FEDERATED HERMES, INC. PITTSBURGH, July 24, 2014 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.35 for Q2 2014 compared to $0.39 for the same quarter last year on net income of $36.9 million for Q2 2014 compared to $40.4 million for Q2 2013. Federated reported YTD 2014 EPS of $0.69 compared to $0.80 for the same period in 2013 and YTD 2014 net income of $72.1 million compared to $83.4 million for the same period last year.
Federated's total managed assets were $351.6 billion at June 30, 2014. Total assets were down $12.2 billion or 3 percent from $363.8 billion at June 30, 2013 and down $14.6 billion or 4 percent from $366.2 billion reported at March 31, 2014. Federated's stock and bond assets were up $11.1 billion to $106.4 billion or 12 percent from $95.3 billion at June 30, 2013 and up $3.8 billion or 4 percent from $102.6 billion at March 31, 2014. Average managed assets for Q2 2014 were $358.4 billion, down $14.5 billion or 4 percent from $372.9 billion reported for Q2 2013 and down $16.0 billion or 4 percent from $374.4 billion reported for Q1 2014.
"Federated's increase in gross and net equity sales during the quarter strongly correlated with performance, with 96 percent of Federated's equity-fund assets outperforming the majority of their peers over the last year and nearly 70 percent outperforming over the last three years," said J. Christopher Donahue, president and chief executive officer. "Overall, the company's continued success cut across a variety of investment strategies including balanced, dividend income, large growth and international core on the equity side and, on the bond side, our high-yield offerings."
Federated's board of directors declared a quarterly dividend of $0.25 per share. The dividend is payable on Aug. 15, 2014 to shareholders of record as of Aug. 8, 2014. During Q2 2014, Federated purchased 213,767 shares of Federated class B common stock for $5.9 million.
Federated's equity assets were a record $49.9 billion at June 30, 2014, up $11.2 billion or 29 percent from $38.7 billion at June 30, 2013 and up $4.0 billion or 9 percent from $45.9 billion at March 31, 2014. Top-selling equity funds during Q2 2014 on a net basis were Federated Capital Income Fund, Federated Strategic Value Dividend Fund, Federated International Leaders Fund, Federated MDT Stock Trust and Federated Muni and Stock Advantage Fund.
Federated's fixed-income assets were $51.1 billion at June 30, 2014, up $1.1 billion or 2 percent from $50.0 billion at June 30, 2013 and up $0.1 billion from $51.0 billion at March 31, 2014. Bond assets in the liquidation portfolio were $5.4 billion at June 30, 2014. Top-selling fixed-income funds during Q2 2014 on a net basis were Federated Sterling Cash-Plus Fund, Federated Institutional High Yield Bond Fund, Federated Floating Rate Strategic Income Fund, Federated High Yield Trust, Federated Ultrashort Bond Fund and Federated Intermediate Corporate Bond Fund.
Money-market assets were $245.2 billion at June 30, 2014, down $23.3 billion or 9 percent from $268.5 billion at June 30, 2013 and down $18.4 billion or 7 percent from $263.6 billion at March 31, 2014. Money-market mutual fund assets were$212.4 billion at June 30, 2014, down $20.5 billion or 9 percent from $232.9 billion at June 30, 2013 and down $15.1 billion or 7 percent from $227.5 billion at March 31, 2014.
Financial Summary
Q2 2014 vs. Q2 2013
Revenue decreased by $10.8 million or 5 percent primarily due to an increase in voluntary fee waivers related to certain money- market funds in order for those funds to maintain positive or zero net yields and a decrease in revenue due to lower average money-market and fixed-income assets. The decrease was partially offset by an increase in revenue from higher average equity assets. See additional information about voluntary fee waivers in the table at the end of this financial summary.
During Q2 2014, Federated derived 67 percent of its revenue from equity and fixed-income assets (44 percent from equity assets and 23 percent from fixed-income assets), 32 percent from money-market assets and 1 percent from other products and services.
Operating expenses decreased $3.6 million or 2 percent primarily due to a decrease in distribution expenses associated with lower average money-market assets and increased fee waivers related to the low-yield environment for money-market funds, offset by an increase in distribution expenses associated with higher average equity assets and an increase in compensation and related expense.
