PITTSBURGH, Nov. 19, 2019 /PRNewswire/ -- Federated
Investors, Inc. (NYSE: FII), a leading global investment manager,
today announced the acquisition of certain components of the PNC
Capital Advisors LLC (PCA) investment management business. The
transaction involved the reorganization of 18 PNC equity,
fixed-income and liquidity mutual funds into 16 corresponding
Federated mutual funds and the transition of a five-person
Cleveland-based international
equity portfolio management team from PCA to Federated. The
acquisition also included a portion of PCA's separate account and
separately managed account businesses.
The reorganization of $14.0
billion in assets comprised approximately $11.3 billion in liquidity assets, $2.3 billion in equity assets and $450 million in fixed-income assets. Each mutual
fund reorganization was approved by PNC fund shareholders.
"This transaction builds upon Federated's long-term relationship
with PNC and provides the shareholders of the funds and other PNC
customers access to Federated's diverse range of investment
strategies, proven performance and extensive customer service
capabilities. Federated continues to seek alliance and acquisition
opportunities in the U.S. and throughout the world," said J.
Christopher Donahue, president and
chief executive officer of Federated Investors. "We also are
pleased to offer the strong historical performance of the
international funds to our customers as complements to our existing
range of international equity options."
The three fundamentally driven international equity funds that
are now part of the Federated complex inherit the performance
established by the Cleveland-based
investment management team. Led by Martin
Schulz, senior vice president and head of the international
growth team, the team averages 13 years of industry experience and
11 years working together. Polaris Capital Management had served as
sub-advisor to the value component of the PNC International Equity
Fund and has been retained as sub-advisor for the Federated
International Equity Fund.
The $1.6 billion Federated
International Equity Fund has earned an overall 4-star rating from
Morningstar performance for I Shares in the Foreign Large Growth
category. The $5 million Federated
International Growth Fund has an overall 4-star Morningstar rating
for A, I and R6 Share classes out of 396 funds in the same
Morningstar category, as of Sept. 30,
2019.
Federated will pay PCA an estimated total purchase price of
approximately $56 million for the
acquisition.
The liquidity, equity and fixed-income fund transitions are
shown below:
Liquidity Fund
Transitions
|
|
PNC
Funds
|
Acquired
Net
Assets
(millions)*
|
Federated
Funds
|
PNC Government Money
Market Fund
|
$9,483
|
Federated Government
Obligations Fund
|
PNC Treasury Money
Market Fund
|
$1,499
|
Federated U.S. Treasury
Cash Reserves Fund
|
PNC Treasury Plus
Money Market Fund
|
$305
|
Federated Treasury
Obligations Fund
|
|
*As of Nov. 15,
2019
|
Equity and
Fixed-income Fund Transitions
|
|
PNC
Funds
|
Acquired
Net
Assets
(millions)*
|
Federated
Funds
|
Share
Class
|
Overall
Morningstar
Rating
|
Morningstar
Category/
Number
of
Funds
|
PNC International
Equity
|
$1,610
|
(New) Federated
International Equity
|
A
C
IS
R6
|
***†
***†
****†
****†
|
Foreign
Large
Growth/
396
|
PNC Ultrashort Bond
Fund
|
$201
|
Federated
Ultrashort
Bond Fund
|
IS
|
****
|
Ultrashort
Bond/
154
|
PNC Multi-Factor
Small
Cap Core
|
$116
|
Federated MDT
Small
Cap Core
|
A
C
IS
R6
|
****
***
****
***
|
Small
Blend/
640
|
PNC Total Return
Advantage
|
$143
|
Federated Total
Return
Bond
|
IS
SS
|
***
***
|
Intermediate-
Term Bond/
901
|
PNC Small
Cap
|
$114
|
Federated MDT
Small
Cap Core
|
A
C
IS
|
****
***
****
|
Small
Blend/
640
|
PNC Multi-Factor
Small
Cap Growth
|
$103
|
Federated MDT
Small
Cap Growth
|
A
C
IS
R6
|
***
***
****
***
|
Small
Growth/
584
|
PNC Multi-Factor
Large
Cap Value
|
$110
|
Federated MDT
Large
Cap Value
|
A
C
IS
|
***
***
***
|
Large
Value/
1,096
|
PNC Multi-Factor
Large
Cap Growth
|
$102
|
Federated MDT
Large
Cap Growth
|
A
C
IS
|
***
**
***
|
Large
Blend/
1,256
|
PNC Tax Exempt
Limited
Maturity Bond
|
$72
|
Federated Short-
Intermediate Duration
Municipal
Trust
|
IS
SS
|
****
***
|
Municipal
National
Short/
179
|
PNC Intermediate
Tax
Exempt Bond
|
$34
|
Federated
Intermediate
Municipal Trust
|
IS
SS
|
***
***
|
Municipal
National
Intermediate/
258
|
PNC Balanced
Allocation
|
$11
|
Federated MDT
Balanced
|
A
C
IS
|
***
***
****
|
Allocation –
50% to 70%/
658
|
PNC Multi-Factor
Small
Cap Value
|
$14
|
Federated MDT
Small
Cap Core Fund
|
A
C
IS
|
****
***
****
|
Small
Blend/
640
|
PNC Emerging
Markets
Equity
|
$13
|
(New) Federated
Emerging Markets
Equity
|
IS
|
—
|
—
|
PNC
Multi-Factor All Cap
|
$5
|
Federated MDT All
Cap
Core
|
A
C
IS
|
****
****
****
|
Large
Value/
1,090
|
PNC International
Growth
|
$5
|
(New) Federated
International Growth
|
A
IS
|
****†
****†
|
Foreign
Large
Growth/
396
|
|
† Morningstar
rankings are for current equivalent PNC fund share class as of
Sept. 30, 2019.
