Federated Investors will assume management of several money market and fixed-income funds now managed by Lehman Brothers, the two companies announced Monday.
Terms of the deal were not disclosed.
Federated, based in Pittsburgh, is set to manage approximately $4 billion in institutional assets from six Lehman funds, including Lehman Brothers Government Obligations, Prime Value, Prime Money Market, Lehman Treasury Instruments II, Municipal Money Market, and Tax-Free Money Market.
Lehman also has agreed to fold $1 billion in retail assets from three of its funds - Daily Income, Municipal Income, and New York Municipal - into three similar Federated funds.
"We've been slowly getting out of the asset management business in some areas over the last 18 months," a Lehman spokesman said. "We want to provide the opportunity for our brokers to provide any number of outside managers, as opposed to internal ones."