Q2 2014 vs. Q1 2014
Revenue increased by $1.5 million or 1 percent primarily due to lower voluntary fee waivers, an additional day in Q2 2014 and an increase in revenue from higher average equity assets. This increase was partially offset by a decrease in revenue from lower average money-market assets.
Operating expenses were flat.
YTD 2014 vs. YTD 2013
Revenue decreased by $27.3 million or 6 percent primarily due to an increase in voluntary fee waivers and a decrease in revenue resulting from lower average money-market and fixed-income assets. The decrease was partially offset by higher average equity assets.
For the first half of 2014, Federated derived 66 percent of its revenue from equity and fixed-income assets (43 percent from equity assets and 23 percent from fixed-income assets), 33 percent from money-market assets and 1 percent from other products and services.
Operating expenses decreased $8.6 million or 3 percent primarily due to a decrease in distribution expense related to increased fee waivers, which was partially offset by an increase in compensation and related expenses.
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 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.
Fee waivers to maintain positive or zero net yields on money-market funds and the resulting negative impact of these waivers could vary significantly in the future as they are contingent on a number of variables including, but not limited to, changes in assets within the money market funds, available yields on instruments held by the money-market funds, actions by the Federal Reserve, the U.S. Department of the Treasury, the Securities and Exchange Commission, the Financial Stability Oversight Council and other governmental entities, changes in expenses of the money-market funds, changes in the mix of money-market customer assets, 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 Consolidated Statements of Income
(in millions)
Quarter Ended Change Quarter Ended Change Six Months Ended Change
Q2 2013 to Q1 2014 to YTD 2013
Q2 2014 Q2 2014 to YTD
2014
----
June 30, June 30, March 31, 2014 June 30, June 30,
2014 2013 2014 2013
---- ---- ---- ----
Investment advisory fees $(69.6) $(59.4) $(10.2) $(73.1) $3.5 $(142.7) $(114.3) $(28.4)
Other service fees (32.7) (32.5) (0.2) (33.6) 0.9 (66.3) (65.0) (1.3)
------------------ ----- ----- ---- ----- --- ----- ----- ----
Total revenue (102.3) (91.9) (10.4) (106.7) 4.4 (209.0) (179.3) (29.7)
Less: Reduction in 70.2 66.9 3.3 74.3 (4.1) 144.5 131.7 12.8
distribution expense
--------------------
Operating income (32.1) (25.0) (7.1) (32.4) 0.3 (64.5) (47.6) (16.9)
Less: Reduction in 2.5 1.3 1.2 2.7 (0.2) 5.2 2.1 3.1
noncontrolling interest
-----------------------
Pre-tax impact $(29.6) $(23.7) $(5.9) $(29.7) $0.1 $(59.3) $(45.5) $(13.8)
-------------- ------ ------ ----- ------ ---- ------ ------ ------
Federated will host an earnings conference call at 9 a.m. Eastern on July 25, 2014. 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 Aug. 1, 2014 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 13586188.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $351.6 billion in assets as of June 30, 2014. With 133 funds and a variety of separately managed account options, Federated provides comprehensive investment management to nearly 6,100 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top 3 percent of money-market fund managers in the industry, the top 6 percent of equity fund managers and the top 10 percent of fixed-income fund managers(1). For more information, visit FederatedInvestors.com.
