The shakeout in the fund business continues. Rightime funds, the family sponsored by Lincoln Investment Planning of Wyncote, Pennsylvania is the latest to be gobbled by a larger firm with broader distribution. This time the acquiror is Federated Investors of Pittsburgh. Terms of the deal were not disclosed.

Federated will take over $164 million of assets in The Rightime Fund, The Rightime Blue Chip Fund and The Rightime MidCap Fund. Those assets will be rolled into the $943 million Federated Capital Appreciation Fund. The funds are now advised by and Rightime Econometrics. Shareholders will vote on the deal in December.

The deal will add to the equity assets under management for Federated. The firm has the bulk of its assets in money market funds.

"Rightime shareholders will benefit as they become shareholders of Federated Capital Appreciation Fund, a flagship blend fund that has consistently outperformed the S&P 500 Index in the past 1, 3, 5 and 10 year periods," J. Christopher Donahue, president and chief executive officer of Federated Investors said. "Federated is committed to developing a valuable strategic partnership with Lincoln's 300+ financial intermediary force, and has the outstanding operating capabilities, excellent customer service and competitive investment performance history to develop similar partnerships with other firms in the future."

"Given the size and similar investment objective of Federated Capital Appreciation Fund, this transaction should be very positive for the Rightime shareholders," Edward Forst Sr., chairman of the board of Lincoln Investment Planning said. "With its broad product line, Federated is well positioned to provide the high-quality investment management and related services our shareholders deserve." 

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