PITTSBURGH, July 28, 2016 /PRNewswire/ -- Federated
Investors, Inc. (NYSE: FII), one of the nation's largest investment
managers, today reported earnings per diluted share (EPS) of
$0.51 for Q2 2016, compared to
$0.40 for the same quarter last year
on net income of $52.7 million for Q2
2016, compared to $41.8 million for
Q2 2015. Federated reported YTD 2016 EPS of $0.94, compared to $0.74 for the same period in 2015 on YTD 2016 net
income of $98.2 million compared to
$78.1 million for the same period
last year. Results for Q2 2016 and YTD 2016 included a pre-tax
impact of $3.5 million, or
$0.02 EPS, from insurance
proceeds.
Federated's total managed assets were $367.2 billion at June 30,
2016. Total managed assets were up $17.5 billion or 5 percent from $349.7 billion at June 30,
2015 and down $2.5 billion or
1 percent from $369.7 billion at
March 31, 2016. Growth in equity
assets was offset by lower money market and fixed-income assets in
Q2 2016 compared to Q1 2016. Average managed assets for Q2 2016
were $364.2 billion, up $15.6 billion or 4 percent from $348.6 billion reported for Q2 2015 and up
slightly from $363.9 billion reported
for Q1 2016.
"Investors have sought income-oriented strategies against a
backdrop of challenging market conditions," said J. Christopher Donahue, president and chief
executive officer. "Federated is well-positioned, with a range of
strong-performing diversified income solutions, including a unique
stock and municipal-bond hybrid fund, our high-yield bond products
and especially the Strategic Value Dividend strategies, which
helped drive our record quarterly equity flows."
Federated's board of directors declared a dividend of
$0.25 per share. The dividend is
payable on Aug.15, 2016 to shareholders of record as of
Aug. 8, 2016. During Q2 2016,
Federated purchased 918,050 shares of Federated class B common
stock for $27.3 million.
Federated's equity assets were a record $61.9 billion at June 30,
2016, up $7.1 billion or 13
percent from $54.8 billion at
June 30, 2015 and up $5.4 billion or 10 percent from $56.5 billion at March 31,
2016. Top-selling equity funds during Q2 2016 on a net basis
were Federated Strategic Value Dividend Fund, Federated Prudent
Bear Fund, Federated International Strategic Value Dividend Fund,
Federated Muni and Stock Advantage Fund and Federated MDT Small Cap
Core Fund.
Federated's fixed-income assets were $50.3 billion at June 30,
2016, down $2.6 billion or 5
percent from $52.9 billion at
June 30, 2015 and down $0.9 billion or 2 percent from $51.2 billion at March 31,
2016. Top-selling fixed-income funds during Q2 2016 on a net
basis were Federated Institutional High Yield Bond Fund, Federated
Sterling Cash Plus Fund, Federated High Yield Trust, Federated
Short-Intermediate Duration Municipal Trust and Federated Municipal
High Yield Advantage Fund.
Money market assets were $255.0
billion at June 30, 2016, up
$13.0 billion or 5 percent from
$242.0 billion at June 30, 2015 and down $7.0 billion or 3 percent from $262.0 billion at March
31, 2016. Money market mutual fund assets were
$218.1 billion at June 30, 2016, up $9.3
billion or 4 percent from $208.8
billion at June 30, 2015 and
down $6.6 billion or 3 percent from
$224.7 billion at March 31, 2016.
Financial Summary
Q2 2016 vs. Q2 2015
Revenue increased by $58.6 million
or 26 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). See additional information about voluntary yield-related
fee waivers in the table at the end of this financial summary.
During Q2 2016, Federated derived 53 percent of its revenue from
equity and fixed-income assets (37 percent from equity assets and
16 percent from fixed-income assets) and 47 percent from money
market assets.
