Federated Investors is acquiring the assets of three Horizon Advisers mutual funds, confirmed Joe Machi, senior vice president and director of alliances at Federated.
While the Hancock Horizon Funds will continue to offer a range of equity, fixed-income and alternative mutual funds, approximately $431 million in one fixed-income and two equity funds will move to Federated funds with comparable investment objectives and strategies.
As part of the agreement, about $144 million will be transitioned to the Federated MDT Stock Trust from the Hancock Horizon Value Fund; $131 million to the Federated Kaufmann Large Cap Fund from the Hancock Horizon Growth Fund; and $156 million to the Federated Total Return Bond Fund from the Hancock Horizon Core Bond Fund.
Terms of the deal were not disclosed.
Horizon Advisers is an unincorporated division of Whitney Bank, which is a subsidiary of Hancock Holding Co. Horizon Advisers serves as investment adviser to the Hancock Horizon Funds.
Mr. Machi said in a telephone interview that Hancock Holding approached Federated with this deal because they’ve been a customer of Federated’s for more than 10 years.
“They have 13 funds and made the decision to exit three of them. Because of our long-term relationship with them, they came to us,” Mr. Machi said.
David Lundgren, chief investment officer for Horizon Advisers, said in a news release announcing the deal: “Horizon Advisers remains committed to our remaining 10 Hancock Horizon mutual fund strategies. Our focus will continue to be on niche asset classes where we feel our Hancock Horizon Funds provide great value to our shareholders.”
The boards of Federated Investors, the Federated Funds and the Hancock Horizon Funds have approved the transactions and related reorganizations, which are now subject to the approval of shareholders of the Hancock Horizon Funds.
The Hancock Horizon shareholder meetings to approve the transitions are tentatively scheduled for late January. The transactions are expected to be completed shortly thereafter.
Federated Investors managed $364.3 billion in assets as of Sept. 30.