PITTSBURGH, Oct. 27, 2016 /PRNewswire/ -- Federated
Investors, Inc. (NYSE: FII), one of the nation's largest investment
managers, today reported earnings per diluted share (EPS) of
$0.54 for Q3 2016, compared to
$0.42 for the same quarter last year
on net income of $54.9 million for Q3
2016, compared to $44.1 million for
Q3 2015. Federated reported YTD 2016 EPS of $1.48, compared to $1.17 for the same period in 2015 on YTD 2016 net
income of $153.1 million compared to
$122.2 million for the same period
last year.
Federated's total managed assets were $364.3 billion at Sept.
30, 2016. Total managed assets were up $13.3 billion or 4 percent from $351.0 billion at Sept.
30, 2015 and down $2.9 billion
or 1 percent from $367.2 billion at
June 30, 2016. Growth in equity and
fixed-income assets was offset by lower money market assets at the
end of Q3 2016 compared to the end of Q2 2016.
Average managed assets for Q3 2016 were $365.4 billion, up $13.5
billion or 4 percent from $351.9
billion reported for Q3 2015 and up $1.2 billion from $364.2
billion reported for Q2 2016.
"Federated benefited in the third quarter from continued demand
for our range of high-quality income-oriented products," said
J. Christopher Donahue, president
and chief executive officer. "Equity assets increased 23 percent
over the past 12 months, driven by substantial flows into our
dividend-driven strategies. Meanwhile, fixed-income investors
sought the Federated Total Return Bond Fund, a multi-sector core
bond strategy with strong long-term performance, as well as our
high-yield offerings."
Federated's board of directors added an independent director
with the election of Joseph C.
Bartolacci, appointing him to Federated's Audit,
Compensation and Compliance committees. Since 2006, Bartolacci has
served as president and chief executive officer of publicly traded
Matthews International Corporation, a global provider of brand
solutions, memorialization products and industrial products with
more than 10,000 employees in more than 25 countries. He brings to
the board more than 30 years of domestic and international business
management experience. He has served as corporate legal counsel,
and he has a background in accounting, tax and auditing. Bartolacci
earned a bachelor's degree in accounting from St. Vincent College and a juris doctor degree from
The University of Pittsburgh School of
Law. He also serves on the boards of directors of Matthews, the
Jas. H. Matthews & Co. Educational and Charitable Trust and
Saint Vincent College.
Federated's board of directors declared a dividend of
$1.25 per share. The dividend, which
will be paid from Federated's existing cash balance, is considered
an ordinary dividend for tax purposes and consists of a
$0.25 quarterly dividend and a
$1.00 special dividend. The dividend
is payable on Nov. 15, 2016 to
shareholders of record as of Nov. 8,
2016. During Q3 2016, Federated purchased 906,454 shares of
Federated class B common stock for $23.1
million. Also on Oct. 27,
2016, the company's board of directors authorized a new
share repurchase program, which allows Federated to repurchase up
to 4 million additional shares of class B common stock in the open
market with no expiration date. The repurchased stock is to
be held in treasury for employee share-based compensation plans,
potential acquisitions and other corporate activities. The
company's existing share repurchase program, which also has no
stated expiration date, remains in effect with approximately
537,000 shares available.
"The November special dividend payment marks our fourth in eight
years and brings the special-dividends total since 2008 to
$6.53 per share," said Thomas R. Donahue, chief financial officer. "The
special dividend and the new share repurchase program further
emphasize Federated's commitment to shareholder value."
Asset Summary
Federated's equity assets were a record $64.1 billion at Sept. 30,
2016, up $12.1 billion or 23
percent from $52.0 billion at
Sept. 30, 2015 and up $2.2 billion or 4 percent from $61.9 billion at June 30,
2016. Top-selling equity funds during Q3 2016 on a net basis
were Federated Strategic Value Dividend Fund, Federated
International Strategic Value Dividend Fund, Federated Muni and
Stock Advantage Fund, Federated Strategic Value U.S. Equity
Dividend Fund and Federated MDT Small Cap Core Fund.
Federated's fixed-income assets were $51.8 billion at Sept. 30,
2016, down slightly from $52.1
billion at Sept. 30, 2015 and
up $1.5 billion or 3 percent from
$50.3 billion at June 30, 2016. Top-selling fixed-income funds
during Q3 2016 on a net basis were Federated Total Return Bond
Fund, Federated Institutional High Yield Bond Fund, Federated
Sterling Cash Plus Fund, Federated Government Ultrashort Duration
Fund and Federated Short-Intermediate Duration Municipal Trust.
