Update: Federated to Fold Asia Fund

Sept. 6, 2002 -- The Federated Asia Pacific Growth Fund/A (APCAX) and the Federated Emerging Markets Fund/A (EMMAX) are slated to be merged out of existence because they lack assets.

Federated Investors is seeking shareholder approval to combine the funds with the Federated International Capital Appreciation Fund, formerly called the Federated International Growth/A (IGFAX).

The Asia Pacific Growth fund, which invests in developed and developing countries, and the Emerging Markets fund have had "difficulty in growing" their assets, Federated said in regulatory filings. The funds' relatively small size and high expenses have raised concerns about their "long-term viability," Federated added.

The Asia Pacific Growth fund currently has total assets of about $9.2 million, the Emerging Markets fund has about $80.4 million, and the International Capital Appreciation fund about $28 million, the fund complex said.

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