Federated Investors, Inc. Reports Third Quarter 2015 Earnings

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- Earnings per share increases 17 percent to $0.42 per share compared to Q3 2014 - Net equity sales positive for eighth consecutive quarter - Board declares $0.25 per share dividend

October 22, 2015 4:16 PM EDT

PITTSBURGH, Oct. 22, 2015 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.42 for Q3 2015, up 17 percent from $0.36 for the same quarter last year on net income of $44.1 million for Q3 2015, compared to $37.6 million for Q3 2014.  Federated reported YTD 2015 EPS of $1.17 compared to $1.05 for the same period in 2014 and YTD 2015 net income of $122.2 million compared to $109.6 million for the same period last year.

Federated's total managed assets were $351.0 billion at Sept. 30, 2015.  Total managed assets were down $1.3 billion from $352.3 billion at Sept. 30, 2014 and up $1.3 billion from $349.7 billion at June 30, 2015.  Growth in money market assets was offset by lower equity and fixed-income assets in Q3 2015 compared to Q2 2015.  Average managed assets for Q3 2015 were $351.9 billion, up $2.7 billion or 1 percent from $349.2 billion reported for Q3 2014 and up $3.3 billion or 1 percent from $348.6 billion reported for Q2 2015.

"Federated again saw positive net equity sales in the third quarter, as investors continued to seek alpha from a range of our historically strong-performing Federated products, including our Kaufmann growth strategies and the Federated International Leaders Fund," said J. Christopher Donahue, president and chief executive officer.  "Additionally, as investors navigated volatile markets, we saw renewed interest in alternative strategies, such as the Federated Prudent Bear and Absolute Return funds."

Federated's board of directors declared a dividend of $0.25 per share.  The dividend is payable on Nov. 13, 2015 to shareholders of record as of Nov. 6, 2015.  During Q3 2015, Federated purchased 539,805 shares of Federated class B common stock for $16.4 million.

Federated's equity assets were $52.0 billion at Sept. 30, 2015, up $1.7 billion or 3 percent from $50.3 billion at Sept. 30, 2014 and down $2.8 billion or 5 percent from $54.8 billion at June 30, 2015.  Top-selling equity funds during Q3 2015 on a net basis were Federated Kaufmann Large Cap Fund, Federated International Leaders Fund, Federated Kaufmann Small Cap Fund, Federated Prudent Bear Fund and Federated MDT Stock Trust.

Federated's fixed-income assets were $52.1 billion at Sept. 30, 2015, up $0.9 billion or 2 percent from $51.2 billion at Sept. 30, 2014 and down $0.8 billion or 2 percent from $52.9 billion at June 30, 2015.  Top-selling fixed-income funds during Q3 2015 on a net basis were Capital Preservation Fund, Federated Sterling Cash Plus Fund, Federated Floating Rate Strategic Income Fund, Federated U.S. Government Securities Fund: 2-5 Years and Federated Ultrashort Bond Fund.

Money market assets were $246.9 billion at Sept. 30, 2015, up $1.4 billion or 1 percent from $245.5 billion at Sept. 30, 2014 and up $4.9 billion or 2 percent from $242.0 billion at June 30, 2015.  Money market mutual fund assets were $216.3 billion at Sept. 30, 2015, up $1.1 billion or 1 percent from $215.2 billion at Sept. 30, 2014 and up $7.5 billion or 4 percent from $208.8 billion at June 30, 2015.

Financial Summary

Q3 2015 vs. Q3 2014

Revenue increased by $17.4 million or 8 percent primarily due to a decrease in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers) and an increase in revenue from higher average equity assets.  See additional information about voluntary yield-related fee waivers in the table at the end of this financial summary.

During Q3 2015, Federated derived 67 percent of its revenue from equity and fixed-income assets (46 percent from equity assets and 21 percent from fixed-income assets) and 33 percent from money market assets.

Operating expenses increased by $4.0 million or 3 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers.

Nonoperating expenses, net increased by $2.7 million primarily due to a decrease in net investment income due largely to an increase in losses incurred on investments, partially offset by a decrease in debt expense primarily due to a lower average interest rate on Federated's term loan.