1) Strategic Insight, May 31, 2014. 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, 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 Securities and Exchange Commission. 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 Quarter Ended % Change
Q2 2013 to Q1 2014 to
Q2 2014 Q2 2014
------- -------
June 30, 2014 June 30, 2013 March 31, 2014
--------------
Revenue
Investment advisory fees, net $137,553 $147,515 (7)% $135,093 2%
Administrative service fees, net 52,738 55,253 (5) 54,727 (4)
Other service fees, net 21,447 19,856 8 20,780 3
Other, net 1,243 1,182 5 896 39
----- ----- --- --- ---
Total Revenue 212,981 223,806 (5) 211,496 1
------------- ------- ------- --- ------- ---
Operating Expenses
Compensation and related 70,693 67,855 4 71,759 (1)
Distribution 49,256 53,809 (8) 48,558 1
Professional service fees 8,177 9,293 (12) 8,381 (2)
Office and occupancy 7,286 6,543 11 6,915 5
Systems and communications 6,225 6,087 2 6,404 (3)
Travel and related 3,538 3,533 0 2,861 24
Advertising and promotional 2,959 3,936 (25) 3,439 (14)
Other 6,005 6,722 (11) 6,534 (8)
----- ----- ----- --- ----- ---
Total Operating Expenses 154,139 157,778 (2) 154,851 0
------------------------ ------- ------- --- ------- ---
Operating Income 58,842 66,028 (11) 56,645 4
---------------- ------ ------ --- ------ ---
Nonoperating Income (Expenses)
Investment income, net 4,311 4,059 6 3,613 19
Debt expense (2,849) (3,137) (9) (2,812) 1
Other, net (5) (30) (83) (5) 0
--- --- --- --- ---
Total Nonoperating Income, net 1,457 892 63 796 83
------------------------------ ----- --- --- --- ---
Income before income taxes 60,299 66,920 (10) 57,441 5
Income tax provision 22,985 25,059 (8) 21,796 5
-------------------- ------ ------ --- ------ ---
Net income including the noncontrolling interests in subsidiaries 37,314 41,861 (11) 35,645 5
Less: Net income attributable to the noncontrolling interests in 445 1,453 (69) 451 (1)
subsidiaries
Net Income $36,869 $40,408 (9)% $35,194 5%
---------- ------- ------- --- ------- ---
Amounts Attributable to Federated
Earnings Per Share(1)
Basic and diluted $0.35 $0.39 (10)% $0.34 3%
----------------- ----- ----- ---- ----- ---
Weighted-average shares outstanding
Basic 100,789 100,716 100,725
Diluted 100,790 100,717 100,727
Dividends declared per share $0.25 $0.24 $0.25
---------------------------- ----- ----- -----
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 $1.5 million, $1.5 million and $1.4 million available to unvested restricted shareholders for the quarterly periods ended June 30, 2014, June 30, 2013 and March 31, 2014, 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, 2014 June 30, 2013 % Change
------------- ------------- --------
Revenue
Investment advisory fees, net $272,646 $298,278 (9)%
Administrative service fees, net 107,465 112,081 (4)
Other service fees, net 42,227 39,187 8
Other, net 2,139 2,231 (4)
---------- ----- ----- ---
Total Revenue 424,477 451,777 (6)
------------- ------- ------- ---
Operating Expenses
Compensation and related 142,452 134,792 6
Distribution 97,814 112,048 (13)
Professional service fees 16,558 18,137 (9)
Office and occupancy 14,201 12,975 9
Systems and communications 12,629 12,710 (1)
Travel and related 6,399 6,219 3
Advertising and promotional 6,398 7,358 (13)
Other 12,539 13,311 (6)
----- ------ ------ ---
Total Operating Expenses 308,990 317,550 (3)
------------------------ ------- ------- ---
Operating Income 115,487 134,227 (14)
---------------- ------- ------- ---
Nonoperating Income (Expenses)
Investment income, net 7,924 8,487 (7)
Debt expense (5,662) (6,390) (11)
Other, net (9) (70) (87)
---------- --- --- ---
Total Nonoperating Income, net 2,253 2,027 11
------------------------------ ----- ----- ---
Income before income taxes 117,740 136,254 (14)
Income tax provision 44,781 49,705 (10)
-------------------- ------ ------ ---
Net income including the noncontrolling interests in subsidiaries 72,959 86,549 (16)
Less: Net income attributable to the noncontrolling interests in subsidiaries 896 3,147 (72)
----------------------------------------------------------------------------- --- ----- ---
Net Income $72,063 $83,402 (14)%
---------- ------- ------- ----
Amounts Attributable to Federated
Earnings Per Share(1)
Basic and diluted $0.69 $0.80 (14)%
----------------- ----- ----- ----
Weighted-average shares outstanding
Basic 100,757 100,617
Diluted 100,759 100,618
Dividends declared per share $0.50 $0.48
---------------------------- ----- -----
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 $2.9 million and $3.2 million available to unvested restricted shareholders for the six months ended June 30, 2014 and June 30, 2013, respectively, was excluded from the computation of earnings per share.