Money market assets were $248.4
billion at Sept. 30, 2016, up
$1.5 billion or 1 percent from
$246.9 billion at Sept. 30, 2015 and down $6.6 billion or 3 percent from $255.0 billion at June 30,
2016. Money market fund assets were $209.4 billion at Sept.
30, 2016, down $6.9 billion or
3 percent from $216.3 billion at
Sept. 30, 2015 and down $8.7 billion or 4 percent from $218.1 billion at June 30,
2016.
Financial Summary
Q3 2016 vs. Q3 2015
Revenue increased by $60.3 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), as well as an increase in revenue from higher average
equity assets. This was partially offset by a decrease in revenue
due to a change in the mix of average money market assets. See
additional information about voluntary yield-related fee waivers in
the table at the end of this financial summary.
During Q3 2016, Federated derived 55 percent of its revenue from
equity and fixed-income assets (39 percent from equity assets and
16 percent from fixed-income assets) and 45 percent from money
market assets.
Operating expenses increased by $45.9
million or 29 percent primarily due to an increase in
distribution expenses as a result of a decrease in voluntary
yield-related fee waivers.
Nonoperating income (expenses), net increased $6.9 million primarily due to an increase in net
investment income due to an increase in the market value of trading
securities in Q3 2016 as compared to a decrease in the market value
of trading securities in Q3 2015.
Q3 2016 vs. Q2 2016
Revenue increased by $7.9 million
or 3 percent primarily due to higher average equity assets, one
additional day in Q3 compared to Q2, a decrease in voluntary
yield-related fee waivers and higher average fixed-income assets.
This was partially offset by a decrease in revenue from lower
average money market assets.
Operating expenses increased by $6.9
million or 3 percent primarily due to an increase in
distribution expenses as a result of a decrease in voluntary
yield-related fee waivers and an increase in certain operating
expenses, primarily professional service fees, due to the
recognition of $3.5 million in
insurance proceeds in Q2 2016.
Nonoperating income (expenses), net increased $2.8 million primarily due to an increase in net
investment income primarily due to losses recorded on
available-for-sale securities in Q2 2016.
YTD 2016 vs. YTD 2015
Revenue increased by $170.5
million or 25 percent primarily due to a decrease in
voluntary yield-related fee waivers. The increase in revenue was
partially offset by a decrease in revenue from lower average
fixed-income assets.
For the first nine months of 2016, Federated derived 54 percent
of its revenue from equity and fixed-income assets (38 percent from
equity assets and 16 percent from fixed-income assets) and 46
percent from money market assets.
Operating expenses increased $122.2
million or 25 percent primarily due to an increase in
distribution expenses as a result of a decrease in voluntary
yield-related fee waivers.
Nonoperating income (expenses), net increased $9.7 million primarily due to an increase in net
investment income resulting from an increase in the market value of
trading securities in 2016, as compared to a decrease in the market
value of trading securities in 2015.
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 their resulting negative
impact 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 2015 to
Q3 2016
|
Quarter
Ended
|
Change
Q2 2016
to
Q3 2016
|
Nine Months Ended
|
Change
YTD 2015
to YTD
2016
|
|
Sept. 30,
2016
|
Sept. 30,
2015
|
June 30,
2016
|
Sept. 30,
2016
|
Sept. 30,
2015
|
|
Investment advisory
fees
|
$
(5.1)
|
$
(49.3)
|
$
44.2
|
$
(6.2)
|
$
1.1
|
$
(26.3)
|
$
(165.0)
|
$
138.7
|
|
Other service
fees
|
(12.9)
|
(34.0)
|
21.1
|
(15.1)
|
2.2
|
(50.5)
|
(96.6)
|
46.1
|
|
Total
revenue
|
(18.0)
|
(83.3)
|
65.3
|
(21.3)
|
3.3
|
(76.8)
|
(261.6)
|
184.8
|
|
Less: Reduction
in
distribution expense
|
13.8
|
61.3
|
(47.5)
|
16.5
|
(2.7)
|
58.2
|
186.1
|
(127.9)
|
|
Operating
income
|
(4.2)
|
(22.0)
|
17.8
|
(4.8)
|
0.6
|
(18.6)
|
(75.5)
|
56.9
|
|
Less:
Reduction/(Increase)
in noncontrolling interest
|
0.0
|
1.7
|
(1.7)
|
(0.2)
|
0.2
|
0.0
|
6.0
|
(6.0)
|
|
Pre-tax
impact
|
$
(4.2)
|
$
(20.3)
|
$
16.1
|
$
(5.0)
|
$
0.8
|
$
(18.6)
|
$
(69.5)
|
$
50.9
|
Federated will host an earnings conference call at 9 a.m. Eastern on Oct. 28,
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 Oct. 28, 2016 and through Nov. 4, 2016 by calling 877-660-6853 (domestic)
or 201-612-7415 (international) and entering access code
13647405.