Q3 2015 vs. Q2 2015

Revenue increased by $6.2 million or 3 percent primarily due to an increase in revenue from higher average money market assets and an additional day in Q3 2015.  The increase in revenue was partially offset by a decrease in revenue from lower average equity and fixed-income assets. 

Operating expenses increased by $1.2 million or 1 percent primarily due to an increase in distribution expenses resulting from higher average money market assets and an additional day in Q3 2015.

Nonoperating expenses, net increased by $3.5 million primarily due to a decrease in net investment income resulting from an increase in losses incurred on investments. 

YTD 2015 vs. YTD 2014

Revenue increased by $41.6 million or 6 percent primarily due to a decrease in voluntary yield-related fee waivers and an increase in revenue from higher average equity assets.  The increase in revenue was partially offset by a decrease in revenue from lower average money-market assets. 

For the first nine months of 2015, Federated derived 68 percent of its revenue from equity and fixed-income assets (47 percent from equity assets and 21 percent from fixed-income assets) and 32 percent from money market assets.

Operating expenses increased by $15.3 million or 3 percent primarily due to an increase in distribution expenses and compensation and related expenses.  The increase in distribution expenses primarily resulted from a decrease in voluntary yield-related fee waivers, coupled with higher average equity assets, partially offset by lower average money market assets.  Compensation and related expenses increased primarily due to higher incentive compensation.

Nonoperating (expenses) income, net decreased by $6.0 million primarily due to a decrease in net investment income resulting from an increase in losses incurred on investments in 2015 compared to investment gains realized in 2014, partially offset by a decrease in debt expense primarily due to a lower average interest rate on Federated's term loan.

Federated's level of business activity and financial results are dependent upon many factors including market conditions, investment performance and investor behavior.  These factors and others, including asset levels, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers, expenses and regulatory changes, can significantly impact Federated's business activity levels and financial results.  Risk factors and uncertainties that can influence Federated's financial results are discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission (SEC).

Voluntary yield-related fee waivers and the resulting negative impact of these waivers could vary significantly in the future as they are contingent on a number of variables including, but not limited to, changes in assets within the money market funds, yields on instruments available for purchase by the money market funds, actions by the Federal Reserve, the U.S. Department of the Treasury, the SEC, the Financial Stability Oversight Council and other governmental entities, changes in fees and expenses of the money market funds, changes in the mix of money market customer assets, changes in customer relationships, changes in the money market product structures and offerings, demand for competing products, changes in the distribution fee arrangements with third parties, Federated's willingness to continue the fee waivers and changes in the extent to which the impact of the waivers is shared by third parties.

 

 

Unaudited Money Market Fund Yield Waiver Impact to the Consolidated Statements of Income

(in millions)

Quarter Ended

ChangeQ3 2014 toQ3 2015

Quarter Ended

ChangeQ2 2015 toQ3 2015

Nine Months Ended

ChangeYTD 2014 to YTD 2015

Sept. 30,

 2015

Sept. 30,

 2014

June 30,

2015

Sept. 30,

2015

Sept. 30,2014

Investment advisory fees

$

(49.3)

$

(69.3)

$

20.0

$

(53.4)

$

4.1

$

(165.0)

$

(212.0)

$

47.0

Other service fees

(34.0)

(32.4)

(1.6)

(30.8)

(3.2)

(96.6)

(98.7)

2.1

Total revenue

(83.3)

(101.7)

18.4

(84.2)

0.9

(261.6)

(310.7)

49.1

Less: Reduction in distribution expense

61.3

68.7

(7.4)

60.2

1.1

186.1

213.2

(27.1)

Operating income

(22.0)

(33.0)

11.0

(24.0)

2.0

(75.5)

(97.5)

22.0

Less: Reduction in noncontrolling interest

1.7

2.8

(1.1)

1.8

(0.1)

6.0

8.0

(2.0)

Pre-tax impact

$

(20.3)

$

(30.2)

$

9.9

$

(22.2)

$

1.9

$

(69.5)

$

(89.5)

$

20.0

Federated will host an earnings conference call at 9 a.m. Eastern on Oct. 23, 2015.  Investors are invited to listen to Federated's earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (international) prior to the 9 a.m. start time.  The call may also be accessed in real time on the Internet via the About Federated section of FederatedInvestors.com. A replay will be available after 12:30 p.m. and through Oct. 30, 2015 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 13621743.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $351.0 billion in assets as of Sept. 30, 2015.  With 129 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 8,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.  Federated ranks in the top 4 percent of money market fund managers in the industry, the top 5 percent of equity fund managers and the top 9 percent of fixed-income fund managers1.  For more information, visit FederatedInvestors.com.