Operating expenses increased by $40.2
million or 25 percent primarily due to an increase in
distribution expenses as a result of a decrease in voluntary
yield-related fee waivers. The increase was partially offset
by a reduction in certain operating expenses, primarily
professional service fees, due to the recognition of $3.5 million in insurance proceeds in Q2
2016.
Q2 2016 vs. Q1 2016
Revenue increased by $14.6 million
or 5 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.
Operating expenses increased by $1.5
million or 1 percent primarily due to an increase in
distribution expenses as a result of a decrease in voluntary
yield-related fee waivers. The increase was partially offset by a
reduction in certain operating expenses, primarily professional
service fees, due to the recognition of $3.5
million in insurance proceeds in Q2 2016.
YTD 2016 vs. YTD 2015
Revenue increased by $110.2
million or 25 percent primarily due to a decrease in
voluntary yield-related fee waivers and an increase in revenue from
higher average money market assets. The increase in revenue was
partially offset by a decrease in revenue from lower average
fixed-income assets and a change in the mix of average equity
assets.
For the first half of 2016, Federated derived 53 percent of its
revenue from equity and fixed-income assets (37 percent from equity
assets and 16 percent from fixed-income assets) and 47 percent from
money market assets.
Operating expenses increased $76.3
million or 24 percent primarily due to an increase in
distribution expenses as a result of a decrease in voluntary
yield-related fee waivers.
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 and mix, 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, FSOC 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
Q2 2015 to Q2
2016
|
Quarter
Ended
|
Change
Q1 2016 to Q2
2016
|
Six Months
Ended
|
Change
YTD 2015 to YTD
2016
|
|
June 30,
2016
|
June 30,
2015
|
March 31,
2016
|
June
30, 2016
|
June
30, 2015
|
Investment advisory
fees
|
$
(6.2)
|
$
(53.4)
|
$
47.2
|
$
(15.0)
|
$
8.8
|
$
(21.2)
|
$
(115.7)
|
$
94.5
|
Other service
fees
|
(15.1)
|
(30.8)
|
15.7
|
(22.5)
|
7.4
|
(37.6)
|
(62.6)
|
25.0
|
Total
revenue
|
(21.3)
|
(84.2)
|
62.9
|
(37.5)
|
16.2
|
(58.8)
|
(178.3)
|
119.5
|
Less: Reduction
in distribution expense
|
16.5
|
60.2
|
(43.7)
|
27.9
|
(11.4)
|
44.4
|
124.8
|
(80.4)
|
Operating
income
|
(4.8)
|
(24.0)
|
19.2
|
(9.6)
|
4.8
|
(14.4)
|
(53.5)
|
39.1
|
Less:
(Increase)/Reduction in noncontrolling interest
|
(0.2)
|
1.8
|
(2.0)
|
0.2
|
(0.4)
|
0.0
|
4.3
|
(4.3)
|
Pre-tax
impact
|
$
(5.0)
|
$
(22.2)
|
$
17.2
|
$
(9.4)
|
$
4.4
|
$
(14.4)
|
$
(49.2)
|
$
34.8
|
Federated will host an earnings conference call at 9 a.m. Eastern on July 29,
2016. 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. on July 29, 2016 and through Aug. 5, 2016 by calling 877-660-6853 (domestic)
or 201-612-7415 (international) and entering access code
13640608.
Federated Investors, Inc. is one of the largest investment
managers in the United States,
managing $367.2 billion in assets as
of June 30, 2016. With 123 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 5 percent of money
market fund managers in the industry, the top 5 percent of equity
fund managers and the top 10 percent of fixed-income fund
managers1. For more information, visit
FederatedInvestors.com.
