Federated's New York Municipal Income Fund, Pennsylvania Municipal Income Fund and Municipal Securities Fund will, respectively, absorb Sentinel's New York Tax-Free Income Fund, Pennsylvania Tax-Free Income Fund and Tax-Free Income Fund.
"The board recommended Federated because the Sentinel municipal bond fund shareholders will benefit from the scale and depth of Federated's tax-exempt management capabilities," said Sentinel President and Chief Executive Officer Christian W. Thwaites.
The boards of the funds have approved the transaction, which now must be endorsed by shareholders at a meeting scheduled for October.