###

1) Strategic Insight, Aug. 31, 2015.  Based on assets under management in open-end funds.Federated Securities Corp. is distributor of the Federated funds.Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling and Federated MDTA LLC, each a registered investment adviser.

Certain statements in this press release, such as those related to the level of fee waivers and expenses incurred by the company, product demand and performance, investor interest and preferences, asset flows and mix, changes in customer relationships, changes in product structure, fee arrangements with customers, distribution expense, regulatory changes and market conditions constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements.  Other risks and uncertainties include the ability of the company to predict the level of yield-related fee waivers and expenses in future quarters, which could vary significantly depending on a variety of factors identified above, and include the ability of the company to sustain product demand and asset flows and mix, which could vary significantly depending on market conditions, investment performance and investor behavior.  Other risks and uncertainties also include the risk factors discussed in the company's annual and quarterly reports as filed with the SEC.  As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.

 

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Quarter Ended

% ChangeQ3 2014 toQ3 2015

Quarter Ended

 % ChangeQ2 2015 toQ3 2015

Sept. 30, 2015

Sept. 30, 2014

June 30, 2015

Revenue

Investment advisory fees, net

$

158,898

$

141,086

13

%

$

154,429

3

%

Administrative service fees, net—affiliates

53,275

52,244

2

51,605

3

Other service fees, net

21,198

22,249

(5)

21,031

1

Other, net

950

1,336

(29)

1,062

(11)

Total Revenue

234,321

216,915

8

228,127

3

Operating Expenses

Compensation and related

70,624

70,724

0

70,940

0

Distribution

58,823

53,487

10

54,058

9

Professional service fees

7,823

7,944

(2)

7,285

7

Systems and communications

6,684

6,392

5

6,979

(4)

Office and occupancy

6,552

8,241

(20)

6,710

(2)

Advertising and promotional

3,310

3,271

1

3,504

(6)

Travel and related

3,183

3,028

5

3,533

(10)

Other

3,078

3,000

3

5,839

(47)

Total Operating Expenses

160,077

156,087

3

158,848

1

Operating Income

74,244

60,828

22

69,279

7

Nonoperating (Expenses) Income

Investment (loss) income, net

(3,049)

794

(484)

410

(844)

Debt expense

(979)

(2,162)

(55)

(974)

1

Other, net

(8)

(4)

100

(15)

(47)

Total Nonoperating Expenses, net

(4,036)

(1,372)

194

(579)

597

Income before income taxes

70,208

59,456

18

68,700

2

Income tax provision

26,072

22,197

17

26,437

(1)

Net income including the noncontrolling interests in subsidiaries

44,136

37,259

18

42,263

4

Less: Net income (loss) attributable to the noncontrolling interests

in subsidiaries

5

(301)

102

504

(99)

Net Income

$

44,131

$

37,560

17

%

$

41,759

6

%

Amounts Attributable to Federated Investors, Inc.

Earnings Per Share1

Basic and diluted

$

0.42

$

0.36

17

%

$

0.40

5

%

Weighted-average shares outstanding

Basic

100,449

100,729

100,732

Diluted

100,451

100,731

100,734

Dividends declared per share

$

0.25

$

0.25

$

0.25

 

1)

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $1.7 million, $1.5 million and $1.7 million available to unvested restricted shareholders for the quarterly periods ended Sept. 30, 2015, Sept. 30, 2014 and June 30, 2015, respectively, was excluded from the computation of earnings per share.

