US-based Federated Investors has signed a definitive agreement with Huntington Asset Advisors to purchase certain assets relating to Huntington’s management of its fixed-income mutual funds.
Under the deal, approximately US$421 million in fixed-income assets will be reorganized from five Huntington fixed-income mutual funds into five existing Federated fixed-income mutual funds with similar investment objectives.
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According to Federated Investors, the reorganization is expected to be tax-free and will be anticipated to be completed in the second quarter of 2014.
The closing of the transaction is subject to shareholder approval and certain other contingencies.
Christopher Donahue, president and CEO of Federated Investors, said: "For decades, Federated has worked closely with banks to develop and offer high-quality investment products that meet the financial goals of their customers.
"Federated’s extensive range of fixed-income strategies and our intermediary-driven customer-service approach provide an ideal opportunity for the shareholders of the Huntington Funds to transition to Federated. We continue to seek opportunities for similar mutually beneficial transactions."
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By GlobalDataJoe Rezabek, president of the Huntington Funds, added: "The transaction with Federated will allow us to focus on our equity funds where we have expertise and a commitment to long-term growth."
