billion in assets as of March 31, 2012.  With 134 funds, as well as a variety of separately managed account options, Federated provides comprehensive investment management worldwide to approximately 4,800 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.  For more information, visit


Certain statements in this press release, such as those relating to establishing relationships with government investment pools, constitute or may 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 the company, 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.  Other risks and uncertainties include the ability of the company to successfully establish such relationships, and also include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission.  As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.

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