Benzinga | Apr 26, 2021 05:18PM EDT

Federated Hermes Reports Deal With Horizon Advisers To Transition ~$568M In Equity, Fixed-Income Fund Assets

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:

Net assets Net assets Hancock Horizon funds (in millions)&Federated Hermes funds(in millions)& #x2A; #x2A;

Hancock Horizon Federated Hermes MDT Burkenroad $140 Small $951 Small Cap Fund Cap Core Fund

Hancock Horizon Federated Hermes Diversified $34 Capital $1,000 Income Fund Income Fund

Hancock Horizon Federated Hermes Diversified $230 International $1,059 International Fund Leaders Fund

Hancock Horizon Dynamic Federated Hermes Asset $20 Global $405 Allocation Fund Allocation Fund

Hancock Horizon Federated Hermes International $30 International $169 Small Cap Fund Small-Mid Company Fund

Hancock Horizon Federated Hermes Louisiana Tax- $6 Municipal $323 Free Income Fund Bond Fund, Inc.

Hancock Horizon Microcap Federated MDT Small Fund $14 Cap Core $951 Fund

Hancock Horizon Federated Hermes Mississippi Tax- $12 Municipal $323 Free Income Fund Bond Fund, Inc.

Hancock Horizon $83 Federated Hermes MDT Quantitative Market ** Long/Short Fund Neutral Fund

*As of March 31, 2021** Federated Hermes MDT Market Neutral Fund is subject toregistration. Fund will not be offered until it is effective and thereorganization is completed. The Federated Hermes MDT team has managed themarket neutral strategy in a private fund context for more than 20 years.