Thursday, April 03, 2008
Federated Launches a Large Cap Quant Fund
News summary by MFWire's editors
has launched the Federated MDT Large Cap Value Fund
, a quantitative fund offering. Pittsburgh-based Federated is selling A, C, IS and K share classes through b-ds and other intermediaries.
Federated acquired Cambridge-based quant shop MDT Advisers in the summer of 2006.
Company Press Release
PITTSBURGH, April 3, 2008 /PRNewswire-FirstCall/ -- Federated Investors, Inc. (NYSE: FII - News), one of the nation's largest investment managers, announced the launch of the Federated MDT Large Cap Value Fund, a quantitative equity fund that seeks to provide long-term capital appreciation by investing in the securities of large U.S. companies.
Federated MDT Large Cap Value Fund, which invests in large capitalization stocks and has the Russell 1000 Value Index as its primary benchmark, extends MDT's quantitative decision-making style to the large cap value universe. MDT Advisers' proprietary Optimum Q process uses a disciplined, bottom-up, fundamentally based portfolio selection process that integrates precision stock selection with trading-cost control and risk control. Federated acquired the Boston-based MDT Advisers in 2006.
The fund is managed by a team of quantitative analysts -- led by David Goldsmith, chief investment officer -- who have managed seven other MDT equity funds and the equity portion of the Federated MDT Balanced Fund since their inception.
"In any market environment, the Federated MDT portfolios offer investors a dispassionate, highly disciplined quantitative investment approach," said John B. Fisher, president and CEO of Federated's advisory companies. "We are pleased with the performance the MDT team has achieved through all of their portfolios, and we're happy to extend MDT's process of quality stock selection to the large cap value category."
Federated will market Federated MDT Large Cap Value Fund in A, C, IS and K share classes through brokers/dealers, bank broker/dealers and other financial intermediaries. A minimum investment of $1,500 is required for A and C share classes with subsequent investments of $100. A minimum investment of $25,000 is required for IS shares. For A, C, IS and K shares there is no minimum investment for retirement plans; for IRA plans there is a $250 minimum initial investment and a $100 subsequent investment.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $301.6 billion in assets as of Dec. 31, 2007. With 148 mutual funds and various separately managed accounts, Federated provides comprehensive investment management worldwide to more than 5,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.
Certain statements in this press release, such as those related to the successful launching, management, growth and results of the new Federated MDT Large Cap Value Fund, constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Among other risks are the ability to successfully sell and manage the new fund or to achieve solid investment results, as well as the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. Many of these factors may be impacted as a result of the ongoing threat of terrorism. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
For more complete information, visit http://FederatedInvestors.com or contact your investment professional for prospectuses. You should consider the fund's investment objectives, risks, charges and expenses carefully before you invest. Information about these and other important subjects is in the fund's prospectus, which you should read carefully before investing.
Armie Margaret Lee
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