Federated Investors of Pittsburgh will purchase the mutual fund assets of Investment Advisors of Minneapolis for an undisclosed price, Federated has announced. Federated will assume the investment management, distribution and shareholder servicing responsibilities for 11 funds totaling $400 million in assets. The merger is expected to be completed by September.
All of the IAI funds will be merged into existing Federated equity, fixed-income and money market funds, according to Federated. Small, directly-marketed fund families such as IAI are now at a competitive disadvantage, said J. Peter Thompson, chairman of the board of IAI Mutual Funds.