Unaudited Condensed Consolidated Balance Sheets
(in thousands) June 30, 2014 Dec. 31, 2013
------------- ------------- -------------
Assets
Cash and other investments $263,595 $292,178
Other current assets 45,128 47,140
Intangible assets, net and goodwill 734,761 735,345
Other long-term assets 61,654 61,134
Total Assets $1,105,138 $1,135,797
------------ ---------- ----------
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities $118,722 $214,205
Long-term debt 229,500 198,333
Other long-term liabilities 152,082 141,398
Redeemable noncontrolling interests 17,302 15,517
Equity excluding treasury stock 1,338,536 1,317,583
Treasury stock (751,004) (751,239)
Total Liabilities, Redeemable Noncontrolling Interests and Equity $1,105,138 $1,135,797
----------------------------------------------------------------- ---------- ----------
Unaudited Changes in Equity and Fixed-Income Fund and Separate Account Assets
(in millions; excludes liquidation portfolio)
Quarter Ended Six Months Ended
------------- ----------------
June 30, 2014 March 31, 2014 June 30, 2013 June 30, 2014 June 30, 2013
------------- -------------- ------------- ------------- -------------
Equity funds
Beginning assets $29,208 $28,097 $24,491 $28,097 $23,152
---------------- ------- ------- ------- ------- -------
Sales 2,566 2,292 1,918 4,858 3,670
Redemptions (1,464) (1,833) (1,629) (3,297) (4,017)
----------- ------ ------ ------ ------ ------
Net sales (redemptions) 1,102 459 289 1,561 (347)
Net exchanges 9 32 43 41 90
Market gains and losses/reinvestments(1) 1,354 620 207 1,974 2,135
------------------------------------------ ----- --- --- ----- -----
Ending assets $31,673 $29,208 $25,030 $31,673 $25,030
------------- ------- ------- ------- ------- -------
Equity separate accounts(2)
Beginning assets $16,671 $16,051 $13,361 $16,051 $11,858
---------------- ------- ------- ------- ------- -------
Sales(3) 1,168 845 1,031 2,013 2,137
Redemptions(3) (746) (778) (937) (1,524) (1,505)
------------- ---- ---- ---- ------ ------
Net sales(3) 422 67 94 489 632
Market gains and losses4 1,122 553 220 1,675 1,185
------------------------ ----- --- --- ----- -----
Ending assets $18,215 $16,671 $13,675 $18,215 $13,675
------------- ------- ------- ------- ------- -------
Total equity(2)
Beginning assets $45,879 $44,148 $37,852 $44,148 $35,010
---------------- ------- ------- ------- ------- -------
Sales(3) 3,734 3,137 2,949 6,871 5,807
Redemptions(3) (2,210) (2,611) (2,566) (4,821) (5,522)
------------- ------ ------ ------ ------ ------
Net sales(3) 1,524 526 383 2,050 285
Net exchanges 9 32 43 41 90
Market gains and losses/reinvestments(1) 2,476 1,173 427 3,649 3,320
------------------------------------------ ----- ----- --- ----- -----
Ending assets $49,888 $45,879 $38,705 $49,888 $38,705
------------- ------- ------- ------- ------- -------
Fixed-income funds
Beginning assets $40,237 $39,606 $42,612 $39,606 $42,478
---------------- ------- ------- ------- ------- -------
Sales 3,325 4,248 5,232 7,573 10,380
Redemptions (3,940) (4,025) (6,877) (7,965) (11,886)
----------- ------ ------ ------ ------ -------
Net (redemptions) sales (615) 223 (1,645) (392) (1,506)
Net exchanges (11) (59) (80) (70) (122)
Acquisition related 301 0 0 301 0
Market gains and losses/reinvestments(1) 445 467 (699) 912 (662)
------------------------------------------ --- --- ---- --- ----
Ending assets $40,357 $40,237 $40,188 $40,357 $40,188
------------- ------- ------- ------- ------- -------
Fixed-income separate accounts(2)
Beginning assets $10,746 $10,520 $10,158 $10,520 $10,233
---------------- ------- ------- ------- ------- -------
Sales(3) 377 254 562 631 1,093
Redemptions(3) (537) (232) (725) (769) (1,370)
------------- ---- ---- ---- ---- ------
Net (redemptions) sales(3) (160) 22 (163) (138) (277)
Net exchanges 1 0 7 1 7
Market gains and losses4 185 204 (185) 389 (146)
------------------------ --- --- ---- --- ----
Ending assets $10,772 $10,746 $9,817 $10,772 $9,817
------------- ------- ------- ------ ------- ------
Total fixed income(2)
Beginning assets $50,983 $50,126 $52,770 $50,126 $52,711
---------------- ------- ------- ------- ------- -------
Sales(3) 3,702 4,502 5,794 8,204 11,473
Redemptions(3) (4,477) (4,257) (7,602) (8,734) (13,256)
------------- ------ ------ ------ ------ -------
Net (redemptions) sales(3) (775) 245 (1,808) (530) (1,783)
Net exchanges (10) (59) (73) (69) (115)
Acquisition related 301 0 0 301 0
Market gains and losses/reinvestments(1) 630 671 (884) 1,301 (808)
------------------------------------------ --- --- ---- ----- ----
Ending assets $51,129 $50,983 $50,005 $51,129 $50,005
------------- ------- ------- ------- ------- -------
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 and sub-advised funds and other managed products.