1) Strategic Insight, May
31, 2016. 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 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 2015 to Q2 2016
|
Quarter
Ended
|
%
Change Q1 2016 to
Q2 2016
|
|
June 30,
2016
|
June 30,
2015
|
March 31,
2016
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory
fees, net
|
$
192,663
|
$
154,429
|
25%
|
$
181,847
|
6%
|
Administrative service
fees, net—affiliates
|
53,131
|
51,605
|
3
|
53,473
|
(1)
|
Other service fees,
net
|
39,943
|
21,031
|
90
|
35,898
|
11
|
Other, net
|
1,001
|
1,062
|
(6)
|
891
|
12
|
Total
Revenue
|
286,738
|
228,127
|
26
|
272,109
|
5
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
Distribution
|
94,741
|
54,058
|
75
|
88,381
|
7
|
Compensation and
related
|
75,225
|
70,940
|
6
|
76,770
|
(2)
|
Systems and
communications
|
7,767
|
6,979
|
11
|
7,865
|
(1)
|
Office and
occupancy
|
6,675
|
6,710
|
(1)
|
6,888
|
(3)
|
Advertising and
promotional
|
3,938
|
3,504
|
12
|
3,442
|
14
|
Travel and
related
|
3,656
|
3,533
|
3
|
2,906
|
26
|
Professional service
fees
|
3,645
|
7,285
|
(50)
|
8,881
|
(59)
|
Other
|
3,421
|
5,839
|
(41)
|
2,421
|
41
|
Total Operating
Expenses
|
199,068
|
158,848
|
25
|
197,554
|
1
|
Operating
Income
|
87,670
|
69,279
|
27
|
74,555
|
18
|
|
|
|
|
|
|
Nonoperating Income
(Expenses)
|
|
|
|
|
|
Investment income,
net
|
1,105
|
410
|
170
|
2,664
|
(59)
|
Debt
expense
|
(1,020)
|
(974)
|
5
|
(1,059)
|
(4)
|
Other, net
|
(2)
|
(15)
|
(87)
|
(5)
|
(60)
|
Total Nonoperating
Income (Expenses), net
|
83
|
(579)
|
114
|
1,600
|
(95)
|
Income before income
taxes
|
87,753
|
68,700
|
28
|
76,155
|
15
|
Income tax
provision1
|
31,335
|
26,437
|
19
|
27,196
|
15
|
Net income including
the noncontrolling interests in subsidiaries
|
56,418
|
42,263
|
33
|
48,959
|
15
|
Less: Net income
attributable to the noncontrolling interests in
|
|
|
|
|
|
subsidiaries
|
3,709
|
504
|
NM
|
3,516
|
NM
|
Net Income
|
$
52,709
|
$
41,759
|
26%
|
$
45,443
|
16%
|
|
|
|
|
|
|
Amounts
Attributable to Federated Investors, Inc.
|
|
|
|
|
|
Earnings Per
Share 2
|
|
|
|
|
|
Basic and
diluted
|
$
0.51
|
$
0.40
|
28%
|
$ 0.44
|
16%
|
Weighted-average
shares outstanding
|
|
|
|
|
|
Basic
|
99,592
|
100,732
|
|
99,802
|
|
Diluted
|
99,593
|
100,734
|
|
99,803
|
|
Dividends declared
per share
|
$
0.25
|
$
0.25
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
1)
|
Federated adopted
Accounting Standards Update 2016-09, Compensation – Stock
Compensation (Topic 718): Improvements to Employee Share-Based
Payments Accounting, effective Jan. 1, 2016, which requires all
excess tax benefits and deficiencies to be recognized in the
income-tax provision. As a result of this adoption, the income-tax
provision for March 31, 2016 was reduced by $0.2 million from
amounts previously reported.