Federated Investors, Inc. is one of the largest investment
managers in the United States,
managing $364.3 billion in assets as
of Sept. 30, 2016. With 123 funds and
a variety of separately managed account options, Federated provides
comprehensive investment management to approximately 8,500
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 10 percent of fixed-income fund
managers1. For more information, visit
FederatedInvestors.com.
1) Strategic Insight, Aug. 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, contributions of directors, 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
Q3 2015 to
Q3 2016
|
Quarter
Ended
|
% Change
Q3 2016 to
Q3 2016
|
|
Revenue
|
Sept. 30,
2016
|
Sept. 30,
2015
|
|
June 30,
2016
|
|
|
Investment advisory
fees, net
|
$
197,253
|
$
158,898
|
24%
|
$
192,663
|
2%
|
|
Administrative service
fees, net—affiliates
|
53,577
|
53,275
|
1
|
53,131
|
1
|
|
Other service fees,
net
|
42,734
|
21,198
|
102
|
39,943
|
7
|
|
Other, net
|
1,056
|
950
|
11
|
1,001
|
5
|
|
Total
Revenue
|
294,620
|
234,321
|
26
|
286,738
|
3
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Distribution
|
98,740
|
58,823
|
68
|
94,741
|
4
|
|
Compensation and
related
|
75,731
|
70,624
|
7
|
75,225
|
1
|
|
Systems and
communications
|
7,763
|
6,684
|
16
|
7,767
|
0
|
|
Professional service
fees
|
7,360
|
7,823
|
(6)
|
3,645
|
102
|
|
Office and
occupancy
|
6,660
|
6,552
|
2
|
6,675
|
0
|
|
Advertising and
promotional
|
3,371
|
3,310
|
2
|
3,938
|
(14)
|
|
Travel and
related
|
3,165
|
3,183
|
(1)
|
3,656
|
(13)
|
|
Other
|
3,194
|
3,078
|
4
|
3,421
|
(7)
|
|
Total
Operating Expenses
|
205,984
|
160,077
|
29
|
199,068
|
3
|
|
Operating
Income
|
88,636
|
74,244
|
19
|
87,670
|
1
|
|
|
|
|
|
|
|
Nonoperating Income
(Expenses)
|
|
|
|
|
|
|
Investment income
(loss), net
|
3,889
|
(3,049)
|
228
|
1,105
|
252
|
|
Debt
expense
|
(1,039)
|
(979)
|
6
|
(1,020)
|
2
|
|
Other, net
|
19
|
(8)
|
338
|
(2)
|
NM
|
|
Total Nonoperating
Income (Expenses), net
|
2,869
|
(4,036)
|
171
|
83
|
NM
|
|
Income before income
taxes
|
91,505
|
70,208
|
30
|
87,753
|
4
|
|
Income tax
provision
|
32,597
|
26,072
|
25
|
31,335
|
4
|
|
Net income including
the noncontrolling interests in subsidiaries
|
58,908
|
44,136
|
33
|
56,418
|
4
|
|
Less: Net
income attributable to the noncontrolling interests in
|
|
|
|
|
|
|
subsidiaries
|
3,983
|
5
|
NM
|
3,709
|
NM
|
|
Net Income
|
$
54,925
|
$
44,131
|
24%
|
$
52,709
|
4%
|
|
|
|
|
|
|
|
Amounts
Attributable to Federated Investors, Inc.
