A press release entitled, "Federated Investors, Inc. to Acquire Money Market Assets from Fifth Third Asset Management, Inc. says, "Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, and Fifth Third Bank announced that a definitive agreement has been reached regarding the acquisition of certain assets relating to the management of Fifth Third money market funds. In connection with the acquisition, approximately $5 billion of money market assets will be reorganized from four Fifth Third money market funds into four existing Federated money market funds with similar investment objectives. The transaction is not expected to have a material impact on Fifth Third Bancorp's results."
J. Christopher Donahue, president and chief executive officer of Federated Investors, says, "For decades, Federated has worked closely with banks to offer investment products that meet the needs of their customers. That experience, combined with our expertise in diligent credit analysis and fundamental research, provides an ideal opportunity for Fifth Third to transition these assets. Federated will continue to closely review further opportunities for strategic alliances that best serve our bank clients."
Kevin T. Kabat, president and CEO of Fifth Third Bancorp comments, "Our relationship with Federated provides us an exciting opportunity to grow our business in an area where scale is increasingly important. This action reduces risk and moves us more closely to trusted advisor status by being able to offer clients a broader choice of investment products. We look forward to working with Federated and leveraging our distribution platform to provide value to shareholders."
The release adds, "Closing of the transaction is subject to certain conditions and approvals and is expected to be completed in the third quarter of 2012. Cambridge International Partners Inc. is advising Fifth Third on the transaction." Fifth Third, currently the 34th largest money fund manager with $5.07 billion, had previously outsourced its Municipal money market funds to Federated back in 2008 (see Money Fund Intelligence Sept. 2008).
