Federated Investors Inc., a Pittsburgh investment manager, announced a definitive agreement with Touchstone Advisors Inc. to buy two of its mutual funds.

The portfolios, the Touchstone Value Opportunities Fund and the Touchstone Diversified Small Cap Value Fund, had $233 million of assets under management at March 31, the companies said last week.

The $151 million of assets from the Touchstone Value Opportunities Fund would be combined with the Federated Clover Value Fund, and the $82 million of assets from the Touchstone Diversified Small Cap Value Fund would be merged with the Federated Clover Small Value Fund. Last year, Federated bought substantially all the assets of Clover Capital Management Inc., which had subadvised the Touchstone funds. Since then, Federated Clover Investment Advisers had subadvised the funds.

The boards of trustees of the Federated funds and the Touchstone funds have unanimously approved the sale, which is subject to shareholder approval. The companies said they expect the sale, the price of which was not disclosed, to close in August.

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