Earlier this summer came word that Fifth Third Bank was reviewing options for its asset management arm (see The MFWire, July 23, 2008). Now, a result of that review has come to light: Fifth Third Asset Management is getting out of the municipal bond fund business.

Fifth Third struck a deal with Federated Investors under which the latter will acquire the assets of six Fifth Third funds and move them into five existing Federated funds, according to SEC filings.

Collectively, the six Fifth Third funds hold about $1 billion of assets.

Representatives for Fifth Third and Federated were not immediately able to comment.

The funds' shareholders will vote on the proposed reorganization at a special meeting in November.

The Fifth Third deal marks Federated's 13th transaction in the last five years. Most of those transactions are product rollups, similar to the Fifth Third agreement. Others, like the Prudent Bear deal (see The MFWire, July 15, 2008), involved the acquisition of assets plus personnel. 

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