A press release entitled, "Federated Investors' Ohio Municipal Cash Trust to Acquire $91 Million in Assets from Touchstone Ohio Tax-Free Money Market Fund," says, "Federated Investors, Inc., one of the nation's largest investment managers, and Touchstone Advisors, Inc., have reached a definitive agreement regarding the acquisition by Federated of certain assets relating to Touchstone's management of the Touchstone Ohio Tax-Free Money Market Fund, a series of Touchstone Tax-Free Trust. In connection with the acquisition, approximately $91 million in tax-free money market assets will be reorganized from the Touchstone Ohio Tax-Free Money Market Fund into Federated Ohio Municipal Cash Trust, a portfolio with a similar investment objective. Established in 1990, Federated Ohio Municipal Cash Trust has approximately $391 million in net assets and is a portfolio of the Federated Money Market Obligations Trust, which has approximately $184 billion in aggregate net assets. With approximately $19 billion in tax-free, state-specific money market assets under management, Federated offers more tax-free state money market products than any other investment manager. "Federated's experience in handling these types of transactions and our commitment to providing a variety of liquidity-management solutions for our clients provide an ideal opportunity for the shareholders of the Touchstone fund to transition to Federated," said Joe Machi, director of alliances at Federated. "As a leading provider of cash management services, Federated regularly works with organizations of many types and sizes as they evaluate their liquidity-management needs, and we continue to seek opportunities for mutually beneficial transactions." It continues, "In light of the changing regulatory landscape with respect to money market funds, we sought a party that had a commitment to the money market fund business. Federated offers shareholders of the Touchstone Ohio Tax-Free Money Market Fund the opportunity to continue their investments in a larger fund with comparable investment objectives, investment strategies, tax benefits, expenses and performance," said Steve Graziano, president of Touchstone Investments. The reorganization is expected to be tax-free and is anticipated to be completed in the second quarter of 2015. Closing of the transaction is subject to shareholder approval and certain other contingencies." In our March 5 "News", we reported, "Touchstone Rescinds Liquidations, Moves to Dreyfus, saying Touchstone was transitioning three of its money funds to Dreyfus. SEC filings said a fourth, Touchstone's Ohio Tax free MMF would be reorganized "into a comparable money market fund advised by a third-party investment manager (the "Acquiring Fund"). The Acquiring Fund would have a similar investment objective and expenses to those of the Fund." In other news, the New York Fed updated its "Reverse Repo Counterparties List," removing the Reich & Tang Daily Income Fund, which is being liquidated and possibly moved to Federated. (See our March 17 News, "Federated In Talks with Reich & Tang Over MMF Assets.")