3) For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses.
4) Reflects the approximate changes in the fair value of the securities held by the portfolios.
Unaudited Total Changes in Equity and Fixed-Income Assets
(in millions; excludes liquidation portfolio)
Quarter Ended Six Months Ended
------------- ----------------
June 30, 2014 March 31, 2014 June 30, 2013 June 30, 2014 June 30, 2013
------------- -------------- ------------- ------------- -------------
Funds
Beginning assets $69,445 $67,703 $67,103 $67,703 $65,630
---------------- ------- ------- ------- ------- -------
Sales 5,891 6,540 7,150 12,431 14,050
Redemptions (5,404) (5,858) (8,506) (11,262) (15,903)
----------- ------ ------ ------ ------- -------
Net sales (redemptions) 487 682 (1,356) 1,169 (1,853)
Net exchanges (2) (27) (37) (29) (32)
Acquisition related 301 0 0 301 0
Market gains and losses/reinvestments(1) 1,799 1,087 (492) 2,886 1,473
------------------------------------------ ----- ----- ---- ----- -----
Ending assets $72,030 $69,445 $65,218 $72,030 $65,218
------------- ------- ------- ------- ------- -------
Separate accounts(2)
Beginning assets $27,417 $26,571 $23,519 $26,571 $22,091
---------------- ------- ------- ------- ------- -------
Sales(3) 1,545 1,099 1,593 2,644 3,230
Redemptions(3) (1,283) (1,010) (1,662) (2,293) (2,875)
------------- ------ ------ ------ ------ ------
Net sales (redemptions)(3) 262 89 (69) 351 355
Net exchanges 1 0 7 1 7
Market gains and losses4 1,307 757 35 2,064 1,039
------------------------ ----- --- --- ----- -----
Ending assets $28,987 $27,417 $23,492 $28,987 $23,492
------------- ------- ------- ------- ------- -------
Total assets (2)
Beginning assets $96,862 $94,274 $90,622 $94,274 $87,721
---------------- ------- ------- ------- ------- -------
Sales(3) 7,436 7,639 8,743 15,075 17,280
Redemptions(3) (6,687) (6,868) (10,168) (13,555) (18,778)
------------- ------ ------ ------- ------- -------
Net sales (redemptions)(3) 749 771 (1,425) 1,520 (1,498)
Net exchanges (1) (27) (30) (28) (25)
Acquisition related 301 0 0 301 0
Market gains and losses/reinvestments(1) 3,106 1,844 (457) 4,950 2,512
------------------------------------------ ----- ----- ---- ----- -----
Ending assets $101,017 $96,862 $88,710 $101,017 $88,710
------------- -------- ------- ------- -------- -------
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 and 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 June 30, 2014 March 31, 2014 Dec. 31, 2013 Sept. 30, 2013 June 30, 2013
(in millions)
------------ ---
By Asset Class
--------------
Equity $49,888 $45,879 $44,148 $40,283 $38,705
Fixed-income 51,129 50,983 50,126 49,962 50,005
Money market 245,201 263,648 275,952 270,293 268,532
Liquidation portfolio(1) 5,408 5,690 5,858 6,177 6,561
Total Managed Assets $351,626 $366,200 $376,084 $366,715 $363,803
-------------------- -------- -------- -------- -------- --------
By Product Type
---------------
Funds:
Equity $31,673 $29,208 $28,097 $25,930 $25,030
Fixed-income 40,357 40,237 39,606 39,944 40,188
Money market 212,434 227,470 240,048 237,949 232,874
Total Fund Assets $284,464 $296,915 $307,751 $303,823 $298,092
----------------- -------- -------- -------- -------- --------
Separate accounts:
Equity $18,215 $16,671 $16,051 $14,353 $13,675
Fixed-income 10,772 10,746 10,520 10,018 9,817
Money market 32,767 36,178 35,904 32,344 35,658
Total Separate Accounts $61,754 $63,595 $62,475 $56,715 $59,150
----------------------- ------- ------- ------- ------- -------
