Federated Investors Try to Reassure

Federated Investors, Inc. (NYSE:FII) provides an update on the money market funds the firm manages.

In light of recent market conditions, Federated wants to assure its fund shareholders and clients that the firm's money market funds continue to be high-quality investment products designed for use by fiduciaries and other investors who have stringent requirements for safety and daily liquidity at par. While money market funds are not guaranteed, Federated remains confident in its ability to maintain a $1.00* net asset value (NAV) across the money market franchise as the firm has done for over thirty years.
Federated will continue to manage money market funds with an unrelenting focus on credit analysis, high credit standards and maintenance of minimal credit risk. To this end, Federated uses an internal, proprietary credit analysis process and has its own ratings function. The firm has developed its own sophisticated systems and technological tools to assist its credit analysts in performing these vital functions.

Please note the following regarding Federated's money market funds: Federated's money market funds have no exposure to Lehman Brothers Holdings, Inc., American International Group, Inc. or Washington Mutual.