Florida State Board of Administration, Tallahassee, selected Federated Investors to manage up to $35.5 billion in short-term funds, including the $8.9 billion Local Government Investment Pool A and the estimated $2 billion LGIP Pool B, said Michael P. McCauley, director of investment services and communications. The hiring is pending contract negotiations, he said.
The board initiated the search to replace internal management in light of subprime-related problems. BlackRock had managed the pools in the interim; BlackRock and Bank of New York Mellon were the other finalists in the search.