Ratings are based on risk-adjusted total return as of 9/30/2019.
The overall rating is derived from a weighted average of the
fund's 3-, 5- and 10-year average annual returns as applicable.
Past performance is no guarantee of future results.
|
Federated Investors, Inc. is a leading global investment
manager with $527.2 billion in assets
under management as of Sept. 30,
2019. Our investment solutions span 131 equity,
fixed-income, alternative/private markets, multi-asset and
liquidity management strategies and a range of separately managed
account strategies. Providing comprehensive investment management
to more than 11,000 institutions and intermediaries, our clients
include corporations, government entities, insurance companies,
foundations and endowments, banks and broker/dealers. Headquartered
in Pittsburgh, Federated's nearly
1,900 employees include those in New
York, Boston, London and several other offices worldwide. In
2018, Federated acquired a majority interest in Hermes Investment
Management, which provides world-class active management and
stewardship services. For more information, visit
FederatedInvestors.com.
###
Certain statements in this press release, such as those related
to Federated's efforts to seek alliance and acquisition
opportunities and payment of deal consideration, 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. Among other risks
and uncertainties is the ability of Federated to identify and
complete suitable acquisitions, and 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.
Morningstar Category identifies funds based on their actual
investment styles as measured by their underlying portfolio
holdings over the past three years. If the fund is less than three
years old, the category is based on the life of the fund. ©2019
Morningstar, Inc. All Rights Reserved. The information contained
herein: (1) is proprietary to Morningstar; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this
information. Past performance is no guarantee of future results.
The Morningstar Rating™ for funds, or "star rating", is calculated
for managed products (including mutual funds, variable annuity and
variable life subaccounts, exchange-traded funds, closed-end funds,
and separate accounts) with at least a three-year history.
Exchange-traded funds and open-ended mutual funds are considered a
single population for comparative purposes. It is calculated based
on a Morningstar Risk-Adjusted Return measure that accounts for
variation in a managed product's monthly excess performance,
placing more emphasis on downward variations and rewarding
consistent performance. The top 10% of products in each product
category receive 5 stars, the next 22.5% receive 4 stars, the next
35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom
10% receive 1 star. The Overall Morningstar Rating for a managed
product is derived from a weighted average of the performance
figures associated with its three-, five-, and 10-year (if
applicable) Morningstar Rating metrics. The weights are: 100%
three-year rating for 36-59 months of total returns, 60% five-year
rating/40% three-year rating for 60-119 months of total returns,
and 50% 10-year rating/30% five-year rating/20% three-year rating
for 120 or more months of total returns. While the 10-year overall
star rating formula seems to give the most weight to the 10-year
period, the most recent three-year period actually has the greatest
impact because it is included in all three rating periods. Ratings
do not take sales charges into account.
Federated International Equity Fund was rated against the
following numbers of U.S.-domiciled Foreign Large Growth funds over
the following time periods. Ratings are for A, C, IS and R6 Shares;
other classes may have different performance characteristics. For
the 3-, 5- and 10-year periods ended 9/30/19, the fund's A Shares
received 3, 3 and 3 stars, the fund's C Shares received 3, 3 and 3
stars, the fund's Institutional Shares received 3, 3 and 4 stars,
and the fund's R6 Shares received 3, 3 and 4 stars and was rated
among 396, 340 and 247 funds, respectively.
Federated International Growth Fund was rated against the
following numbers of U.S.-domiciled Foreign Large Growth funds over
the following time periods. Ratings are for IS and A Shares; other
classes may have different performance characteristics. For the
3-year period ended 9/30/19, the fund's A and Institutional Shares
received 4 and 4 stars and was rated among 396 and 396 funds,
respectively. Past performance is no guarantee of future
results.
Federated MDT Small Cap Core Fund was rated against the
following numbers of U.S.-domiciled Small Blend funds over the
following time periods. Ratings are for A, C, IS and R6 Shares;
other classes may have different performance characteristics. For
the 3-, 5- and 10-year periods ended 9/30/19, the fund's A Shares
received 3, 4 and 4 stars, the fund's C Shares received, 2, 3 and 3
stars, the fund's Institutional Shares received 3, 4 and 4 stars,
and the fund's R6 Shares received 3, 4 and 4 stars, and was rated
among 640, 508 and 371 funds, respectively. Past performance is no
guarantee of future results.
