Federated Investors, Inc. Reports First Quarter 2019 Earnings
- Q1 2019 EPS of $0.54
- Managed assets reach a record $484.9 billion
- Board declares $0.27 per share quarterly dividend
PITTSBURGH, April 25, 2019 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the world's largest investment managers, today reported earnings per diluted share (EPS) of $0.54 for Q1 2019, compared to $0.60 for the same quarter last year on net income of $54.5 million for Q1 2019 compared to $60.3 million for Q1 2018.
Federated's total managed assets were a record $484.9 billion at March 31, 2019, up $92.7 billion or 24% from $392.2 billion at March 31, 2018 and up $25.0 billion or 5% from $459.9 billion at Dec. 31, 2018. Total average managed assets for Q1 2019 were $475.4 billion, up $77.4 billion or 19% from $398.0 billion reported for Q1 2018 and up $31.7 billion or 7% from $443.7 billion reported for Q4 2018. The results in this press release include activity of Hermes Fund Managers Limited (Hermes), beginning July 1, 2018.
"Liquidity management products saw strong flows in the first quarter, as Federated's money market funds offered the potential for higher yields than deposit accounts," said J. Christopher Donahue, president and chief executive officer. "Assets in our prime, government and tax-free money market funds were up from the previous quarter, and investors turned to Federated for liquidity management solutions that provide diligent credit analysis, broad diversification and competitive yields."
Federated's board of directors declared a quarterly dividend of $0.27 per share. The dividend is payable on May 15, 2019 to shareholders of record as of May 8, 2019. During Q1 2019, Federated purchased 60,833 shares of Federated class B common stock for $1.5 million.
Federated's equity assets were $80.2 billion at March 31, 2019, up $21.4 billion or 36% from $58.8 billion at March 31, 2018 and up $7.7 billion or 11% from $72.5 billion at Dec. 31, 2018. Top-selling equity funds during Q1 2019 on a net basis were Federated Kaufmann Small Cap Fund, Hermes Global Emerging Markets Fund, Federated MDT Small Cap Growth Fund, Federated MDT Small Cap Core Fund and Federated MDT Mid Cap Growth Fund.
Federated's fixed-income assets were $64.1 billion at March 31, 2019, up $1.9 billion or 3% from $62.2 billion at March 31, 2018 and up $0.9 billion or 1% from $63.2 billion at Dec. 31, 2018. Top-selling fixed-income funds during Q1 2019 on a net basis included Federated Total Return Bond Fund, Federated Municipal Ultrashort Fund, Federated U.S. Government Securities Fund: 1-3 Years, Federated Sterling Cash Plus Fund and Federated Mortgage Fund.
Money market assets were $318.4 billion at March 31, 2019, up $52.5 billion or 20% from $265.9 billion at March 31, 2018 and up $16.6 billion or 6% from $301.8 billion at Dec. 31, 2018. Money market fund assets were $214.8 billion at March 31, 2019, up $32.4 billion or 18% from $182.4 billion at March 31, 2018 and up $6.3 billion or 3% from $208.5 billion at Dec. 31, 2018. Federated's money market separate account assets were $103.6 billion at March 31, 2019, up $20.1 billion or 24% from $83.5 billion at March 31, 2018 and up $10.3 billion or 11% from $93.3 billion at Dec. 31, 2018.
Financial Summary
Q1 2019 vs. Q1 2018
Revenue increased $43.2 million or 16% primarily due to the consolidation of Hermes' revenue, which included performance fees of $2.8 million, and higher average money market assets. These increases in revenue were partially offset by a decrease in revenue from lower average equity and fixed-income assets (excluding Hermes).
During Q1 2019, Federated derived 61% of its revenue from long-term assets (40% from equity assets, 14% from fixed-income assets and 7% from alternative/private markets and multi-asset), 38% from money market assets and 1% from sources other than managed assets.
Operating expenses increased $52.0 million or 28% primarily due to the consolidation of Hermes' expenses.
Nonoperating income (expenses), net increased $2.4 million primarily due to an increase in the market value of investments.
