Federated to buy some Rochdale assets

Federated Investors Inc., a Pittsburgh-based money manager, today said it has agreed to acquire certain assets of Rochdale Investment Management LLC tied to the $321 million Rochdale Atlas Portfolio, a mutual fund investing in international stocks. As part of the agreement, assets of Rochdale Atlas Portfolio are expected to be transitioned into the new Federated InterContinental Fund, which will continue the investment operations of the Rochdale Atlas Portfolio, Federated and New York-based Rochdale said in a joint release. Also under the agreement, Federated will acquire Rochdale’s proprietary quantitative investment model used to manage the Rochdale Atlas Portfolio. The deal, expected to close in third quarter, includes an initial purchase payment of $5.75 million, according to a regulatory filing. Two additional contingent payments totaling up to $20 million could be paid in years three and five based on asset growth and fund performance. “The unique country-specific investment approach makes Rochdale Atlas Portfolio an ideal opportunity for Federated to expand our international equity product line,” Federated President and Chief Executive J. Christopher Donahue said in a statement. Current management team members, Audrey H. Kaplan and Geoffrey Pazzanese, will join Federated and serve as co-managers of the Federated InterContinental Fund, the release said.