|
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
|
Basic and
diluted
|
$
0.54
|
0.42
|
29%
|
$ 0.51
|
6%
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
|
Basic
|
98,805
|
100,449
|
|
99,592
|
|
|
Diluted
|
98,806
|
100,451
|
|
99,593
|
|
|
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 $2.0 million, $1.7 million
and $2.1 million available to unvested restricted shareholders for
the quarterly periods ended Sept. 30, 2016, Sept. 30, 2015 and June
30, 2016, 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,
2016
|
Sept. 30,
2015
|
%
Change
|
|
Revenue
|
|
|
|
|
Investment advisory
fees, net
|
$
571,762
|
$
459,885
|
24%
|
|
Administrative
service fees, net - affiliates
|
160,181
|
157,897
|
1
|
|
Other service fees,
net
|
118,575
|
62,014
|
91
|
|
Other, net
|
2,949
|
3,174
|
(7)
|
|
Total
Revenue
|
853,467
|
682,970
|
25
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
Compensation and
related
|
227,726
|
218,062
|
4
|
|
Distribution
|
281,862
|
166,376
|
69
|
|
Systems and
communications
|
23,395
|
20,533
|
14
|
|
Office and
occupancy
|
20,223
|
20,115
|
1
|
|
Professional service
fees
|
19,886
|
22,990
|
(14)
|
|
Advertising and
promotional
|
10,751
|
10,285
|
5
|
|
Travel and
related
|
9,727
|
9,474
|
3
|
|
Other
|
9,036
|
12,574
|
(28)
|
|
Total Operating
Expenses
|
602,606
|
480,409
|
25
|
|
Operating
Income
|
250,861
|
202,561
|
24
|
|
|
|
|
|
Nonoperating
Income (Expenses)
|
|
|
|
|
Investment income
(loss), net
|
7,657
|
(1,749)
|
538
|
|
Debt
expense
|
(3,118)
|
(3,325)
|
(6)
|
|
Other, net
|
13
|
(37)
|
135
|
|
Total Nonoperating
Income (Expenses), net
|
4,552
|
(5,111)
|
189
|
|
Income before income
taxes
|
255,413
|
197,450
|
29
|
|
Income tax
provision
|
91,128
|
74,633
|
22
|
|
Net income including
the noncontrolling interests in subsidiaries
|
$
164,285
|
$
122,817
|
34
|
|
Less:
Net income attributable to the noncontrolling interests in
subsidiaries
|
11,208
|
620
|
NM
|
|
Net Income
|
$
153,077
|
$
122,197
|
25%
|
|
|
|
|
|
Amounts
Attributable to Federated Investors, Inc.
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
Basic and
diluted
|
$
1.48
|
$
1.17
|
26 %
|
|
Weighted-average
shares outstanding
|
|
|
|
|
Basic
|
99,397
|
100,606
|
|
|
Diluted
|
99,398
|
100,607
|
|
|
Dividends declared
per share
|
$
0.75
|
$
0.75
|
|
|
|
|
|
|
1) Unvested
share-based payment 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 $6.0 million
and $4.8 million available to unvested restricted shareholders for
the nine months ended Sept. 30, 2016 and Sept. 30, 2015,
respectively, was excluded from the computation of earnings per
share.
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
|
Sept. 30,
2016
|
Dec. 31,
2015
|
|
Assets
|
|
|
|
Cash and other
investments
|
$
380,508
|
$
346,815
|
|
Other current
assets
|
51,983
|
49,013
|
|
Intangible assets,
net and goodwill
|
733,326
|
734,492
|
|
Other long-term
assets
|
64,700
|
56,883
