Federated Investors to acquire certain investment assets from PNC Financial.

Federated Investors (FII) and The PNC Financial Services Group (PNC) announced that they have reached a definitive agreement for Federated to acquire certain components of PNC Capital Advisors LLC's investment-management business. The proposed transaction includes the reorganization of PNC's family of liquidity, equity and fixed-income mutual funds into corresponding Federated mutual funds, the acquisition of a portion of PNC's separate account and separately managed account business, and the transition of a six-person international equity management team from PNC to Federated. Through the agreement, approximately $9B in assets from three PNC government and treasury money market funds is expected to be transitioned through mutual fund reorganizations. Further, approximately $2.7B in equity mutual fund assets and $700M in fixed-income mutual fund assets would be reorganized from an additional 15 PNC funds into 10 existing and three newly created Federated funds. The existing Federated mutual funds have comparable investment strategies. Federated expects to transition three of PNC's fundamentally driven international equity mutual funds into new Federated shell portfolios created for the purpose of continuing the investment operations and performance records of each mutual fund as part of the Federated complex. The PNC team of portfolio managers and analysts responsible for the strong leadership of these international equity funds has agreed to join Federated and will continue managing the funds. The Cleveland-based team, led by Martin Schulz as senior vice president and head of the international growth team, averages 13 years of industry experience and more than eight years working together. Post-closing, PCA will manage approximately $21B of custom liquidity and fixed-income solutions to address the needs of PNC's corporate and institutional clients, including corporations, healthcare organizations, insurance companies, unions, higher education, government entities and endowment, and foundations. The employees of PNC's liquidity and taxable fixed-income teams will remain with PCA, focused on managing separate accounts. PNC's Institutional Advisory Business will continue to manage $26B of OCIO assets on behalf of corporate and institutional clients. The transaction is expected to close in the fourth quarter. Federated will pay PNC an estimated total purchase price of $52M when the transaction is completed. The transaction has been approved by the Board of Directors of Federated Investors.