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.

Copyright 2015 PR Newswire

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