Federated Investors has inked an agreement to acquire the assets of Tributary International Equity Fund from Omaha, Nebraska-based Tributary Capital Management [SEC filing]

The Tributary fund has AUM of $103.8 million, according to Morningstar. If fund shareholders give their greenlight at a meeting on July 20, the fund's assets will be transferred to the Federated International Leaders Fund, which currently has $393 million of AUM.

"The Reorganization is being proposed to shareholders of the Tributary Fund because it would offer them, among other things, (1) a fund with lower total annual operating expenses; (2) a fund with consistent and strong historical performance in the short- and long-term; (3) high-quality investment management and related services from Federated and its affiliates; and (4) a fund with broader distribution capacity," Tributary officials said in the SEC filing.

For its part, Federated did the deal because "it increases the size of the fund and offers the potential for greater efficiencies and investment opportunities," company spokesman Ed Costello told The MFWire.com.  

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