Federated, Riggs Unveil $470 Million Fund Asset Deal

July 18, 2003 (PLANSPONSOR.com) - Federal Investors Inc., announced that it was buying about $470 million in mutual fund assets now in eight Riggs National Corp. funds that it would transfer to a like number of its own funds.

According to a news release, the planned transitions are subject to the approval of Riggs Fund shareholders. It is anticipated that the Riggs Fund shareholder meeting to approve these transactions will be held in September 2003. The boards of directors of the Federated Funds and the Riggs Funds have already approved the deal, the terms of which were not disclosed.

The announcement said that the Riggs asset breakdown as of July 16, is as follows: $47.5 million in two domestic equity funds, $127.9 million in four fixed-income funds and $294.2 million in two money market funds.

Voting separately by fund, shareholders will be asked to approve the following transfers:

  • Riggs Stock to Federated Capital Appreciation-A
  • Riggs Small Company Stock to Federated Kaufmann Fund-A
  • Riggs US Government Securities to Federated Total Return Govt. Bond-SS
  • Riggs Bond to Federated Total Return Bond-SS
  • Riggs Short Tax Free Bond to Federated Short Muni Trust-SS
  • Riggs Intermediate Tax Free Bond to Federated Intermediate Muni Trust-IS
  • Riggs Prime Money Market Fund to Federated Automated Cash Management Trust-SS
  • Riggs US Treasury Money Market to Federated Automated Government Trust