 

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Nine Months Ended

Sept. 30, 2015

Sept. 30, 2014

% Change

Revenue

Investment advisory fees, net

$

459,885

$

413,732

11

%

Administrative service fees, net - affiliates

157,897

159,708

(1)

Other service fees, net

62,014

64,478

(4)

Other, net

3,174

3,474

(9)

Total Revenue

682,970

641,392

6

Operating Expenses

Compensation and related

218,062

213,176

2

Distribution

166,376

156,877

6

Professional service fees

22,990

24,502

(6)

Systems and communications

20,533

19,021

8

Office and occupancy

20,115

22,442

(10)

Advertising and promotional

10,285

9,668

6

Travel and related

9,474

9,427

0

Other

12,574

9,964

26

Total Operating Expenses

480,409

465,077

3

Operating Income

202,561

176,315

15

Nonoperating (Expenses) Income

Investment (loss) income, net

(1,749)

8,719

(120)

Debt expense

(3,325)

(7,824)

(58)

Other, net

(37)

(14)

164

Total Nonoperating (Expenses) Income, net

(5,111)

881

(680)

Income before income taxes

197,450

177,196

11

Income tax provision

74,633

66,978

11

Net income including the noncontrolling interests in subsidiaries

122,817

110,218

11

Less: Net income attributable to the noncontrolling interests in subsidiaries

620

595

4

Net Income

$

122,197

$

109,623

11

%

Amounts Attributable to Federated Investors, Inc.

Earnings Per Share1

Basic and diluted

$

1.17

$

1.05

11

%

Weighted-average shares outstanding

Basic

100,606

100,748

Diluted

100,607

100,749

Dividends declared per share

$

0.75

$

0.75

 

1)

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $4.8 million and $4.3 million available to unvested restricted shareholders for the nine months ended Sept. 30, 2015 and Sept. 30, 2014, respectively, was excluded from the computation of earnings per share.

 

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

Sept. 30, 2015

Dec. 31, 2014

Assets

Cash and other investments

$

321,762

$

297,338

Other current assets

41,132

44,717

Intangible assets, net and goodwill

734,808

733,847

Other long-term assets

58,998

64,617

Total Assets

$

1,156,700

$

1,140,519

Liabilities, Redeemable Noncontrolling Interests and Equity

Current liabilities

$

141,661

$

149,321

Long-term debt

197,625

216,750

Other long-term liabilities

171,259

161,099

Redeemable noncontrolling interests

8,611

3,697

Equity excluding treasury stock

827,157

774,910

Treasury stock

(189,613)

(165,258)

Total Liabilities, Redeemable Noncontrolling Interests and Equity

$

1,156,700

$

1,140,519

 

 

 

Unaudited Changes in Equity and Fixed-Income Fund and Separate Account Assets

(in millions; excludes liquidation portfolio)

Quarter Ended

Nine Months Ended

Sept. 30, 2015

June 30, 2015

Sept. 30, 2014

Sept. 30, 2015

Sept. 30, 2014

Equity funds

Beginning assets

$

35,533

$

34,951

$

31,673

$

33,141

$

28,097

Sales

2,464

2,389

2,632

7,658

7,490

Redemptions

(2,043)

(1,923)

(1,389)

(5,880)

(4,686)

Net sales

421

466

1,243

1,778

2,804

Net exchanges

(110)

6

8

(65)

49

Market gains and losses/reinvestments1

(2,571)

110

(836)

(1,581)

1,138

Ending assets

$

33,273

$

35,533

$

32,088

$

33,273

$

32,088

Equity separate accounts2

Beginning assets

$

19,256

$

19,086

$

18,215

$

18,285

$

16,051

Sales3

1,456

1,449

1,131

4,598

3,144

Redemptions3

(1,350)

(1,084)

(737)

(3,388)

(2,261)

Net sales3

106

365

394

1,210

883

Net exchanges

(1)

0

0

(1)

0

Market gains and losses4

(678)

(195)

(362)

(811)

1,313

Ending assets

$

18,683

$

19,256

$

18,247

$

18,683

$

18,247

Total equity2

Beginning assets

$

54,789

$

54,037

$

49,888

$

51,426

$

44,148

Sales3

3,920

3,838

3,763

12,256

10,634

Redemptions3

(3,393)

(3,007)

(2,126)

(9,268)

(6,947)

Net sales3

527

831

1,637

2,988

3,687

Net exchanges

(111)

6

8

(66)

49

Market gains and losses/reinvestments1

(3,249)

(85)

(1,198)

(2,392)

2,451

Ending assets

$

51,956

$

54,789

$

50,335

$

51,956

$

50,335

Fixed-income funds

Beginning assets

$

40,042

$

41,039

$

40,357

$

40,456

$

39,606

Sales

3,277

3,251

3,982

11,019

11,555

Redemptions

(4,173)

