Federated Investors and Sentinel Asset Management have reached an agreement whereby Federated will acquire three of Sentinel's mutual funds, with $93 million in assets. Financial terms of the deal were not released.
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.