Q1 2019 vs. Q4 2018
Revenue was down slightly, primarily due to two fewer days in the quarter and lower performance fees, offset by higher average money market assets. Operating expenses increased $16.9 million or 8% primarily due to higher compensation and related expenses resulting from higher incentive compensation and seasonality in payroll taxes, and an increase in distribution expenses primarily due to the increase in money market fund assets.
Nonoperating income (expenses), net increased $7.8 million primarily due to an increase in the market value of investments.
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).
Federated will host an earnings conference call at 9 a.m. Eastern on April 26, 2019. 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 online in real time via the About section of FederatedInvestors.com. A replay will be available from approximately 12:30 p.m. Eastern on April 26, 2019 until May 3, 2019 by calling 877-481-4010 (domestic) or 919-882-2331 (international) and entering access code 46069. An online replay will be available via FederatedInvestors.com for one year.
Federated Investors, Inc. is a leading global investment manager with $484.9 billion in assets under management as of March 31, 2019. Our investment solutions span 129 equity, fixed-income, alternative/private markets, multi-asset and money market funds and a range of separately managed account strategies. Providing comprehensive investment management to approximately 9,500 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated's nearly 1,900 employees include those in New York, Boston, London and several other offices worldwide. In 2018, Federated acquired a majority interest in Hermes Investment Management, which provides world-class active management and stewardship services.
Federated ranks in the top 6% of equity fund managers in the industry, the top 7% of money market fund managers and the top 11% of fixed-income fund managers1. Federated also ranks as the 10th-largest SMA manager2. Information regarding Hermes is available at Hermes-Investment.com. An analyst presentation that includes information about Hermes also is available. For more information, visit FederatedInvestors.com.
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1) Strategic Insight, March 31, 2019. Based on assets under management in open-end funds.
2) Money Management Institute/Cerulli, Q4 2018.
Federated Securities Corp. is distributor of the Federated funds.
Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Investment Management Limited and Hermes European Equities Limited, each a registered investment adviser.
Certain statements in this press release, such as those related to liquidity management solution attributes, performance, investor preferences and demand, and asset flows and mix, 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, predict whether performance fees or carried interest will be earned, sustain product demand, and asset flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties 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 | Quarter Ended | % Change | |||||||||||
March 31, 2019 | March 31, 2018 | Dec. 31, 2018 | ||||||||||||
Revenue | ||||||||||||||
Investment advisory fees, net | $ | 211,199 | $ | 174,266 | 21 | % | $ | 213,990 | (1) | % | ||||
Administrative service fees, net—affiliates | 54,135 | 49,023 | 10 | 52,022 | 4 | |||||||||
Other service fees, net | 41,716 | 40,563 | 3 | 41,204 | 1 | |||||||||
Total Revenue | 307,050 | 263,852 | 16 | 307,216 | 0 | |||||||||
Operating Expenses | ||||||||||||||
Compensation and related | 111,216 | 78,374 | 42 | 99,153 | 12 | |||||||||
Distribution | 77,632 | 72,498 | 7 | 73,482 | 6 | |||||||||
Systems and communications | 12,794 | 8,433 | 52 | 11,528 | 11 | |||||||||
Office and occupancy | 11,362 | 7,541 | 51 | 10,384 | 9 | |||||||||
Professional service fees | 10,486 | 9,631 | 9 | 10,461 | 0 | |||||||||
