PITTSBURGH, July 23, 2015 /PRNewswire/ -- Federated
Investors, Inc. (NYSE: FII), one of the nation's largest investment
managers, today reported earnings per diluted share (EPS) of
$0.40 for Q2 2015, up 14 percent from
$0.35 for the same quarter last year
on net income of $41.8 million for Q2
2015, compared to $36.9 million for
Q2 2014. Federated reported YTD 2015 EPS of $0.74 compared to $0.69 for the same period in 2014 and YTD 2015
net income of $78.1 million compared
to $72.1 million for the same period
last year.
Federated's total managed assets were $349.7 billion at June
30, 2015. Total managed assets were down $1.9 billion or 1 percent from $351.6 billion at June 30,
2014 and down $6.1 billion or
2 percent from $355.8 billion at
March 31, 2015. Growth in
equity assets was offset by lower fixed-income and money market
assets in Q2 2015 compared to Q1 2015. Average managed assets
for Q2 2015 were $348.6 billion, down
$9.8 billion or 3 percent from
$358.4 billion reported for Q2 2014
and down $10.9 billion or 3 percent
from $359.5 billion reported for Q1
2015.
"Investors in the second quarter sought alpha from a range of
strong-performing Federated products, including our Kaufmann growth
strategies and Federated International Leaders Fund," said
J. Christopher Donahue, president
and chief executive officer. "Additionally, we saw continued
interest in income-oriented strategies such as our balanced and
high-yield offerings."
Federated's board of directors declared a dividend of
$0.25 per share. The dividend
is payable on Aug. 14, 2015 to
shareholders of record as of Aug. 7,
2015. During Q2 2015, Federated purchased 317,747 shares of
Federated class B common stock for $10.5
million.
Federated's equity assets were a record $54.8 billion at June 30,
2015, up $4.9 billion or 10
percent from $49.9 billion at
June 30, 2014 and up $0.8 billion or 1 percent from $54.0 billion at March
31, 2015. Top-selling equity funds during Q2 2015 on a
net basis were Federated Kaufmann Large Cap Fund, Federated
International Leaders Fund, Federated Kaufmann Small Cap Fund,
Federated Capital Income Fund and Federated Muni and Stock
Advantage Fund.
Federated's fixed-income assets were $52.9 billion at June 30,
2015, up $1.8 billion or 4
percent from $51.1 billion at
June 30, 2014 and down $0.7 billion or 1 percent from $53.6 billion at March
31, 2015. Top-selling fixed-income funds during Q2
2015 on a net basis were Federated Institutional High Yield Bond
Fund, Federated Total Return Bond Fund, Federated Sterling Cash
Plus Fund, Federated High Yield Trust and Federated Government
Ultrashort Duration Fund.
Money market assets were $242.0
billion at June 30, 2015, down
$3.2 billion or 1 percent from
$245.2 billion at June 30, 2014 and down $6.2 billion or 2 percent from $248.2 billion at March
31, 2015. Money market mutual fund assets were
$208.8 billion at June 30, 2015, down $3.6
billion or 2 percent from $212.4
billion at June 30, 2014 and
down $5.5 billion or 3 percent from
$214.3 billion at March 31, 2015.
Financial Summary
Q2 2015 vs. Q2 2014
Revenue increased by $15.1 million
or 7 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 and an increase in revenue
from higher average equity assets. These increases in revenue
were partially offset by a decrease in revenue from lower average
money market assets. See additional information about
voluntary fee waivers in the table at the end of this financial
summary.
During Q2 2015, Federated derived 69 percent of its revenue from
equity and fixed-income assets (48 percent from equity assets and
21 percent from fixed-income assets) and 31 percent from money
market assets.
Operating expenses increased $4.7
million or 3 percent primarily due to an increase in
distribution expenses as a result of a decrease in fee waivers
related to the low-yield environment for money market funds as well
as higher average equity assets. These increases were
partially offset by decreases in distribution expenses as a result
of lower average money market assets.
Nonoperating (expenses) income, net decreased $2.0 million primarily due to a decrease in
investment income, net due largely to a decrease in gains on
investments, partially offset by a decrease in debt expense
primarily due to a lower average interest rate.