Federated Ultrashort Bond Fund was rated against the following
numbers of U.S.-domiciled Ultrashort Bond funds over the following
time periods. Ratings are for Institutional Shares; other classes
may have different performance characteristics. For the 3-, 5- and
10-year periods ended 9/30/19, the fund's Institutional Shares
received 4, 4 and 4 stars, and was rated among 154, 130 and 57
funds, respectively. Past performance is no guarantee of future
results.
Federated Total Return Bond Fund was rated against the following
numbers of U.S.-domiciled Intermediate-Term Bond funds over the
following time periods. Ratings are for Institutional Shares and
Service Shares; other classes may have different performance
characteristics. For the 3-, 5- and 10-year periods ended 9/30/19,
the fund's Institutional Shares received 3, 4 and 3 stars, and the
fund's Service Shares received 3, 3 and 2 stars and was rated among
539, 448 and 332 funds, respectively. Past performance is no
guarantee of future results.
Federated MDT Small Cap Growth Fund was rated against the
following numbers of U.S.-domiciled Small Growth funds over the
following time periods. Ratings are for A, C, Institutional and R6
Shares; other classes may have different performance
characteristics. For the 3-, 5- and 10-year periods ended 9/30/19,
the fund's A Shares received 3, 3 and 3 stars, the fund's C Shares
received, 2, 3 and 3 stars, the fund's Institutional Shares
received 3, 4 and 4 stars, and the fund's R6 Shares received 3, 4
and 4 stars, and was rated among 584, 519 and 399 funds,
respectively. Past performance is no guarantee of future
results.
Federated MDT Large Cap Value Fund was rated against the
following numbers of U.S.-domiciled Large Value funds over the
following time periods. Ratings are for A, C and Institutional
Shares; other classes may have different performance
characteristics. For the 3-, 5- and 10-year periods ended 9/30/19,
the fund's A Shares received 3, 3 and 3 stars, the fund's C Shares
received 2, 2 and 3 stars, and the fund's Institutional Shares
received 3, 3 and 4 stars, and was rated among 1,090, 944 and 693
funds, respectively. Past performance is no guarantee of future
results.
Federated MDT Large Cap Growth Fund was rated against the
following numbers of U.S.-domiciled Large Blend funds over the
following time periods. Ratings are for A, C and Institutional
Shares; other classes may have different performance
characteristics. For the 3-, 5- and 10-year periods ended 9/30/19,
the fund's A Shares received 4, 3 and 3 stars, the fund's C Shares
received, 4, 2 and 2 stars and the fund's Institutional Shares
received 4, 3 and 3 stars and was rated among 1,243, 1,110 and 822
funds, respectively. Past performance is no guarantee of future
results.
Federated Short-Intermediate Duration Municipal Trust was rated
against the following numbers of U.S.-domiciled Municipal National
Short funds over the following time periods. Ratings are for
Institutional Shares and Service Shares; other classes may have
different performance characteristics. For the 3-, 5- and 10-year
periods ended 9/30/19, the fund's Institutional Shares received 4,
4 and 4 stars, and the fund's Service Shares received 3, 3 and 3
stars and was rated among 179, 162 and 117 funds, respectively.
Past performance is no guarantee of future results.
Federated Intermediate Municipal Trust was rated against the
following numbers of U.S.-domiciled Municipal National Intermediate
funds over the following time periods. Ratings are for
Institutional Shares and Service Shares; other classes may have
different performance characteristics. For the 3-, 5- and 10-year
periods ended 9/30/19, the fund's Institutional Shares received 3,
3 and 3 stars, and the fund's Service Shares received 3, 3 and 3
stars and was rated among 244, 217 and 149 funds, respectively.
Past performance is no guarantee of future results.
Federated MDT Balanced Fund was rated against the following
numbers of U.S.-domiciled Allocation—50% to 70% Equity funds over
the following time periods. Ratings are for A, C, and Institutional
Shares; other classes may have different performance
characteristics. For the 3-, 5- and 10-year periods ended 9/30/19,
the fund's A Shares received 4, 3 and 3 stars, the fund's C Shares
received 4, 3 and 2 stars, the fund's Institutional Shares received
4, 4 and 3 stars, and was rated among 658, 581 and 427 funds,
respectively. Past performance is no guarantee of future
results.
Federated MDT All Cap Core Fund was rated against the following
numbers of U.S.-domiciled Large Value funds over the following time
periods. Ratings are for A, C, and Institutional Shares; other
classes may have different performance characteristics. For the 3-,
5- and 10-year periods ended 9/30/19, the fund's A Shares received
5, 4 and 4 stars, the fund's C Shares received, 5, 4 and 3 stars,
and the fund's Institutional Shares received 5, 4 and 4 stars, and
was rated among 1,090, 944 and 693 funds, respectively. Past
performance is no guarantee of future results.
Federated Securities Corp. is distributor of the Federated
funds.
Investors should carefully consider each fund's investment
objectives, risks, charges and expenses before investing. To obtain
a summary prospectus or prospectus containing this and other
information, contact us or view the prospectus provided at
FederatedInvestors.com. Please carefully read the summary
prospectus or prospectus before investing.
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SOURCE Federated Investors, Inc.