Federated Enhanced Treasury Income Fund Announces Extension of Share
Repurchase Program and Approval of New Managed Distribution Plan
PITTSBURGH, Feb. 21, 2013
PITTSBURGH, Feb. 21, 2013 /PRNewswire/ --Federated Enhanced Treasury Income
Fund (NYSE: FTT) today announced that its Board of Trustees authorized the
extension of the share repurchase program and approved a new managed
distribution plan (MDP).
The extension of the share repurchase program begins on March 1, 2013 and will
run for another year. The program will allow the fund to buy back up to 5% of
its outstanding common shares as of Dec. 31, 2012, or 459,352 shares, in the
open market. The amount and timing of share purchases will be subject to
market conditions and investment considerations. The fund completed its
purchase of all of the 478,446 shares that were authorized to be purchased
under the initial share repurchase program that began on March 1, 2012.
Under the new MDP, the fund will make monthly cash distributions approximating
4.0% of the fund's net asset value (NAV) on an annualized basis. The fund may
make distributions in excess of those required under the plan in order to meet
its obligations under the Internal Revenue Code. The distribution will be
based on the NAV of the fund on the last business day of the previous month.
The new MDP will be implemented on March 1, 2013.
The fund's distributions under the MDP may include net investment income, net
realized long-term capital gains, net realized short-term capital gains and
return of capital. If a distribution does not consist solely of net
investment income, a notice with the estimated components of the distribution
will be provided to shareholders at the time of payment and posted to the
fund's website at FederatedInvestors.com. Investors should use the Form
1099-DIV sent after calendar year end, and not the notice, to prepare tax
returns. Investors should not draw any conclusions about the fund's past or
future investment performance from the amount of this distribution or from the
terms of the fund's MDP.
The fund's Board of Trustees and investment adviser analyzed options to
enhance shareholder value and potentially reduce the discount between the
market price of the fund's common shares and their net asset value per share
(NAV). The investment adviser believes the extension of the share repurchase
program will continue to allow the fund to purchase its shares at a discount
to NAV, which will increase the NAV and thereby benefit remaining
shareholders. The Board of Trustees will monitor the program and will
continue to consider strategic options to enhance shareholder value over the
There is no assurance that the fund will purchase shares at any specific
discount levels or in any specific amounts. The fund's repurchase activity
will be disclosed in its shareholder report for the relevant fiscal period.
There is no assurance that the market price of the fund's shares, either
absolutely or relative to its NAV, will increase as a result of any share
Federated Investors, Inc. (NYSE: FII) is one of the largest investment
managers in the United States, managing $379.8 billion in assets as of Dec 31,
2012. With 137 funds, as well as a variety of separately managed account
options, Federated provides comprehensive investment management worldwide to
approximately 4,700 institutions and intermediaries including corporations,
government entities, insurance companies, foundations and endowments, banks
and broker/dealers. For more information, visit FederatedInvestors.com.
Certain statements made in this press release are forward-looking statements.
Actual future results or occurrences may differ significantly from those
anticipated in any forward-looking statements due to numerous factors. These
include, but are not limited to: market developments; legal and regulatory
developments; and other additional risks and uncertainties. As a result,
neither the company nor any other person assumes responsibility for the
accuracy and completeness of such statements in the future.
SOURCE Federated Investors, Inc.
Contact: MEDIA: Meghan McAndrew, +1-412-288-8103; or Melissa Ryan,
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