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
|
|
Change
Q3 2014 to
Q3 2015
|
|
Quarter
Ended
|
|
Change
Q2 2015 to
Q3 2015
|
|
Nine Months
Ended
|
|
Change
YTD 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
|
% Change
Q3 2014 to
Q3 2015
|
|
Quarter
Ended
|
% Change
Q2 2015 to
Q3 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.