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Federated to manage $5B in assets for Fifth Third

CINCINNATI (AP) -- Federated Investors will take over management of about $5 billion in money market assets from Fifth Third Bancorp, the company said Thursday.

Federated said it will roll the assets from four money market funds into four existing Federated money market funds with similar investment objectives. Money market funds are mutual funds that invest in high-quality, short-term debt.

The transaction is subject to certain conditions and approvals and is expected to be completed in the third quarter.

The agreement is not expected to have a material impact on Fifth Third's earnings results, according to Federated Investors Inc.

Fifth Third CEO Kevin Kabat said the transaction will allow it to reduce risk and grow its business in an area where large scale is increasingly important.