Mutual fund giant Federated Investors inked a deal Friday to buy the mutual fund assets of Washington-based banking firm Riggs National in a move that would boost Federateds total assets by about $470 million.
Pending approval of Riggs shareholders, Riggs eight mutual funds would be merged into eight existing portfolios run by Federated. The financial terms of the deal were not disclosed, however.
"Federated will continue to pursue growth through other bank fund asset transactions as we're witnessing a strong trend toward these opportunities," said J. Christopher Donahue, Federateds president and chief executive, in a press release.
A majority of Riggs fund assets are invested in money market funds; while the remaining portion are in equity and fixed-income portfolios. Pittsburgh-based Federated, which currently manages about $196 billion in assets, is heavily weighted in conservative money market accounts.
Riggs fund shareholders are expected to vote on the merger at a meeting in September, the companies said.