Federated Investors, a US-based financial services firm, has agreed to acquire money market fund assets worth about $1.1bn from Huntington Asset Advisors.
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Under the terms of the deal, approximately $1.1bn of Huntington money market fund assets will be transitioned to two Federated money market funds with comparable investment objectives and strategies.
Subject to shareholder approval and other contingencies, the deal is slated to be completed in the fourth quarter of 2015.
The agreement will see prime money market assets of around $236m will be reorganized from the Huntington Money Market Fund into Federated Prime Cash Obligations Fund, and about $870m will be reorganized from the Huntington U.S. Treasury Money Market Fund into Federated Treasury Obligations Fund.
The reorganizations will be tax free and are expected to be completed in the fourth quarter of 2015.
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By GlobalDataFederated president and CEO Christopher Donahue said: "The acquisition builds on Federated’s long-term relationship with Huntington by providing current Huntington liquidity-management clients access to Federated’s experienced money managers and proven credit process."
As of 30 June 2015, Federated Investors had managed $349.7bn in assets.