|
2)
|
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 $2.1 million, $1.7 million
and $1.8 million available to unvested restricted shareholders for
the quarterly periods ended June 30, 2016, June 30, 2015 and March
31, 2016, 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,
2016
|
June 30,
2015
|
% Change
|
Revenue
|
|
|
Investment advisory
fees, net
|
$
374,510
|
$
300,987
|
24%
|
Administrative service
fees, net - affiliates
|
106,604
|
104,622
|
2
|
Other service fees,
net
|
75,841
|
40,817
|
86
|
Other, net
|
1,892
|
2,223
|
(15)
|
Total
Revenue
|
558,847
|
448,649
|
25
|
|
|
|
Operating
Expenses
|
|
|
Distribution
|
183,122
|
107,553
|
70
|
Compensation and
related
|
151,995
|
147,438
|
3
|
Systems and
communications
|
15,632
|
13,849
|
13
|
Office and
occupancy
|
13,563
|
13,563
|
0
|
Professional service
fees
|
12,526
|
15,167
|
(17)
|
Advertising and
promotional
|
7,380
|
6,975
|
6
|
Travel and
related
|
6,562
|
6,291
|
4
|
Other
|
5,842
|
9,496
|
(38)
|
Total Operating
Expenses
|
396,622
|
320,332
|
24
|
Operating
Income
|
162,225
|
128,317
|
26
|
|
|
|
Nonoperating Income
(Expenses)
|
|
|
Investment income,
net
|
3,769
|
1,300
|
190
|
Debt
expense
|
(2,079)
|
(2,347)
|
(11)
|
Other, net
|
(7)
|
(28)
|
(75)
|
Total Nonoperating
Income (Expenses), net
|
1,683
|
(1,075)
|
257
|
Income before income
taxes
|
163,908
|
127,242
|
29
|
Income tax
provision
|
58,531
|
48,561
|
21
|
Net income including
the noncontrolling interests in subsidiaries
|
105,377
|
78,681
|
34
|
Less: Net income
attributable to the noncontrolling interests in
subsidiaries
|
7,225
|
615
|
NM
|
Net Income
|
$
98,152
|
$
78,066
|
26%
|
|
|
|
|
Amounts
Attributable to Federated Investors, Inc.
|
|
|
|
Earnings Per
Share1
|
|
|
|
Basic and
diluted
|
$
0.94
|
$
0.74
|
27%
|
Weighted-average
shares outstanding
|
|
|
|
Basic
|
99,697
|
100,686
|
|
Diluted
|
99,698
|
100,688
|
|
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 $3.9 million and $3.1million
available to unvested restricted shareholders for the six months
ended June 30, 2016 and June 30, 2015, respectively, was excluded
from the computation of earnings per share.
|
Unaudited
Condensed Consolidated Balance Sheets (in thousands)
|
|
June 30,
2016
|
Dec. 31,
2015
|
Assets
|
|
|
Cash and other
investments
|
$
352,451
|
$
346,815
|
Other current
assets
|
53,988
|
49,013
|
Intangible assets, net
and goodwill
|
733,554
|
734,492
|
Other long-term
assets
|
59,844
|
56,883
|
Total
Assets
|
$
1,199,837
|
$
1,187,203
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests and Equity
|
|
|
Current
liabilities
|
$
135,076
|
$
159,208