Q2 2015 vs. Q1 2015
Revenue increased by $7.6 million
or 3 percent primarily due to a decrease in voluntary fee waivers,
an increase in revenue from higher average equity assets and an
additional day in Q2 2015. These increases in revenue were
partially offset by a decrease in revenue from lower average money
market assets.
Operating expenses decreased $2.6
million or 2 percent primarily due to a decrease in
compensation and related expenses.
YTD 2015 vs. YTD 2014
Revenue increased by $24.2 million
or 6 percent primarily due to a decrease in voluntary fee waivers
and an increase in revenue from higher average equity assets.
These increases in revenue were partially offset by a decrease in
revenue from lower average money market assets.
For the first half of 2015, Federated derived 69 percent of its
revenue from equity and fixed-income assets (47 percent from equity
assets and 22 percent from fixed-income assets) and 31 percent from
money market assets.
Operating expenses increased by $11.3
million or 4 percent primarily due to an increase in
compensation and related expenses, resulting mostly from higher
incentive compensation, and an increase in distribution expenses as
a result of a decrease in fee waivers related to the low-yield
environment for money market funds as well as higher average equity
assets. These increases were partially offset by decreases in
distribution expenses as a result of lower average money market
assets.
Nonoperating (expenses) income, net decreased $3.3 million primarily due to a decrease in
investment income, net due largely to a decrease in gains on
investments, partially offset by a decrease in debt expense
primarily due to a lower average interest rate.
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).
Fee waivers to maintain positive or zero net yields on money
market funds 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 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
|
|
Change
Q2 2014 to
Q2 2015
|
|
Quarter
Ended
|
|
Change
Q1 2015 to
Q2 2015
|
|
Six Months
Ended
|
|
Change
YTD 2014
to YTD
2015
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
March 31,
2015
|
|
|
June 30,
2015
|
|
June 30,
2014
|
|
Investment advisory
fees
|
$
|
(53.4)
|
|
|
$
|
(69.6)
|
|
|
$
|
16.2
|
|
|
$
|
(62.3)
|
|
|
$
|
8.9
|
|
|
$
|
(115.7)
|
|
|
$
|
(142.7)
|
|
|
$
|
27.0
|
|
Other service
fees
|
(30.8)
|
|
|
(32.7)
|
|
|
1.9
|
|
|
(31.8)
|
|
|
1.0
|
|
|
(62.6)
|
|
|
(66.3)
|
|
|
3.7
|
|
Total
revenue
|
(84.2)
|
|
|
(102.3)
|
|
|
18.1
|
|
|
(94.1)
|
|
|
9.9
|
|
|
(178.3)
|
|
|
(209.0)
|
|
|
30.7
|
|
Less: Reduction in
distribution expense
|
60.2
|
|
|
70.2
|
|
|
(10.0)
|
|
|
64.6
|
|
|
(4.4)
|
|
|
124.8
|
|
|
144.5
|
|
|
(19.7)
|
|
Operating
income
|
(24.0)
|
|
|
(32.1)
|
|
|
8.1
|
|
|
(29.5)
|
|
|
5.5
|
|
|
(53.5)
|
|
|
(64.5)
|
|
|
11.0
|
|
Less: Reduction in
noncontrolling interest
|
1.8
|
|
|
2.5
|
|
|
(0.7)
|
|
|
2.5
|
|
|
(0.7)
|
|
|
4.3
|
|
|
5.2
|
|
|
(0.9)
|
|
Pre-tax
impact
|
$
|
(22.2)
|
|
|
$
|
(29.6)
|
|
|
$
|
7.4
|
|
|
$
|
(27.0)
|
|
|
$
|
4.8
|
|
|
$
|
(49.2)
|
|
|
$
|
(59.3)
|
|
|
$
|
10.1
|
|
Federated will host an earnings conference call at 9 a.m. Eastern on July
24, 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 July 31, 2015 by calling
877-660-6853 (domestic) or 201-612-7415 (international) and
entering access code 13613559.
