Kaufmann Consolidates Mutual Funds

January 28, 2002 (PLANSPONSOR.com) - Because two of its funds are faring poorly, mutual fund firm Federated Investors is folding the funds' assets into the Kaufmann Fund, Federated announced.

Federated said it will take the roughly $242.3 million from its Federated Kaufmann Small Cap Fund and the $217.5 million from the Federated Aggressive Fund and put it all in the Kaufman Fund, which now manages $3.6 billion in assets, according to Reuters.

Federated’s Small Cap fund fell 6.1% in 2001 following a 27.8% decline a year earlier, while the Aggressive Growth fund slid 17.1% in 2001 on top of a 51% plunge in 2000, according to data from Morningstar.

Shareholders will get a chance to vote on the current merger proposal in April, according to Federated.

The company said the smaller funds have investment objectives similar to those of the Kaufmann Fund, which was added to Federated’s stable of portfolios after the acquisition of its investment adviser in April 2001.

Pittsburgh-based Federated manages about $163.6 billion.