|
Long-term
debt
|
178,500
|
191,250
|
Other long-term
liabilities
|
187,484
|
179,039
|
Redeemable
noncontrolling interests
|
29,670
|
8,734
|
Equity excluding
treasury stock
|
888,723
|
840,911
|
Treasury
stock
|
(219,616)
|
(191,939)
|
Total Liabilities,
Redeemable Noncontrolling Interests and Equity
|
$
1,199,837
|
$
1,187,203
|
Unaudited
Changes in Equity and Fixed-Income Fund and Separate Account
Assets
|
(in
millions)
|
|
|
Quarter
Ended
|
Six Months
Ended
|
|
June 30,
2016
|
March 31,
2016
|
June 30,
2015
|
June 30,
2016
|
June 30,
2015
|
Equity
funds
|
|
Beginning
assets
|
$
34,935
|
$
34,125
|
$
34,951
|
$
34,125
|
$
33,141
|
Sales
|
3,117
|
3,439
|
2,389
|
6,556
|
5,194
|
Redemptions
|
(2,294)
|
(2,520)
|
(1,923)
|
(4,814)
|
(3,837)
|
Net sales
|
823
|
919
|
466
|
1,742
|
1,357
|
Net
exchanges
|
(16)
|
(37)
|
6
|
(53)
|
45
|
Market gains and
losses/reinvestments1
|
1,334
|
(72)
|
110
|
1,262
|
990
|
Ending
assets
|
$
37,076
|
$
34,935
|
$
35,533
|
$
37,076
|
$
35,533
|
Equity separate
accounts2
|
|
Beginning
assets
|
$
21,550
|
$
19,431
|
$
19,086
|
$
19,431
|
$
18,285
|
Sales3
|
3,156
|
2,350
|
1,449
|
5,506
|
3,142
|
Redemptions3
|
(1,153)
|
(1,229)
|
(1,084)
|
(2,382)
|
(2,038)
|
Net
sales3
|
2,003
|
1,121
|
365
|
3,124
|
1,104
|
Market gains and
losses4
|
1,232
|
998
|
(195)
|
2,230
|
(133)
|
Ending
assets
|
$
24,785
|
$
21,550
|
$
19,256
|
$
24,785
|
$
19,256
|
Total
equity2
|
|
Beginning
assets
|
$
56,485
|
$
53,556
|
$
54,037
|
$
53,556
|
$
51,426
|
Sales3
|
6,273
|
5,789
|
3,838
|
12,062
|
8,336
|
Redemptions3
|
(3,447)
|
(3,749)
|
(3,007)
|
(7,196)
|
(5,875)
|
Net
sales3
|
2,826
|
2,040
|
831
|
4,866
|
2,461
|
Net
exchanges
|
(16)
|
(37)
|
6
|
(53)
|
45
|
Market gains and
losses/reinvestments1
|
2,566
|
926
|
(85)
|
3,492
|
857
|
Ending
assets
|
$
61,861
|
$
56,485
|
$
54,789
|
$
61,861
|
$
54,789
|
|
|
Fixed-income
funds
|
|
Beginning
assets
|
$
37,826
|
$
37,989
|
$
41,039
|
$
37,989
|
$
40,456
|
Sales
|
3,467
|
3,334
|
3,251
|
6,801
|
7,742
|
Redemptions
|
(3,364)
|
(4,080)
|
(4,004)
|
(7,444)
|
(8,197)
|
Net sales
(redemptions)
|
103
|
(746)
|
(753)
|
(643)
|
(455)
|
Net
exchanges
|
18
|
(49)
|
(22)
|
(31)
|
(59)
|
Market gains and
losses/reinvestments1
|
664
|
632
|
(222)
|
1,296
|
100
|
Ending
assets
|
$
38,611
|
$
37,826
|
$
40,042
|
$
38,611
|
$
40,042
|
Fixed-income
separate accounts2
|
|
Beginning
assets
|
$
13,352
|
$
13,130
|
$
12,523
|
$
13,130
|
$
12,251
|
Sales3
|
147
|
197
|
754
|
344
|
993
|
Redemptions3
|
(2,105)
|
(328)
|
(277)
|
(2,433)
|
(481)
|
Net (redemptions)
sales3
|
(1,958)
|
(131)
|
477
|
(2,089)
|
512
|
Market gains and