Federated Investors, Inc. is one of the largest investment
managers in the United States,
managing $349.7 billion in assets as
of June 30, 2015. With 130 funds and a variety of
separately managed account options, Federated provides
comprehensive investment management to more than 7,900 institutions
and intermediaries including corporations, government entities,
insurance companies, foundations and endowments, banks and
broker/dealers. Federated ranks in the top 3 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, May 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 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 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
|
% Change
Q2 2014 to
Q2 2015
|
|
Quarter
Ended
|
% Change
Q1 2015 to
Q2 2015
|
|
June 30,
2015
|
June 30,
2014
|
|
March 31,
2015
|
Revenue
|
|
|
|
|
|
|
Investment advisory
fees, net
|
$
|
154,429
|
|
$
|
137,553
|
|
12
|
%
|
|
$
|
146,559
|
|
5
|
%
|
Administrative
service fees, net—affiliates
|
51,605
|
|
52,738
|
|
(2)
|
|
|
53,017
|
|
(3)
|
|
Other service fees,
net
|
21,031
|
|
21,447
|
|
(2)
|
|
|
19,787
|
|
6
|
|
Other, net
|
1,062
|
|
1,243
|
|
(15)
|
|
|
1,159
|
|
(8)
|
|
Total
Revenue
|
228,127
|
|
212,981
|
|
7
|
|
|
220,522
|
|
3
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Compensation and
related
|
70,940
|
|
70,693
|
|
0
|
|
|
76,498
|
|
(7)
|
|
Distribution
|
54,058
|
|
52,193
|
|
4
|
|
|
53,495
|
|
1
|
|
Professional service
fees
|
7,285
|
|
8,177
|
|
(11)
|
|
|
7,882
|
|
(8)
|
|
Systems and
communications
|
6,979
|
|
6,225
|
|
12
|
|
|
6,870
|
|
2
|
|
Office and
occupancy
|
6,710
|
|
7,286
|
|
(8)
|
|
|
6,853
|
|
(2)
|
|
Travel and
related
|
3,533
|
|
3,538
|
|
0
|
|
|
2,759
|
|
28
|
|
Advertising and
promotional
|
3,504
|
|
2,959
|
|
18
|
|
|
3,471
|
|
1
|
|
Other
|
5,839
|
|
3,068
|
|
90
|
|
|
3,656
|
|
60
|
|
Total Operating
Expenses
|
158,848
|
|
154,139
|
|
3
|
|
|
161,484
|
|
(2)
|
|
Operating
Income
|
69,279
|
|
58,842
|
|
18
|
|
|
59,038
|
|
17
|
|
|
|
|
|
|
|
|
Nonoperating
(Expenses) Income
|
|
|
|
|
|
|
Investment income,
net
|
410
|
|
4,311
|
|
(90)
|
|
|
890
|
|
(54)
|
|
Debt
expense
|
(974)
|
|
(2,849)
|
|
(66)
|
|
|
(1,373)
|
|
(29)
|
|
Other, net
|
(15)
|
|
(5)
|
|
200
|
|
|
(13)
|
|
15
|
|
Total Nonoperating
(Expenses) Income, net
|
(579)
|
|
1,457
|
|
(140)
|
|
|
(496)
|
|
17
|
|
Income before income
taxes
|
68,700
|
|
60,299
|
|
14
|
|
|
58,542
|
|
17
|
|
Income tax
provision
|
26,437
|
|
22,985
|
|
15
|
|
|
22,124
|
|
19
|
|
Net income including
the noncontrolling interests in subsidiaries
|
42,263
|
|
37,314
|
|
13
|
|
|
36,418
|
|
16
|
|
Less: Net income
attributable to the noncontrolling interests in
subsidiaries
|
504
|
|
445
|
|
13
|
|
|
111
|
|
354
|
|
Net Income
|
$
|
41,759
|
|
$
|
36,869
|
|
13
|
%
|
|
$
|
36,307
|
|
15
|
%
|
|
|
|
|
|
|
|
Amounts
Attributable to Federated Investors, Inc.
|
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
0.40
|
|
$
|
0.35
|
|
14
|
%
|
|
$
|
0.35
|
|
14
|
%
|
Weighted-average
shares outstanding
|
|
|
|
|
|
|
Basic
|
100,732
|
|
100,789
|
|
|
|
100,641
|
|
|
Diluted
|
100,734
|
|
100,790
|
|
|
|
100,642
|
|
|
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 $1.5
million available to unvested restricted shareholders for
the quarterly periods ended June 30,
2015, June 30, 2014 and
March 31, 2015, respectively, was
excluded from the computation of earnings per share.
