PITTSBURGH, Oct. 12, 2015 /PRNewswire/ -- Federated
Investment Management Company, the investment adviser to Federated
Enhanced Treasury Income Fund (NYSE: FTT), announced that the
fund's shareholders today approved the fund's reorganization into a
newly created open-end mutual fund (FETIX). The
reorganization, approved at the fund's annual meeting of fund
shareholders, is currently scheduled for Friday, Oct. 23, 2015, subject to satisfaction of
certain closing conditions, and will result in FTT shareholders
becoming shareholders of FETIX.
To facilitate the transition from a closed-end fund to an
open-end fund, earlier that week, after the close on Oct. 20, 2015, fund common shares will cease
trading on the New York Stock Exchange. After that time,
holders of FTT common shares will not be able to sell their shares
on the stock exchange and their investment will be temporarily
illiquid. However, assuming the reorganization takes place on
Oct. 23, 2015, effective Monday, Oct. 26, 2015, the first business day
following the reorganization, FETIX shareholders may redeem their
shares at net asset value, subject to a 1 percent redemption fee
for the first six months after the date of the reorganization (or
until April 23, 2016).
The new fund, FETIX, invests primarily in U.S. Treasury
securities and U.S. Government Agency securities, combined with
call-option and duration management strategies, to provide income
and total return. The reorganization provides liquidity for
shareholders while also enabling them to continue investing in a
strategy that is substantially similar to FTT's investment
strategy. The Board of Trustees of FETIX is able to approve
liquidating the new open-end mutual fund without shareholder
approval if the Board of Trustees determines that it would be in
the best interests of shareholders to do so.
The foregoing does not constitute an offering of any securities
for sale. The combined prospectus/proxy statement relating to
the reorganization contains important information about the
reorganization and free copies may be obtained by calling the fund
at 1-800-341-7400 or at the SEC's website, www.sec.gov. A
registration statement relating to FETIX has been filed with the
Securities and Exchange Commission, but FETIX has not yet commenced
a continuous offering of its shares. Following the closing of
the reorganization, FETIX intends to commence a continuous offering
of its shares. Other than in the reorganization, shares of
FETIX may not be sold nor may offers to buy be accepted prior to
that time.
Federated Investors, Inc. (NYSE: FII) is one of the largest
investment managers in the United
States, managing $349.7
billion in assets as of June
30, 2015. With 130 funds and a variety of separately
managed account options, Federated provides comprehensive
investment management to more than 7,900 institutions and
intermediaries including corporations, government entities,
insurance companies, foundations and endowments, banks and
broker/dealers. For more information, visit
FederatedInvestors.com.
Certain statements made in this press release, such as those
related to the conversion of the fund and enhanced liquidity and
shareholder value, are forward-looking statements. Actual future
results or occurrences may differ significantly from those
anticipated in any forward-looking statements due to numerous
factors. These include, but are not limited to: market
developments; legal and regulatory developments; and other
additional risks and uncertainties. As a result, none of the
investment adviser, the fund or any other person assumes
responsibility for the accuracy and completeness of such statements
in the future.
Federated Securities Corp.
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SOURCE Federated Investors, Inc.