(4,004)

(3,744)

(12,370)

(11,709)

Net (redemptions) sales

(896)

(753)

238

(1,351)

(154)

Net exchanges

90

(22)

1

31

(69)

Acquisition related

0

0

0

0

301

Market gains and losses/reinvestments1

(254)

(222)

(161)

(154)

751

Ending assets

$

38,982

$

40,042

$

40,435

$

38,982

$

40,435

Fixed-income separate accounts2

Beginning assets

$

12,862

$

12,523

$

10,772

$

12,251

$

10,520

Sales3

638

754

263

1,631

894

Redemptions3

(336)

(277)

(268)

(817)

(1,037)

Net sales (redemptions)3

302

477

(5)

814

(143)

Net exchanges

(6)

0

0

(6)

1

Market gains and losses4

(75)

(138)

(15)

24

374

Ending assets

$

13,083

$

12,862

$

10,752

$

13,083

$

10,752

Total fixed income2

Beginning assets

$

52,904

$

53,562

$

51,129

$

52,707

$

50,126

Sales3

3,915

4,005

4,245

12,650

12,449

Redemptions3

(4,509)

(4,281)

(4,012)

(13,187)

(12,746)

Net (redemptions) sales3

(594)

(276)

233

(537)

(297)

Net exchanges

84

(22)

1

25

(68)

Acquisition related

0

0

0

0

301

Market gains and losses/reinvestments1

(329)

(360)

(176)

(130)

1,125

Ending assets

$

52,065

$

52,904

$

51,187

$

52,065

$

51,187

 

1)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates.

2)

Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products.

3)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses.

4)

Reflects the approximate changes in the fair value of the securities held by the portfolios.

 

 

Unaudited Total Changes in Equity and Fixed-Income Assets

(in millions; excludes liquidation portfolio)

Quarter Ended

Nine Months Ended

Sept. 30, 2015

June 30, 2015

Sept. 30, 2014

Sept. 30, 2015

Sept. 30, 2014

Funds

Beginning assets

$

75,575

$

75,990

$

72,030

$

73,597

$

67,703

Sales

5,741

5,640

6,614

18,677

19,045

Redemptions

(6,216)

(5,927)

(5,133)

(18,250)

(16,395)

Net (redemptions) sales

(475)

(287)

1,481

427

2,650

Net exchanges

(20)

(16)

9

(34)

(20)

Acquisition related

0

0

0

0

301

Market gains and losses/reinvestments1

(2,825)

(112)

(997)

(1,735)

1,889

Ending assets

$

72,255

$

75,575

$

72,523

$

72,255

$

72,523

Separate accounts2

Beginning assets

$

32,118

$

31,609

$

28,987

$

30,536

$

26,571

Sales3

2,094

2,203

1,394

6,229

4,038

Redemptions3

(1,686)

(1,361)

(1,005)

(4,205)

(3,298)

Net sales3

408

842

389

2,024

740

Net exchanges

(7)

0

0

(7)

1

Market gains and losses4

(753)

(333)

(377)

(787)

1,687

Ending assets

$

31,766

$

32,118

$

28,999

$

31,766

$

28,999

Total assets 2

Beginning assets

$

107,693

$

107,599

$

101,017

$

104,133

$

94,274

Sales3

7,835

7,843

8,008

24,906

23,083

Redemptions3

(7,902)

(7,288)

(6,138)

(22,455)

(19,693)

Net (redemptions) sales3

(67)

555

1,870

2,451

3,390

Net exchanges

(27)

(16)

9

(41)

(19)

Acquisition related

0

0

0

0

301

Market gains and losses/reinvestments1

(3,578)

(445)

(1,374)

(2,522)

3,576

Ending assets

$

104,021

$

107,693

$

101,522

$

104,021

$

101,522

 

1)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates.

2)

Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products.

3)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses.

4)

Reflects the approximate changes in the fair value of the securities held by the portfolios.