Unaudited
Condensed Consolidated Statements of Income
|
(in thousands,
except per share data)
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
June 30,
2015
|
June 30,
2014
|
|
%
Change
|
Revenue
|
|
|
|
|
Investment advisory
fees, net
|
$
|
300,987
|
|
$
|
272,646
|
|
|
10
|
%
|
Administrative
service fees, net - affiliates
|
104,622
|
|
107,465
|
|
|
(3)
|
|
Other service fees,
net
|
40,817
|
|
42,227
|
|
|
(3)
|
|
Other, net
|
2,223
|
|
2,139
|
|
|
4
|
|
Total
Revenue
|
448,649
|
|
424,477
|
|
|
6
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
Compensation and
related
|
147,438
|
|
142,452
|
|
|
4
|
|
Distribution
|
107,553
|
|
103,390
|
|
|
4
|
|
Professional service
fees
|
15,167
|
|
16,558
|
|
|
(8)
|
|
Systems and
communications
|
13,849
|
|
12,629
|
|
|
10
|
|
Office and
occupancy
|
13,563
|
|
14,201
|
|
|
(4)
|
|
Advertising and
promotional
|
6,975
|
|
6,398
|
|
|
9
|
|
Travel and
related
|
6,291
|
|
6,399
|
|
|
(2)
|
|
Other
|
9,496
|
|
6,963
|
|
|
36
|
|
Total Operating
Expenses
|
320,332
|
|
308,990
|
|
|
4
|
|
Operating
Income
|
128,317
|
|
115,487
|
|
|
11
|
|
|
|
|
|
|
Nonoperating
(Expenses) Income
|
|
|
|
|
Investment income,
net
|
1,300
|
|
7,924
|
|
|
(84)
|
|
Debt
expense
|
(2,347)
|
|
(5,662)
|
|
|
(59)
|
|
Other, net
|
(28)
|
|
(9)
|
|
|
211
|
|
Total Nonoperating
(Expenses) Income, net
|
(1,075)
|
|
2,253
|
|
|
(148)
|
|
Income before income
taxes
|
127,242
|
|
117,740
|
|
|
8
|
|
Income tax
provision
|
48,561
|
|
44,781
|
|
|
8
|
|
Net income including
the noncontrolling interests in subsidiaries
|
78,681
|
|
72,959
|
|
|
8
|
|
Less: Net
income attributable to the noncontrolling interests in
subsidiaries
|
615
|
|
896
|
|
|
(31)
|
|
Net Income
|
$
|
78,066
|
|
$
|
72,063
|
|
|
8
|
%
|
|
|
|
|
|
Amounts
Attributable to Federated Investors, Inc.
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
Basic and
diluted
|
$
|
0.74
|
|
$
|
0.69
|
|
|
7
|
%
|
Weighted-average
shares outstanding
|
|
|
|
|
Basic
|
100,686
|
|
100,757
|
|
|
|
Diluted
|
100,688
|
|
100,759
|
|
|
|
Dividends declared
per share
|
$
|
0.50
|
|
$
|
0.50
|
|
|
|
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
$3.1 million and $2.9 million available to unvested restricted
shareholders for the six months ended June
30, 2015 and June 30, 2014,
respectively, was excluded from the computation of earnings per
share.
