As part of its efforts to strengthen its global presence,
Federated Investors Inc.
) has entered into an agreement with London-based Bury Street
Capital to expand its European distribution. Mainly, Bury Street
Capital will emphasize on the distribution of current and new
Federated UCITS (Undertakings for Collective Investment in
Transferable Securities) products that are focused on income
FEDERATED INVST (FII): Free Stock Analysis
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As per the agreement terms, Bury Street Capital, whose clientele
includes top rated global pension funds and wealth managers across
Europe, will engage itself in marketing and distributing three
fixed-income strategies with new share classes, which are
anticipated to be launched in the fourth quarter, subject to the
nod from the Central Bank of Ireland.
The funds include Federated Emerging Markets Global Debt Fund,
Federated U.S. Total Return Bond Fund and Federated High Income
Advantage Fund. Moreover, the marketing and distribution of the
Federated Strategic Value Equity Fund, a U.S. dollar-denominated
dividend UCITS fund, will also be managed by Buy Street Capital.
This particular tie up with Buy Street Capital will help Federated
in complementing and broadening its existing distribution platform
in Europe. Federated's operations in Europe dates back to over 20
With the assistance of the Pan-European distribution experience of
Bury Street Capital, the agreement offers opportunities to explore
new markets for Federated and escalates its UCITS managed assets.
As a matter of fact, with European Union's pension system shifting
to defined-contribution plans from the defined-benefit one, the
UCITS market is projected to substantially get bigger, thus
offering Federated an opportunity to bolster its top line.
One of the largest investment managers in U.S., Federated, which
manages $355.9 billion in assets as of June 30, 2012, has the
potential for significant growth in the long run, given its fairly
liquid balance sheet and a diversified asset as well as product
It continues to look for more opportunities to crack profitable
deals and is on track to expand globally. In September 2012,
Federated acquired $4.4 billion worth money market assets from
Fifth Third Asset Management Inc. (FTAM), the asset management
Fifth Third Bancorp
Notably, in April 2012, Federated expanded its operations by
acquiring London-based Prime Rate Capital Management, LLP from
Matrix Group Limited, a provider of institutional liquidity and
fixed-income products. The acquisition solidified Federated's
European presence with U.K.-domiciled UCITS products.
Moreover, investors' increased demand for the company's wide range
of income-oriented products will help it to boost profitability
despite persistent regulatory pressures and slow global economic
Federated currently retains its Zacks #3 Rank, which translates
into a short-term Hold rating.