 

(unaudited)

MANAGED ASSETS

(in millions)

Sept. 30, 2015

June 30, 2015

March 31, 2015

Dec. 31, 2014

Sept. 30, 2014

By Asset Class

Equity

$

51,956

$

54,789

$

54,037

$

51,426

$

50,335

Fixed-income

52,065

52,904

53,562

52,707

51,187

Money market

246,937

241,982

248,160

258,772

245,536

Liquidation portfolio1

0

0

0

0

5,197

Total Managed Assets

$

350,958

$

349,675

$

355,759

$

362,905

$

352,255

By Product Type

Funds:

Equity

$

33,273

$

35,533

$

34,951

$

33,141

$

32,088

Fixed-income

38,982

40,042

41,039

40,456

40,435

Money market

216,252

208,786

214,310

225,471

215,237

Total Fund Assets

$

288,507

$

284,361

$

290,300

$

299,068

$

287,760

Separate accounts:

Equity

$

18,683

$

19,256

$

19,086

$

18,285

$

18,247

Fixed-income

13,083

12,862

12,523

12,251

10,752

Money market

30,685

33,196

33,850

33,301

30,299

Total Separate Accounts

$

62,451

$

65,314

$

65,459

$

63,837

$

59,298

Total Liquidation Portfolio1

$

0

$

0

$

0

$

0

$

5,197

Total Managed Assets

$

350,958

$

349,675

$

355,759

$

362,905

$

352,255

AVERAGE MANAGED ASSETS

Quarter Ended

(in millions)

Sept. 30, 2015

June 30, 2015

March 31, 2015

Dec. 31, 2014

Sept. 30, 2014

By Asset Class

Equity

$

54,238

$

55,476

$

52,784

$

50,901

$

50,207

Fixed-income

52,577

53,319

53,405

52,782

51,115

Money market

245,133

239,774

253,261

246,698

242,537

Liquidation portfolio1

0

0

0

1,563

5,307

Total Avg. Assets

$

351,948

$

348,569

$

359,450

$

351,944

$

349,166

By Product Type

Funds:

Equity

$

35,181

$

35,998

$

34,162

$

32,705

$

32,060

Fixed-income

39,526

40,574

41,013

41,072

40,275

Money market

213,633

205,943

218,168

216,235

211,571

Total Avg. Fund Assets

$

288,340

$

282,515

$

293,343

$

290,012

$

283,906

Separate accounts:

Equity

$

19,057

$

19,478

$

18,622

$

18,196

$

18,147

Fixed-income

13,051

12,745

12,392

11,710

10,840

Money market

31,500

33,831

35,093

30,463

30,966

Total Avg. Separate Accounts

$

63,608

$

66,054

$

66,107

$

60,369

$

59,953

Total Avg. Liquidation Portfolio1

$

0

$

0

$

0

$

1,563

$

5,307

Total Avg. Managed Assets

$

351,948

$

348,569

$

359,450

$

351,944

$

349,166

 

1)

The liquidation portfolio represented a portfolio of distressed bonds at cost. Federated had been retained by a third party to manage these assets through an orderly liquidation process that was completed during the fourth quarter of 2014. Management-fee rates earned from this portfolio were lower than those of traditional separate account mandates.

 

(unaudited)

AVERAGE MANAGED ASSETS

Nine Months Ended

(in millions)

Sept. 30, 2015

     Sept. 30, 2014     

By Asset Class

Equity

$

54,166

$

47,455

Fixed-income

53,100

50,850

Money market

246,057

256,782

Liquidation portfolio1

0

5,555

Total Avg. Assets

$

353,323

$

360,642

By Product Type

Funds:

Equity

$

35,114

$

30,243

Fixed-income

40,371

40,131

Money market

212,582

222,245

Total Avg. Fund Assets

$

288,067

$

292,619

Separate Accounts:

Equity

$

19,052

$

17,212

Fixed-income

12,729

10,719

Money market

33,475

34,537

Total Avg. Separate Accounts

$

65,256

$

62,468

Total Avg. Liquidation Portfolio1

$

0

$

5,555

Total Avg. Managed Assets

$

353,323

$

360,642

 

1)

The liquidation portfolio represented a portfolio of distressed bonds at cost. Federated had been retained by a third party to manage these assets through an orderly liquidation process that was completed during the fourth quarter of 2014. Management-fee rates earned from this portfolio were lower than those of traditional separate account mandates.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/federated-investors-inc-reports-third-quarter-2015-earnings-300164959.html

SOURCE Federated Investors, Inc.


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