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
(in
thousands)
|
June 30,
2015
|
Dec. 31,
2014
|
Assets
|
|
|
Cash and other
investments
|
$
|
299,877
|
|
$
|
297,338
|
|
Other current
assets
|
46,298
|
|
44,717
|
|
Intangible assets,
net and goodwill
|
734,741
|
|
733,847
|
|
Other long-term
assets
|
61,905
|
|
64,617
|
|
Total
Assets
|
$
|
1,142,821
|
|
$
|
1,140,519
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests and Equity
|
|
|
Current
liabilities
|
$
|
123,820
|
|
$
|
149,321
|
|
Long-term
debt
|
204,000
|
|
216,750
|
|
Other long-term
liabilities
|
170,756
|
|
161,099
|
|
Redeemable
noncontrolling interests
|
12,223
|
|
3,697
|
|
Equity excluding
treasury stock
|
805,294
|
|
774,910
|
|
Treasury
stock
|
(173,272)
|
|
(165,258)
|
|
Total Liabilities,
Redeemable Noncontrolling Interests and Equity
|
$
|
1,142,821
|
|
$
|
1,140,519
|
|
Unaudited
Changes in Equity and Fixed-Income Fund and Separate Account
Assets
|
(in millions;
excludes liquidation portfolio)
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
June 30,
2015
|
March 31,
2015
|
June 30,
2014
|
|
June 30,
2015
|
June 30,
2014
|
Equity
funds
|
|
|
|
|
|
|
Beginning
assets
|
$
|
34,951
|
|
$
|
33,141
|
|
$
|
29,208
|
|
|
$
|
33,141
|
|
$
|
28,097
|
|
Sales
|
2,389
|
|
2,805
|
|
2,566
|
|
|
5,194
|
|
4,858
|
|
Redemptions
|
(1,923)
|
|
(1,914)
|
|
(1,464)
|
|
|
(3,837)
|
|
(3,297)
|
|
Net sales
|
466
|
|
891
|
|
1,102
|
|
|
1,357
|
|
1,561
|
|
Net
exchanges
|
6
|
|
39
|
|
9
|
|
|
45
|
|
41
|
|
Market gains and
losses/reinvestments1
|
110
|
|
880
|
|
1,354
|
|
|
990
|
|
1,974
|
|
Ending
assets
|
$
|
35,533
|
|
$
|
34,951
|
|
$
|
31,673
|
|
|
$
|
35,533
|
|
$
|
31,673
|
|
|
|
|
|
|
|
|
Equity separate
accounts2
|
|
|
|
|
|
|
Beginning
assets
|
$
|
19,086
|
|
$
|
18,285
|
|
$
|
16,671
|
|
|
$
|
18,285
|
|
$
|
16,051
|
|
Sales3
|
1,449
|
|
1,693
|
|
1,168
|
|
|
3,142
|
|
2,013
|
|
Redemptions3
|
(1,084)
|
|
(954)
|
|
(746)
|
|
|
(2,038)
|
|
(1,524)
|
|
Net
sales3
|
365
|
|
739
|
|
422
|
|
|
1,104
|
|
489
|
|
Market gains and
losses4
|
(195)
|
|
62
|
|
1,122
|
|
|
(133)
|
|
1,675
|
|
Ending
assets
|
$
|
19,256
|
|
$
|
19,086
|
|
$
|
18,215
|
|
|
$
|
19,256
|
|
$
|
18,215
|
|
|
|
|
|
|
|
|
Total
equity2
|
|
|
|
|
|
|
Beginning
assets
|
$
|
54,037
|
|
$
|
51,426
|
|
$
|
45,879
|
|
|
$
|
51,426
|
|
$
|
44,148
|
|
Sales3
|
3,838
|
|
4,498
|
|
3,734
|
|
|
8,336
|
|
6,871
|
|
Redemptions3
|
(3,007)
|
|
(2,868)
|
|
(2,210)
|
|
|
(5,875)
|
|
(4,821)
|
|
Net
sales3
|
831
|
|
1,630
|
|
1,524
|
|
|
2,461
|
|
2,050
|
|
Net
exchanges
|
6
|
|
39
|
|
9
|
|
|
45
|
|
41
|
|
Market gains and
losses/reinvestments1
|
(85)
|
|
942
|
|
2,476
|
|
|
857
|
|
3,649
|
|
Ending
assets
|
$
|
54,789
|
|
$
|
54,037
|
|
$
|
49,888
|
|
|
$
|
54,789
|
|
$
|
49,888
|
|
|
|
|
|
|
|
|
Fixed-income
funds
|
|
|
|
|
|
|
Beginning
assets
|
$
|
41,039
|
|
$
|
40,456
|
|
$
|
40,237
|
|
|
$
|
40,456