|
|
Total
Assets
|
$
1,230,517
|
$
1,187,203
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests and Equity
|
|
|
|
Current
liabilities
|
$
152,334
|
$
159,208
|
|
Long-term
debt
|
172,125
|
191,250
|
|
Other long-term
liabilities
|
195,220
|
179,039
|
|
Redeemable
noncontrolling interests
|
29,945
|
8,734
|
|
Equity excluding
treasury stock
|
923,596
|
840,911
|
|
Treasury
stock
|
(242,703)
|
(191,939)
|
|
Total Liabilities,
Redeemable Noncontrolling Interests and Equity
|
$
1,230,517
|
$
1,187,203
|
|
Unaudited
Changes in Equity and Fixed-Income Fund and Separate Account
Assets
|
|
(in
millions)
|
|
|
|
|
|
|
Quarter
Ended
|
Nine Months
Ended
|
|
Sept. 30,
2016
|
June 30,
2016
|
Sept. 30,
2015
|
Sept. 30,
2016
|
Sept. 30,
2015
|
|
Equity
funds
|
|
|
|
|
|
|
Beginning
assets
|
$
37,076
|
$
34,935
|
$
35,533
|
$
34,125
|
$
33,141
|
|
Sales
|
3,011
|
3,117
|
2,464
|
9,567
|
7,658
|
|
Redemptions
|
(2,883)
|
(2,294)
|
(2,043)
|
(7,697)
|
(5,880)
|
|
Net
sales
|
128
|
823
|
421
|
1,870
|
1,778
|
|
Net
exchanges
|
(26)
|
(16)
|
(110)
|
(79)
|
(65)
|
|
Market gains and
losses/reinvestments1
|
599
|
1,334
|
(2,571)
|
1,861
|
(1,581)
|
|
Ending
assets
|
$
37,777
|
$
37,076
|
$
33,273
|
$
37,777
|
$
33,273
|
|
|
|
|
|
|
|
Equity separate
accounts2
|
|
|
|
|
|
|
Beginning
assets
|
$
24,785
|
$
21,550
|
$
19,256
|
$
19,431
|
$
18,285
|
|
Sales3
|
2,968
|
3,156
|
1,456
|
8,474
|
4,598
|
|
Redemptions3
|
(1,262)
|
(1,153)
|
(1,350)
|
(3,644)
|
(3,388)
|
|
Net
sales3
|
1,706
|
2,003
|
106
|
4,830
|
1,210
|
|
Net
exchanges
|
1
|
—
|
(1)
|
1
|
(1)
|
|
Market gains and
losses4
|
(155)
|
1,232
|
(678)
|
2,075
|
(811)
|
|
Ending
assets
|
$
26,337
|
$
24,785
|
$
18,683
|
$
26,337
|
$
18,683
|
|
|
|
|
|
|
|
Total
Equity2
|
|
|
|
|
|
|
Beginning
assets
|
$
61,861
|
$
56,485
|
$
54,789
|
$
53,556
|
$
51,426
|
|
Sales3
|
5,979
|
6,273
|
3,920
|
18,041
|
12,256
|
|
Redemptions3
|
(4,145)
|
(3,447)
|
(3,393)
|
(11,341)
|
(9,268)
|
|
Net
sales3
|
1,834
|
2,826
|
527
|
6,700
|
2,988
|
|
Net
exchanges
|
(25)
|
(16)
|
(111)
|
(78)
|
(66)
|
|
Market gains and
losses/reinvestments1
|
444
|
2,566
|
(3,249)
|
3,936
|
(2,392)
|
|
Ending
assets
|
$
64,114
|
$
61,861
|
$
51,956
|
$
64,114
|
$
51,956
|
|
|
|
|
|
|
|
Fixed-income
funds
|
|
|
|
|
|
|
Beginning
assets
|
$
38,611
|
$
37,826
|
$
40,042
|
$
37,989
|
$
40,456
|
|
Sales
|
3,641
|
3,467
|
3,277
|
10,442
|
11,019
|
|
Redemptions
|
(2,971)
|
(3,364)
|
(4,173)
|
(10,415)
|
(12,370)
|
|
Net sales
(redemptions)
|
670
|
103
|
(896)
|
27
|
(1,351)
|
|
Net
exchanges
|
19
|
18
|
90
|
(12)
|
31
|
|
Market gains and
losses/reinvestments1
|
496
|
664
|
(254)
|
1,792
|
(154)
|
|
Ending
assets
|
$
39,796
|
$
38,611
|
$
38,982
|
$
39,796
|
$
38,982
|
|
|
|
|
|
|
|
Fixed-income
separate accounts2
|
|
|
|
|
|
|
Beginning
assets
|
$
11,714
|
$
13,352
|
$
12,862
|
$
13,130
|
$
12,251
|
|
Sales3
|
360
|
147
|
638
|
704
|
1,631
|
|
Redemptions3
|
(284)
|
(2,105)