losses4
|
320
|
353
|
(138)
|
673
|
99
|
Ending
assets
|
$
11,714
|
$
13,352
|
$
12,862
|
$
11,714
|
$
12,862
|
Total fixed
income2
|
|
Beginning
assets
|
$
51,178
|
$
51,119
|
$
53,562
|
$
51,119
|
$
52,707
|
Sales3
|
3,614
|
3,531
|
4,005
|
7,145
|
8,735
|
Redemptions3
|
(5,469)
|
(4,408)
|
(4,281)
|
(9,877)
|
(8,678)
|
Net (redemptions)
sales3
|
(1,855)
|
(877)
|
(276)
|
(2,732)
|
57
|
Net
exchanges
|
18
|
(49)
|
(22)
|
(31)
|
(59)
|
Market gains and
losses/reinvestments1
|
984
|
985
|
(360)
|
1,969
|
199
|
Ending
assets
|
$
50,325
|
$
51,178
|
$
52,904
|
$
50,325
|
$
52,904
|
|
|
|
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)
|
|
|
|
|
Quarter
Ended
|
Six Months
Ended
|
|
June 30,
2016
|
March 31,
2016
|
June 30,
2015
|
June 30,
2016
|
June 30,
2015
|
Funds
|
|
|
|
|
|
Beginning
assets
|
$
72,761
|
$
72,114
|
$
75,990
|
$
72,114
|
$
73,597
|
Sales
|
6,584
|
6,773
|
5,640
|
13,357
|
12,936
|
Redemptions
|
(5,658)
|
(6,600)
|
(5,927)
|
(12,258)
|
(12,034)
|
Net sales
(redemptions)
|
926
|
173
|
(287)
|
1,099
|
902
|
Net
exchanges
|
2
|
(86)
|
(16)
|
(84)
|
(14)
|
Market gains and
losses/reinvestments1
|
1,998
|
560
|
(112)
|
2,558
|
1,090
|
Ending
assets
|
$
75,687
|
$
72,761
|
$
75,575
|
$
75,687
|
$
75,575
|
Separate
accounts2
|
|
|
|
|
|
Beginning
assets
|
$
34,902
|
$
32,561
|
$
31,609
|
$
32,561
|
$
30,536
|
Sales3
|
3,303
|
2,547
|
2,203
|
5,850
|
4,135
|
Redemptions3
|
(3,258)
|
(1,557)
|
(1,361)
|
(4,815)
|
(2,519)
|
Net
sales3
|
45
|
990
|
842
|
1,035
|
1,616
|
Market gains and
losses4
|
1,552
|
1,351
|
(333)
|
2,903
|
(34)
|
Ending
assets
|
$
36,499
|
$
34,902
|
$
32,118
|
$
36,499
|
$
32,118
|
Total assets
2
|
|
Beginning
assets
|
$
107,663
|
$
104,675
|
$
107,599
|
$
104,675
|
$
104,133
|
Sales3
|
9,887
|
9,320
|
7,843
|
19,207
|
17,071
|
Redemptions3
|
(8,916)
|
(8,157)
|
(7,288)
|
(17,073)
|
(14,553)
|
Net
sales3
|
971
|
1,163
|
555
|
2,134
|
2,518
|
Net
exchanges
|
2
|
(86)
|
(16)
|
(84)
|
(14)
|
Market gains and
losses/reinvestments1
|
3,550
|
1,911
|
(445)
|
5,461
|
1,056
|
Ending
assets
|
$
112,186
|
$
107,663
|
$
107,693
|
$
112,186
|
$
107,693
|
|
|
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,
2016
|
March 31,
2016
|
Dec. 31,
2015
|
Sept. 30,
2015
|
June 30,
2015
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
61,861
|
$
56,485
|
$
53,556
|
$
51,956
|
$
54,789
|
Fixed-income
|
50,325
|
51,178
|
51,119
|
52,065
|
52,904
|
Money
market
|
254,992
|
262,030
|
256,437
|
246,937
|
241,982
|
Total Managed
Assets
|
$
367,178
|
$
369,693
|
$
361,112
|
$
350,958
|
$
349,675
|
By Product
Type
|
|
|
|
|
|
Funds:
|
Equity
|
$
37,076
|