|
|
$
|
39,606
|
|
Sales
|
3,251
|
|
4,491
|
|
3,325
|
|
|
7,742
|
|
7,573
|
|
Redemptions
|
(4,004)
|
|
(4,193)
|
|
(3,940)
|
|
|
(8,197)
|
|
(7,965)
|
|
Net (redemptions)
sales
|
(753)
|
|
298
|
|
(615)
|
|
|
(455)
|
|
(392)
|
|
Net
exchanges
|
(22)
|
|
(37)
|
|
(11)
|
|
|
(59)
|
|
(70)
|
|
Acquisition
related
|
0
|
|
0
|
|
301
|
|
|
0
|
|
301
|
|
Market gains and
losses/reinvestments1
|
(222)
|
|
322
|
|
445
|
|
|
100
|
|
912
|
|
Ending
assets
|
$
|
40,042
|
|
$
|
41,039
|
|
$
|
40,357
|
|
|
$
|
40,042
|
|
$
|
40,357
|
|
|
|
|
|
|
|
|
Fixed-income
separate accounts2
|
|
|
|
|
|
|
Beginning
assets
|
$
|
12,523
|
|
$
|
12,251
|
|
$
|
10,746
|
|
|
$
|
12,251
|
|
$
|
10,520
|
|
Sales3
|
754
|
|
239
|
|
377
|
|
|
993
|
|
631
|
|
Redemptions3
|
(277)
|
|
(204)
|
|
(537)
|
|
|
(481)
|
|
(769)
|
|
Net sales
(redemptions)3
|
477
|
|
35
|
|
(160)
|
|
|
512
|
|
(138)
|
|
Net
exchanges
|
0
|
|
0
|
|
1
|
|
|
0
|
|
1
|
|
Market gains and
losses4
|
(138)
|
|
237
|
|
185
|
|
|
99
|
|
389
|
|
Ending
assets
|
$
|
12,862
|
|
$
|
12,523
|
|
$
|
10,772
|
|
|
$
|
12,862
|
|
$
|
10,772
|
|
|
|
|
|
|
|
|
Total fixed
income2
|
|
|
|
|
|
|
Beginning
assets
|
$
|
53,562
|
|
$
|
52,707
|
|
$
|
50,983
|
|
|
$
|
52,707
|
|
$
|
50,126
|
|
Sales3
|
4,005
|
|
4,730
|
|
3,702
|
|
|
8,735
|
|
8,204
|
|
Redemptions3
|
(4,281)
|
|
(4,397)
|
|
(4,477)
|
|
|
(8,678)
|
|
(8,734)
|
|
Net (redemptions)
sales3
|
(276)
|
|
333
|
|
(775)
|
|
|
57
|
|
(530)
|
|
Net
exchanges
|
(22)
|
|
(37)
|
|
(10)
|
|
|
(59)
|
|
(69)
|
|
Acquisition
related
|
0
|
|
0
|
|
301
|
|
|
0
|
|
301
|
|
Market gains and
losses/reinvestments1
|
(360)
|
|
559
|
|
630
|
|
|
199
|
|
1,301
|
|
Ending
assets
|
$
|
52,904
|
|
$
|
53,562
|
|
$
|
51,129
|
|
|
$
|
52,904
|
|
$
|
51,129
|
|
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
|
|
Six Months
Ended
|
|
June 30,
2015
|
March 31,
2015
|
June 30,
2014
|
|
June 30,
2015
|
June 30,
2014
|
|
|
|
|
|
|
|
Funds
|
|
|
|
|
|
|
Beginning
assets
|
$
|
75,990
|
|
$
|
73,597
|
|
$
|
69,445
|
|
|
$
|
73,597
|
|
$
|
67,703
|
|
Sales
|
5,640
|
|
7,296
|
|
5,891
|
|
|
12,936
|
|
12,431
|
|
Redemptions
|
(5,927)
|
|
(6,107)
|
|
(5,404)
|
|
|
(12,034)
|
|
(11,262)
|
|
Net (redemptions)
sales
|
(287)
|
|
1,189
|
|
487
|
|
|
902
|
|
1,169
|
|
Net
exchanges
|
(16)
|
|
2
|
|
(2)
|
|
|
(14)
|
|
(29)
|
|
Acquisition
related
|
0
|
|
0
|
|
301
|
|
|
0
|
|
301
|
|
Market gains and
losses/reinvestments1
|
(112)
|
|
1,202
|
|
1,799
|
|
|
1,090
|
|
2,886
|
|
Ending
assets
|
$
|
75,575
|
|
$
|
75,990
|
|
$
|
72,030
|
|
|
$
|
75,575
|
|
$
|
72,030
|
|
|
|
|
|
|
|
|
Separate
accounts2
|
|
|
|
|
|
|
Beginning
assets
|
$
|
31,609
|
|
$
|
30,536
|
|
$
|
27,417
|
|
|
$
|
30,536
|
|
$
|
26,571
|
|
Sales3
|
2,203
|
|
1,932
|
|
1,545
|
|
|
4,135
|
|
2,644
|
|
Redemptions3
|
(1,361)
|
|
(1,158)
|
|
(1,283)
|
|
|
(2,519)
|
|
(2,293)
|
|
Net
sales3
|
842
|
|
774
|
|
262
|
|
|
1,616
|
|
