Mutual fund giant Federated Investors has inked a deal to buy the mutual fund assets of Washington-based banking firm Riggs National in a move that would boost Federated's total assets by about $470 million.
Pending approval by 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, Federated's president and chief executive, in a statement.
A majority of Riggs' fund assets are invested in money market funds. While the remaining portion is in equity and fixed-income portfolios, Federated, which currently manages about $196 billion in assets, is heavily weighted in conservative money market accounts.
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