PITTSBURGH, April 26, 2021 /PRNewswire/ -- Federated
Hermes, Inc. (NYSE: FHI), a global leader in active, responsible
investing, announced that it reached an agreement to acquire
certain investment management related assets of Horizon Advisers
and reorganize the portfolios of all nine Hancock Horizon mutual
funds into comparable Federated Hermes mutual funds. Through the
agreement, approximately $568
million1 in seven equity and two municipal bond
funds will transition to one new and six existing much larger
Federated Hermes mutual funds with comparable investment objectives
and strategies (see page 2 for a list of funds). Horizon Advisers,
an unincorporated division of Hancock Whitney Bank, serves as
investment advisor to the Hancock Horizon Funds.
A similar transaction was completed in 2017, when three Hancock
Horizon mutual funds were reorganized into comparable Federated
Hermes mutual funds. "Federated Hermes is experienced in managing
these types of transactions and has a history of providing
investment solutions for a variety of market conditions," said
Chief Investment Officer for Horizon Advisers David Lundgren. "We
at Hancock Advisers are confident in our selection of Federated
Hermes as a partner in this transaction, and their actively managed
funds serve as a sensible new home to these assets. We also believe
that as other shareholders of these nine funds learn about the
Federated Hermes mutual funds and focus on their own financial
goals and objectives, they will benefit from the opportunity to
access Federated Hermes' range of strategies."
The board of directors of Federated Hermes, Inc., the boards of
directors/trustees of the Federated Hermes Funds and the board of
trustees of the Hancock Horizon Funds have approved the transaction
and related reorganizations, which are now subject to the approval
by shareholders of the Hancock Horizon Funds. Completion of these
transactions also is subject to certain regulatory approvals and
other customary conditions. The Hancock Horizon shareholder
meetings to approve the transitions are tentatively scheduled for
September 2021, and the transactions
are expected to be completed shortly thereafter.
"Federated Hermes aims to provide solid product performance
through a range of compelling active, responsible investment
offerings and superior client service," said Joe Machi, director of alliances at Federated
Hermes. "As the investment management landscape evolves, firms
approach us about opportunities for business transactions that can
help them meet their firm's strategic goals and benefit their
shareholders, fund shareholders and clients. We continue to look
for opportunities with insurers, banks, broker-dealers and
investment advisors as they evaluate their long-term plans."
The agreement involves the following fund assets:
Hancock Horizon
funds
|
Net
assets
(in
millions)*
|
Federated Hermes
funds
|
Net
assets
(in
millions)*
|
Hancock Horizon
Burkenroad
Small Cap Fund
|
$140
|
Federated Hermes MDT
Small
Cap Core Fund
|
$951
|
Hancock Horizon
Diversified
Income Fund
|
$34
|
Federated Hermes
Capital
Income Fund
|
$1,000
|
Hancock Horizon
Diversified
International Fund
|
$230
|
Federated Hermes
International
Leaders Fund
|
$1,059
|
Hancock Horizon
Dynamic Asset
Allocation Fund
|
$20
|
Federated Hermes
Global
Allocation Fund
|
$405
|
Hancock Horizon
International
Small Cap Fund
|
$30
|
Federated Hermes
International
Small-Mid Company Fund
|
$169
|
Hancock Horizon
Louisiana Tax-
Free Income Fund
|
$6
|
Federated Hermes
Municipal
Bond Fund, Inc.
|
$323
|
Hancock Horizon
Microcap Fund
|
$14
|
Federated MDT Small
Cap Core
Fund
|
$951
|
Hancock Horizon
Mississippi Tax-
Free Income Fund
|
$12
|
Federated Hermes
Municipal
Bond Fund, Inc.
|
$323
|
Hancock Horizon
Quantitative
Long/Short Fund
|
$83
|
Federated Hermes MDT
Market
Neutral Fund
|
**
|
*As of March 31,
2021
** Federated Hermes MDT Market Neutral Fund is subject to
registration. Fund will not be offered until it is effective
and the reorganization is completed. The Federated Hermes MDT team
has managed the market neutral strategy in a private fund context
for more than 20 years.
|
Federated Hermes, Inc. is a leading global
investment manager with $619.4
billion in assets under management as of Dec. 31, 2020. Guided by our conviction that
responsible investing is the best way to create wealth over the
long term, our investment solutions span equity, fixed-income,
alternative/private markets, multi-asset and liquidity management
strategies. Providing world-class active investment management and
engagement services to more than 11,000 institutions and
intermediaries, our clients include corporations, government
entities, insurance companies, foundations and endowments, banks
and broker/dealers. Headquartered in Pittsburgh, Federated Hermes' more than 1,900
employees include those in London,
New York, Boston and offices worldwide. For more
information, visit FederatedHermes.com.
Horizon Advisers is an unincorporated division of
Hancock Whitney Bank (established 1899), which is a wholly owned
subsidiary of Hancock Whitney Corporation. Hancock Whitney Bank manages assets for institutional
and high net worth clients including pension plans, endowments,
foundations, government entities, corporations, trusts and estates.
For more information, visit hancockhorizon.com.
Certain statements in this press release, such as those related
to the structure of the transaction, asset transition levels,
future transaction prospects for Federated Hermes, the meeting or
closing dates of the transaction and performance objectives,
constitute forward-looking statements, which involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, levels of activity, performance or achievements of
the company, or industry results, to be materially different from
any future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. Other
risks and uncertainties include the possibility that Federated
Hermes does not successfully complete the acquisition or completes
the transaction in a manner or timetable different from that
described above, as well as the risk factors discussed in the
company's annual and quarterly reports as filed with the Securities
and Exchange Commission. As a result, no assurance can be given as
to future results, levels of activity, performance or achievements,
and neither the company nor any other person assumes responsibility
for the accuracy and completeness of such statements in the
future.
Federated Securities Corp. is distributor of the Federated
Hermes funds.
Investors should carefully consider each fund's investment
objectives, risks, charges and expenses before investing. To obtain
a summary prospectus or prospectus containing this and other
information, contact Federated Hermes or view the prospectus
provided at FederatedInvestors.com. Please carefully read the
summary prospectus or prospectus before investing.
A prospectus/proxy statement with respect to the proposed
transaction will be mailed to shareholders of the Hancock Horizon
Funds and filed with the Securities and Exchange Commission (SEC).
The SEC has not approved or disapproved these fund securities or
passed upon the adequacy of the fund's prospectus/proxy
statement. Any representation to the contrary is a criminal
offense. Additional information regarding the interests of
participants in the solicitation of proxies in connection with the
proposed fund prospectus/proxy statement will be included in, or
incorporated into, the prospectus/proxy statement that the funds
intend to file with the SEC. The foregoing does not constitute an
offering of any securities for sale. This press release mentions
certain reorganization, which, if approved by fund shareholders,
would be conducted pursuant to an agreement and plan of
reorganization. The prospectus/proxy statement will constitute
neither an offer to sell securities, nor will it constitute a
solicitation of an offer to buy securities, in any state where such
offer or sale is not permitted.
Investors are urged to read the prospectus/proxy statement
because it contains important information. The prospectus/proxy
statement and other relevant documents will be available free of
charge on the SEC's Web site at www.sec.gov or by
calling 1-800-341-7400.
1As of March 31,
2021
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SOURCE Federated Hermes, Inc.