Total Liquidation Portfolio(1) $5,408 $5,690 $5,858 $6,177 $6,561
------ ------ ------ ------ ------
Total Managed Assets $351,626 $366,200 $376,084 $366,715 $363,803
-------------------- -------- -------- -------- -------- --------
AVERAGE MANAGED ASSETS Quarter Ended
(in millions) June 30, 2014 March 31, 2014 Dec. 31, 2013 Sept. 30, 2013 June 30, 2013
------------ ------------- -------------- ------------- -------------- -------------
By Asset Class
--------------
Equity $47,466 $44,693 $42,539 $39,910 $38,762
Fixed-income 50,774 50,658 50,268 49,983 52,375
Money market 254,575 273,233 267,351 267,881 274,899
Liquidation portfolio(1) 5,569 5,791 6,050 6,434 6,834
----------------------- ----- ----- ----- ----- -----
Total Avg. Assets $358,384 $374,375 $366,208 $364,208 $372,870
----------------- -------- -------- -------- -------- --------
By Product Type
---------------
Funds:
Equity $30,154 $28,516 $27,157 $25,761 $25,094
Fixed-income 40,130 39,987 39,883 39,987 42,258
Money market 219,936 235,228 234,788 234,528 237,790
Total Avg. Fund Assets $290,220 $303,731 $301,828 $300,276 $305,142
---------------------- -------- -------- -------- -------- --------
Separate accounts:
Equity $17,312 $16,177 $15,382 $14,149 $13,668
Fixed-income 10,644 10,671 10,385 9,996 10,117
Money market 34,639 38,005 32,563 33,353 37,109
Total Avg. Separate Accounts $62,595 $64,853 $58,330 $57,498 $60,894
---------------------------- ------- ------- ------- ------- -------
Total Avg. Liquidation Portfolio(1) $5,569 $5,791 $6,050 $6,434 $6,834
---------------------------------- ------ ------ ------ ------ ------
Total Avg. Managed Assets $358,384 $374,375 $366,208 $364,208 $372,870
------------------------- -------- -------- -------- -------- --------
1) Liquidation portfolio represents a portfolio of distressed bonds at cost. Federated has been retained by a third party to manage these assets through an orderly liquidation process that will generally occur over a multi-year period. Management-fee rates earned from this portfolio are lower than those of traditional separate account mandates.
(unaudited)
AVERAGE MANAGED ASSETS Six Months Ended
----------------
(in millions) June 30, 2014 June 30, 2013
------------ ------------- -------------
By Asset Class
--------------
Equity $46,079 $37,724
Fixed-income 50,716 52,553
Money market 263,904 279,743
Liquidation portfolio(1) 5,680 7,025
----------------------- ----- -----
Total Avg. Assets $366,379 $377,045
----------------- -------- --------
By Product Type
---------------
Funds:
Equity $29,335 $24,566
Fixed-income 40,058 42,419
Money market 227,582 244,221
------- -------
Total Avg. Fund Assets $296,975 $311,206
---------------------- -------- --------
Separate Accounts:
Equity $16,744 $13,158
Fixed-income 10,658 10,134
Money market 36,322 35,522
------------ ------ ------
Total Avg. Separate Accounts $63,724 $58,814
---------------------------- ------- -------
Total Avg. Liquidation Portfolio(1) $5,680 $7,025
---------------------------------- ------ ------
Total Avg. Managed Assets $366,379 $377,045
------------------------- -------- --------
1) Liquidation portfolio represents a portfolio of distressed bonds at cost. Federated has been retained by a third party to manage these assets through an orderly liquidation process that will generally occur over a multi-year period. Management-fee rates earned from this portfolio are lower than those of traditional separate account mandates.
SOURCE Federated Investors, Inc.