351
|
|
Net
exchanges
|
0
|
|
0
|
|
1
|
|
|
0
|
|
1
|
|
Market gains and
losses4
|
(333)
|
|
299
|
|
1,307
|
|
|
(34)
|
|
2,064
|
|
Ending
assets
|
$
|
32,118
|
|
$
|
31,609
|
|
$
|
28,987
|
|
|
$
|
32,118
|
|
$
|
28,987
|
|
|
|
|
|
|
|
|
Total assets
2
|
|
|
|
|
|
|
Beginning
assets
|
$
|
107,599
|
|
$
|
104,133
|
|
$
|
96,862
|
|
|
$
|
104,133
|
|
$
|
94,274
|
|
Sales3
|
7,843
|
|
9,228
|
|
7,436
|
|
|
17,071
|
|
15,075
|
|
Redemptions3
|
(7,288)
|
|
(7,265)
|
|
(6,687)
|
|
|
(14,553)
|
|
(13,555)
|
|
Net
sales3
|
555
|
|
1,963
|
|
749
|
|
|
2,518
|
|
1,520
|
|
Net
exchanges
|
(16)
|
|
2
|
|
(1)
|
|
|
(14)
|
|
(28)
|
|
Acquisition
related
|
0
|
|
0
|
|
301
|
|
|
0
|
|
301
|
|
Market gains and
losses/reinvestments1
|
(445)
|
|
1,501
|
|
3,106
|
|
|
1,056
|
|
4,950
|
|
Ending
assets
|
$
|
107,693
|
|
$
|
107,599
|
|
$
|
101,017
|
|
|
$
|
107,693
|
|
$
|
101,017
|
|
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)
|
June 30,
2015
|
|
|
March 31,
2015
|
|
|
Dec. 31,
2014
|
|
|
Sept. 30,
2014
|
|
|
June 30,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By Asset
Class
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
$
|
54,789
|
|
$
|
54,037
|
|
$
|
51,426
|
|
$
|
50,335
|
|
$
|
49,888
|
Fixed-income
|
52,904
|
|
53,562
|
|
52,707
|
|
51,187
|
|
51,129
|
Money
market
|
241,982
|
|
248,160
|
|
258,772
|
|
245,536
|
|
245,201
|
Liquidation
portfolio1
|
0
|
|
0
|
|
0
|
|
5,197
|
|
5,408
|
Total Managed
Assets
|
$
|
349,675
|
|
$
|
355,759
|
|
$
|
362,905
|
|
$
|
352,255
|
|
$
|
351,626
|
By Product
Type
|
|
|
Funds:
|
|
|
Equity
|
$
|
35,533
|
|
$
|
34,951
|
|
$
|
33,141
|
|
$
|
32,088
|
|
$
|
31,673
|
Fixed-income
|
40,042
|
|
41,039
|
|
40,456
|
|
40,435
|
|
40,357
|
Money
market
|
208,786
|
|
214,310
|
|
225,471
|
|
215,237
|
|
212,434
|
Total Fund
Assets
|
$
|
284,361
|
|
$
|
290,300
|
|
$
|
299,068
|
|
$
|
287,760
|
|
$
|
284,464
|
Separate
accounts:
|
|
|
Equity
|
$
|
19,256
|
|
$
|
19,086
|
|
$
|
18,285
|
|
$
|
18,247
|
|
$
|
18,215
|
Fixed-income
|
12,862
|
12,523
|
12,251
|
10,752
|
10,772
|
Money
market
|
33,196
|
33,850
|
33,301
|
30,299
|
32,767
|
Total Separate
Accounts
|
$
|
65,314
|
|
$
|
65,459
|
|
$
|
63,837
|
|
$
|
59,298
|
|
$
|
61,754
|
Total Liquidation
Portfolio1
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
5,197
|
|
$
|
5,408
|
Total Managed
Assets
|
$
|
349,675
|
|
$
|
355,759
|
|
$
|
362,905
|
|
$
|
352,255
|
|
$
|
351,626
|
|
AVERAGE MANAGED
ASSETS
|
Quarter
Ended
|
(in millions)
|
June 30,
2015
|
|
|
March 31,
2015
|
|
|
Dec. 31,
2014
|
|
|
Sept. 30,
2014
|
|
|
June 30,
2014
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
|
55,476
|
|
$
|
52,784
|
|
$
|
50,901
|
|
$
|
50,207
|
|
$
|
47,466
|
Fixed-income
|
53,319
|
53,405
|
52,782
|
51,115
|
50,774
|
Money
market
|
239,774
|
253,261
|
246,698
|
242,537
|
254,575
|
Liquidation
portfolio1
|
0
|
0
|
1,563
|
5,307
|
5,569
|
Total Avg.
