Federated Investors, Inc. announced the launch of the federated managed volatility fund, a liquid alternative product that seeks to provide total return while managing the fund's annualized volatility. The fund joins Federated's $2 billion alternative and objective-based product line, which includes Federated Absolute Return Fund, Federated Managed Risk Fund and Federated Prudent Bear Fund. Federated Managed Volatility Fund is managed by a team of portfolio managers led by Michael T. Dieschbourg, who heads Federated's alternatives/managed-risk investment group.

The new product follows the growth of the $650 million Federated Managed Volatility Fund II, a variable annuity product which has been sold through insurance companies for three years and which has a similar investment objective and strategy. The new fund invests in equity and fixed-income securities that have potential for total return while managing volatility.