|
(336)
|
(2,717)
|
(817)
|
|
Net sales
(redemptions)3
|
76
|
(1,958)
|
302
|
(2,013)
|
814
|
|
Net
exchanges
|
—
|
—
|
(6)
|
—
|
(6)
|
|
Market gains and
losses4
|
258
|
320
|
(75)
|
931
|
24
|
|
Ending
assets
|
$
12,048
|
$
11,714
|
$
13,083
|
$
12,048
|
$
13,083
|
|
|
|
|
|
|
|
Total fixed
income2
|
|
|
|
|
|
|
Beginning
assets
|
$
50,325
|
$
51,178
|
$
52,904
|
$
51,119
|
$
52,707
|
|
Sales3
|
4,001
|
3,614
|
3,915
|
11,146
|
12,650
|
|
Redemptions3
|
(3,255)
|
(5,469)
|
(4,509)
|
(13,132)
|
(13,187)
|
|
Net sales
(redemptions)3
|
746
|
(1,855)
|
(594)
|
(1,986)
|
(537)
|
|
Net
exchanges
|
19
|
18
|
84
|
(12)
|
25
|
|
Market gains and
losses/reinvestments1
|
754
|
984
|
(329)
|
2,723
|
(130)
|
|
Ending
assets
|
$
51,844
|
$
50,325
|
$
52,065
|
$
51,844
|
$
52,065
|
|
|
|
|
|
|
|
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
|
Nine Months
Ended
|
|
Sept. 30,
2016
|
June 30,
2016
|
Sept. 30,
2015
|
Sept. 30,
2016
|
Sept. 30,
2015
|
|
Funds
|
|
|
|
|
|
|
Beginning
assets
|
$
75,687
|
$
72,761
|
$
75,575
|
$
72,114
|
$
73,597
|
|
Sales
|
6,652
|
6,584
|
5,741
|
20,009
|
18,677
|
|
Redemptions
|
(5,854)
|
(5,658)
|
(6,216)
|
(18,112)
|
(18,250)
|
|
Net sales
(redemptions)
|
798
|
926
|
(475)
|
1,897
|
427
|
|
Net
exchanges
|
(7)
|
2
|
(20)
|
(91)
|
(34)
|
|
Market gains and
losses/reinvestments1
|
1,095
|
1,998
|
(2,825)
|
3,653
|
(1,735)
|
|
Ending
assets
|
$
77,573
|
$
75,687
|
$
72,255
|
$
77,573
|
$
72,255
|
|
|
|
|
|
|
|
Separate
accounts2
|
|
|
|
|
|
|
Beginning
assets
|
$
36,499
|
$
34,902
|
$
32,118
|
$
32,561
|
$
30,536
|
|
Sales3
|
3,328
|
3,303
|
2,094
|
9,178
|
6,229
|
|
Redemptions3
|
(1,546)
|
(3,258)
|
(1,686)
|
(6,361)
|
(4,205)
|
|
Net
sales3
|
1,782
|
45
|
408
|
2,817
|
2,024
|
|
Net
exchanges
|
1
|
-
|
(7)
|
1
|
(7)
|
|
Market gains and
losses4
|
103
|
1,552
|
(753)
|
3,006
|
(787)
|
|
Ending
assets
|
$
38,385
|
$
36,499
|
$
31,766
|
$
38,385
|
$
31,766
|
|
|
|
|
|
|
|
Total
assets2
|
|
|
|
|
|
|
Beginning
assets
|
$
112,186
|
$
107,663
|
$
107,693
|
$
104,675
|
$
104,133
|
|
Sales3
|
9,980
|
9,887
|
7,835
|
29,187
|
24,906
|
|
Redemptions3
|
(7,400)
|
(8,916)
|
(7,902)
|
(24,473)
|
(22,455)
|
|
Net sales
(redemptions)3
|
2,580
|
971
|
(67)
|
4,714
|
2,451
|
|
Net
exchanges
|
(6)
|
2
|
(27)
|
(90)
|
(41)
|
|
Market gains and
losses/reinvestments1
|
1,198
|
3,550
|
(3,578)
|
6,659
|
(2,522)
|
|
Ending
assets
|
$
115,958
|
$
112,186
|
$
104,021
|
$
115,958
|
$
104,021
|
|
|
|
|
|
|
|
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,
2016
|
June 30,
2016
|
March 31,
2016
|
Dec 31,
2015
|
Sept. 30,
2015
|
|
By Asset
Class
|
|
|
|
|
|
|
Equity
|
$
64,114
|
$
61,861
|
$
56,485
|
$
53,556
|
$
51,956
|
|
Fixed-income
|
51,844
|
50,325
|
51,178
|
51,119
|
52,065
|
|
Money
market
|
248,366
|
254,992
|
262,030
|
256,437
|
246,937
|
|
Total Managed
Assets
|
$
364,324
|
$
367,178
|
$
369,693
|
$
361,112
|
$
350,958
|
|
By Product
Type
|
