PITTSBURGH, Feb. 13, 2015 /PRNewswire/ -- Federated
Enhanced Treasury Income Fund (NYSE: FTT) today announced that its
Board of Trustees authorized the extension of its share repurchase
program and approved a new managed distribution plan
(MDP).
The extension of the share repurchase program begins on
March 1, 2015 and will run for
another year. The program will allow the fund to buy back up
to 5 percent of its outstanding common shares as of Dec. 31, 2014, or 429,618 shares, in the open
market. The amount and timing of share purchases will be
subject to market conditions and investment considerations.
The fund purchased 98,836 shares under the initial share repurchase
program that began on March 1,
2014.
Under the new MDP, the fund will make monthly cash distributions
approximating 2.5 percent of the fund's net asset value (NAV) on an
annualized basis. The fund may make distributions in excess
of those required under the plan in order to meet its obligations
under the Internal Revenue Code. The distribution will be
based on the NAV of the fund on the last business day of the
previous month. The new MDP will be implemented on
March 1, 2015.
The fund's distributions under the MDP may include net
investment income, net realized long-term capital gains, net
realized short-term capital gains and return of capital. If a
distribution does not consist solely of net investment income, a
notice with the estimated components of the distribution will be
provided to shareholders at the time of payment and posted to the
fund's website at FederatedInvestors.com. Investors should
use the Form 1099-DIV sent after calendar year end, and not the
notice, to prepare tax returns. Investors should not draw any
conclusions about the fund's past or future investment performance
from the amount of this distribution or from the terms of the
fund's MDP.
On a regular basis, the fund's Board of Trustees and investment
adviser analyze options to enhance shareholder value and
potentially reduce the discount between the market price of the
fund's common shares and their net asset value per share
(NAV). The investment adviser believes the extension of the
share repurchase program will continue to allow the fund to
purchase its shares at a discount to NAV and thereby benefit
shareholders. The Board of Trustees will monitor the program
and will continue to consider strategic options to enhance
shareholder value over the long-term.
There is no assurance that the fund will purchase shares at any
specific discount levels or in any specific amounts. The
fund's repurchase activity will be disclosed in its shareholder
report for the relevant fiscal period. There is no assurance
that the market price of the fund's shares, either absolutely or
relative to its NAV, will increase as a result of any share
repurchases.
Federated Investors, Inc. (NYSE: FII) is one of the largest
investment managers in the United
States, managing $362.9
billion in assets as of Dec.
31, 2014. With 131 funds, as well as a variety of
separately managed account options, Federated provides
comprehensive investment management worldwide to more than 7,700
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 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, neither the fund nor any other
person assumes responsibility for the accuracy and completeness of
such statements in the future.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/federated-enhanced-treasury-income-fund-announces-extension-of-share-repurchase-program-and-approval-of-new-managed-distribution-plan-300035847.html
SOURCE Federated Investors, Inc.