$
34,935
|
$
34,125
|
$
33,273
|
$
35,533
|
Fixed-income
|
38,611
|
37,826
|
37,989
|
38,982
|
40,042
|
Money
market
|
218,107
|
224,681
|
221,615
|
216,252
|
208,786
|
Total Fund
Assets
|
$
293,794
|
$
297,442
|
$
293,729
|
$
288,507
|
$
284,361
|
|
Separate
accounts:
|
|
|
|
|
|
Equity
|
$
24,785
|
$
21,550
|
$
19,431
|
$
18,683
|
$
19,256
|
Fixed-income
|
11,714
|
13,352
|
13,130
|
13,083
|
12,862
|
Money
market
|
36,885
|
37,349
|
34,822
|
30,685
|
33,196
|
Total Separate
Accounts
|
$
73,384
|
$
72,251
|
$
67,383
|
$
62,451
|
$
65,314
|
Total Managed
Assets
|
$
367,178
|
$
369,693
|
$
361,112
|
$
350,958
|
$
349,675
|
AVERAGE MANAGED
ASSETS
|
|
|
Quarter
Ended
|
|
(in
millions)
|
June 30,
2016
|
March 31,
2016
|
Dec. 31,
2015
|
Sept. 30,
2015
|
June 30,
2015
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
58,680
|
$
52,786
|
$
54,097
|
$
54,238
|
$
55,476
|
Fixed-income
|
50,793
|
50,880
|
51,922
|
52,577
|
53,319
|
Money
market
|
254,693
|
260,203
|
247,986
|
245,133
|
239,774
|
Total Avg.
Assets
|
$
364,166
|
$
363,869
|
$
354,005
|
$
351,948
|
$
348,569
|
By Product
Type
|
|
|
|
|
|
Funds:
|
Equity
|
$
35,891
|
$
32,921
|
$
34,726
|
$
35,181
|
$
35,998
|
Fixed-income
|
38,214
|
37,776
|
38,779
|
39,526
|
40,574
|
Money
market
|
217,226
|
221,848
|
217,031
|
213,633
|
205,943
|
Total Avg. Fund
Assets
|
$
291,331
|
$
292,545
|
$
290,536
|
$
288,340
|
$
282,515
|
Separate
accounts:
|
|
|
|
|
|
Equity
|
$
22,789
|
$
19,865
|
$
19,371
|
$
19,057
|
$
19,478
|
Fixed-income
|
12,579
|
13,104
|
13,143
|
13,051
|
12,745
|
Money
market
|
37,467
|
38,355
|
30,955
|
31,500
|
33,831
|
Total Avg. Separate
Accounts
|
$
72,835
|
$
71,324
|
$
63,469
|
$
63,608
|
$
66,054
|
Total Avg. Managed
Assets
|
$
364,166
|
$
363,869
|
$
354,005
|
$
351,948
|
$
348,569
|
(unaudited)
|
AVERAGE MANAGED
ASSETS
|
Six Months
Ended
|
(in
millions)
|
June 30,
2016
|
June 30,
2015
|
By Asset
Class
|
|
|
Equity
|
$
55,733
|
$
54,130
|
Fixed-income
|
50,836
|
53,362
|
Money market
|
257,448
|
246,518
|
Total Avg.
Assets
|
$
364,017
|
$
354,010
|
By Product
Type
|
Funds:
|
|
|
Equity
|
$
34,406
|
$
35,080
|
Fixed-income
|
37,995
|
40,793
|
Money
market
|
219,537
|
212,056
|
Total Avg. Fund
Assets
|
$
291,938
|
$
287,929
|
Separate
accounts:
|
Equity
|
$
21,327
|
$
19,050
|
Fixed-income
|
12,841
|
12,569
|
Money
market
|
37,911
|
34,462
|
Total Avg. Separate
Accounts
|
$
72,079
|
$
66,081
|
Total Avg. Managed
Assets
|
$
364,017
|
$
354,010
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/federated-investors-inc-reports-second-quarter-2016-earnings-300305879.html
SOURCE Federated Investors, Inc.