Continuing its strategy of growth through acquisition, Federated Investors announced today that it is acquiring $164 million in assets held in three funds offered by Lincoln Investment Planning, a broker/dealer headquartered in Wyncote, Pa., and advised by Rightime Econometrics of Rydal, Pa.
Under the terms of the agreement, Federateds Capital Appreciation Fund will absorb all of the assets of the Rightime Blue Chip Fund, Rightime Fund and the Rightime Mid-Cap Fund. The deal will boost the Capital Appreciation Funds assets from $943 million to $1.1 billion. The financial details of the deal were not disclosed.
This is the third acquisition Federated has made in a little over a year. In April, Federated picked up the Kaufman Fund, which held $3.2 billion in assets at the time of the acquisition. And Sept. 18, 2000, the company acquired 11 funds from Investment Advisers Inc. with a total of $346 million in assets. Those funds were merged with existing Federated funds.
"One of our growth strategies is acquisitions," said Anne Cumberledge, a Federated spokeswoman. While Federated has no immediate plans to acquire other funds, "were always looking," she said.
With the sale of the three funds, Rightime will exit the retail fund business to focus its management capabilities on institutional separate accounts.