Assets
|
$
|
348,569
|
|
$
|
359,450
|
|
$
|
351,944
|
|
$
|
349,166
|
|
$
|
358,384
|
By Product
Type
|
|
|
Funds:
|
|
|
Equity
|
$
|
35,998
|
|
$
|
34,162
|
|
$
|
32,705
|
|
$
|
32,060
|
|
$
|
30,154
|
Fixed-income
|
40,574
|
41,013
|
41,072
|
40,275
|
40,130
|
Money
market
|
205,943
|
218,168
|
216,235
|
211,571
|
219,936
|
Total Avg. Fund
Assets
|
$
|
282,515
|
|
$
|
293,343
|
|
$
|
290,012
|
|
$
|
283,906
|
|
$
|
290,220
|
Separate
accounts:
|
|
|
Equity
|
$
|
19,478
|
|
$
|
18,622
|
|
$
|
18,196
|
|
$
|
18,147
|
|
$
|
17,312
|
Fixed-income
|
12,745
|
12,392
|
11,710
|
10,840
|
10,644
|
Money
market
|
33,831
|
35,093
|
30,463
|
30,966
|
34,639
|
Total Avg.
Separate Accounts
|
$
|
66,054
|
|
$
|
66,107
|
|
$
|
60,369
|
|
$
|
59,953
|
|
$
|
62,595
|
Total Avg.
Liquidation Portfolio1
|
$
|
0
|
|
$
|
0
|
|
$
|
1,563
|
|
$
|
5,307
|
|
$
|
5,569
|
Total Avg. Managed
Assets
|
$
|
348,569
|
|
$
|
359,450
|
|
$
|
351,944
|
|
$
|
349,166
|
|
$
|
358,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
(in
millions)
|
June 30,
2015
|
|
June 30,
2014
|
|
|
|
|
By Asset
Class
|
Equity
|
|
$
|
54,130
|
|
|
$
|
46,079
|
Fixed-income
|
|
53,362
|
|
50,716
|
Money
market
|
|
246,518
|
|
263,904
|
Liquidation
portfolio1
|
|
0
|
|
5,680
|
Total Avg.
Assets
|
|
$
|
354,010
|
|
|
$
|
366,379
|
By Product
Type
|
|
|
|
|
Funds:
|
|
|
|
|
Equity
|
|
$
|
35,080
|
|
|
$
|
29,335
|
Fixed-income
|
|
40,793
|
|
40,058
|
Money
market
|
|
212,056
|
|
227,582
|
Total Avg. Fund
Assets
|
|
$
|
287,929
|
|
|
$
|
296,975
|
Separate
Accounts:
|
|
|
|
|
Equity
|
|
$
|
19,050
|
|
|
$
|
16,744
|
Fixed-income
|
|
12,569
|
|
10,658
|
Money
market
|
|
34,462
|
|
36,322
|
Total Avg.
Separate Accounts
|
|
$
|
66,081
|
|
|
$
|
63,724
|
Total Avg.
Liquidation Portfolio1
|
|
$
|
0
|
|
|
$
|
5,680
|
Total Avg. Managed
Assets
|
|
$
|
354,010
|
|
|
$
|
366,379
|
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-second-quarter-2015-earnings-300118045.html
SOURCE Federated Investors, Inc.