Federated Investors will consolidate its three investment management units into two newly formed groups that will oversee equity and fixed-income portfolios.
Since 1995, Federated has managed its portfolios via three units: a domestic equity group, a domestic fixed-income group and an international/global investment group.
Now the firm will use only two units to do the job. The firm's new global equity unit will oversee domestic and international equity mutual funds, as well as separate and managed accounts. Federated's new global fixed income unit will oversee domestic and international fixed-income, high-yield products as well as fixed-income separate and managed account portfolios.
Federated CEO Keith Schappert said in a statement that the reorganization is intended to help investment teams share information with each other more seamlessly and provide "greater consistency with [the firm's] investment performance and strategy across [its] equity and fixed-income units."
Stephen Auth will serve as chief investment officer of the $20.9 billion global equity unit consisting of 60 staff members. Auth, who has worked for Federated since May of 2000, previously directed the management of all of Federated's international equity and bond portfolios.
In addition, Federated said it has hired James Gordon, Jr., J.P. Morgan Investment Management's former head of quantity research in U.S. equities, to provide quantitative analysis for the global equity unit. He will report to Auth.
William Dawson, who has spent 27 years at Federated, will serve as CIO of the global fixed income unit. He served most recently as executive VP and CIO of domestic fixed-income funds.