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 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.