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
|
Equity
|
$
37,777
|
$
37,076
|
$
34,935
|
$
34,125
|
$
33,273
|
|
Fixed-income
|
39,796
|
38,611
|
37,826
|
37,989
|
38,982
|
|
Money
market
|
209,382
|
218,107
|
224,681
|
221,615
|
216,252
|
|
Total Fund
Assets
|
$
286,955
|
$
293,794
|
$
297,442
|
$
293,729
|
$
288,507
|
|
Separate
accounts:
|
|
|
|
|
|
|
Equity
|
$
26,337
|
$
24,785
|
$
21,550
|
$
19,431
|
$
18,683
|
|
Fixed-income
|
12,048
|
11,714
|
13,352
|
13,130
|
13,083
|
|
Money
market
|
38,984
|
36,885
|
37,349
|
34,822
|
30,685
|
|
Total Separate
Accounts
|
$
77,369
|
$
73,384
|
$
72,251
|
$
67,383
|
$
62,451
|
|
Total Managed
Assets
|
$
364,324
|
$
367,178
|
$
369,693
|
$
361,112
|
$
350,958
|
|
|
|
|
|
|
|
AVERAGE MANAGED
ASSETS
|
Quarter
Ended
|
|
(in
millions)
|
Sept. 30,
2016
|
June 30,
2016
|
March 31,
2016
|
Dec 31,
2015
|
Sept. 30,
2015
|
|
By Asset
Class
|
|
|
|
|
|
|
Equity
|
63,682
|
$
58,680
|
$
52,786
|
$
54,097
|
$
54,238
|
|
Fixed-income
|
51,446
|
50,793
|
50,880
|
51,922
|
52,577
|
|
Money
market
|
$
250,292
|
254,693
|
260,203
|
247,986
|
245,133
|
|
Total Avg. Managed
Assets
|
$
365,420
|
$
364,166
|
$
363,869
|
$
354,005
|
$
351,948
|
|
By Product
Type
|
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
|
Equity
|
37,902
|
$
35,891
|
$
32,921
|
$
34,726
|
$
35,181
|
|
Fixed-income
|
39,527
|
38,214
|
37,776
|
38,779
|
39,526
|
|
Money
market
|
$
213,078
|
217,226
|
221,848
|
217,031
|
213,633
|
|
Total Avg. Fund
Assets
|
$
290,507
|
$
291,331
|
$
292,545
|
$
290,536
|
$
288,340
|
|
Separate
accounts:
|
|
|
|
|
|
|
Equity
|
25,780
|
$
22,789
|
$
19,865
|
$
19,371
|
$
19,057
|
|
Fixed-income
|
11,919
|
12,579
|
13,104
|
13,143
|
13,051
|
|
Money
market
|
$
37,214
|
37,467
|
38,355
|
30,955
|
31,500
|
|
Total Avg.
Separate Accounts
|
$
74,913
|
$
72,835
|
$
71,324
|
$
63,469
|
$
63,608
|
|
Total Avg. Managed
Assets
|
$
365,420
|
$
364,166
|
$
363,869
|
$
354,005
|
$
351,948
|
|
(unaudited)
|
|
|
|
AVERAGE MANAGED
ASSETS
|
Nine Months
Ended
|
|
(in
millions)
|
Sept. 30,
2016
|
Sept. 30,
2015
|
|
By Asset
Class
|
|
|
|
Equity
|
$
58,383
|
$
54,166
|
|
Fixed-income
|
51,039
|
53,100
|
|
Money
market
|
255,063
|
246,057
|
|
Total Avg. Managed
Assets
|
$
364,485
|
$
353,323
|
|
By Product
Type
|
|
|
|
Funds:
|
|
|
|
Equity
|
$
35,572
|
$
35,114
|
|
Fixed-income
|
38,505
|
40,371
|
|
Money
market
|
217,384
|
212,582
|
|
Total Avg. Fund
Assets
|
$
291,461
|
$
288,067
|
|
Separate
Accounts:
|
|
|
|
Equity
|
$
22,811
|
$
19,052
|
|
Fixed-income
|
12,534
|
12,729
|
|
Money
market
|
37,679
|
33,475
|
|
Total Avg.
Separate Accounts
|
$
73,024
|
$
65,256
|
|
Total Avg. Managed
Assets
|
$
364,485
|
$
353,323
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/federated-investors-inc-reports-third-quarter-2016-earnings-board-declares-cash-dividend-per-share-of-125-including-025-quarterly-and-100-special-dividend-300352984.html
SOURCE Federated Investors, Inc.