Advertising and promotional | 4,190 | 3,228 | 30 | 5,174 | (19) | |||||||||
Travel and related | 3,848 | 2,821 | 36 | 4,627 | (17) | |||||||||
Other | 4,633 | 1,655 | 180 | 4,453 | 4 | |||||||||
Total Operating Expenses | 236,161 | 184,181 | 28 | 219,262 | 8 | |||||||||
Operating Income | 70,889 | 79,671 | (11) | 87,954 | (19) | |||||||||
Nonoperating Income (Expenses) | ||||||||||||||
Investment income (loss), net | 2,709 | 718 | 277 | (1,666) | 263 | |||||||||
Debt expense | (1,400) | (1,330) | 5 | (1,522) | (8) | |||||||||
Other, net | 324 | (143) | 327 | (2,972) | 111 | |||||||||
Total Nonoperating Income (Expenses), net | 1,633 | (755) | 316 | (6,160) | 127 | |||||||||
Income before income taxes | 72,522 | 78,916 | (8) | 81,794 | (11) | |||||||||
Income tax provision | 17,911 | 18,910 | (5) | 20,162 | (11) | |||||||||
Net income including the noncontrolling interests in subsidiaries | 54,611 | 60,006 | (9) | 61,632 | (11) | |||||||||
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries | 65 | (325) | 120 | 96 | (32) | |||||||||
Net Income | $ | 54,546 | $ | 60,331 | (10) | % | $ | 61,536 | (11) | % | ||||
Amounts Attributable to Federated Investors, Inc. | ||||||||||||||
Earnings Per Share1 | ||||||||||||||
Basic and diluted | $ | 0.54 | $ | 0.60 | (10) | % | $ | 0.61 | (11) | % | ||||
Weighted-Average Shares Outstanding | ||||||||||||||
Basic | 96,994 | 97,187 | 96,758 | |||||||||||
Diluted | 96,995 | 97,189 | 96,758 | |||||||||||
Dividends Declared Per Share | $ | 0.27 | $ | 0.25 | $ | 0.27 | ||||||||
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 basic earnings per share under the "two-class method." As such, total net income of $2.1 million, $2.4 million and $2.3 million available to unvested restricted Federated shareholders for the quarterly periods ended March 31, 2019, March 31, 2018 and Dec. 31, 2018, respectively, was excluded from the computation of basic earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share excludes net income available to unvested shareholders of a nonpublic consolidated subsidiary for the quarterly periods ended March 31, 2019 and Dec. 31, 2018. |
Unaudited Condensed Consolidated Balance Sheets | ||||||
(in thousands) | March 31, 2019 | Dec. 31, 2018 | ||||
Assets | ||||||
Cash and other investments | $ | 162,111 | $ | 190,490 | ||
Other current assets | 116,240 | 113,611 | ||||
Intangible assets, net, including goodwill | 1,156,809 | 1,149,247 | ||||
Other long-term assets | 200,016 | 90,335 | ||||
Total Assets | $ | 1,635,176 | $ | 1,543,683 | ||
Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||
Current liabilities | $ | 131,692 | $ | 181,180 | ||
Long-term debt | 130,000 | 135,000 | ||||
Other long-term liabilities | 289,545 | 187,869 | ||||
Redeemable noncontrolling interests | 186,200 | 182,513 | ||||
Equity excluding treasury stock | 1,174,731 | 1,144,458 | ||||
Treasury stock | (276,992) | (287,337) | ||||
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ | 1,635,176 | $ | 1,543,683 | ||
Unaudited Changes in Long-Term Assets - By Asset Class | |||||||||
(in millions) | Quarter Ended | ||||||||
March 31, 2019 | Dec. 31, 2018 | March 31, 2018 | |||||||
Equity | |||||||||
Beginning assets | $ | 72,497 | $ | 84,143 | $ | 62,816 | |||
Sales1 | 5,136 | 4,274 | 3,193 | ||||||
Redemptions1 | (5,926) | (6,777) | (5,258) | ||||||
Net redemptions1 | (790) | (2,503) | (2,065) | ||||||
Net exchanges | 13 | (180) | (127) | ||||||
Impact of foreign exchange2 | (122) | 0 | 0 | ||||||
Market gains and losses3 | 8,647 | (8,963) | (1,794) | ||||||
Ending assets | $ | 80,245 | $ | 72,497 | $ | 58,830 | |||
Fixed Income | |||||||||
Beginning assets | $ | 63,158 | $ | 65,369 | $ | 64,160 | |||
Sales1 | 5,416 | 5,330 | 4,908 | ||||||
Redemptions1 | (6,341) | (7,424) | (6,594) | ||||||
Net redemptions1 | (925) | (2,094) | (1,686) | ||||||
Net exchanges | (33) | 214 | 127 | ||||||
Impact of foreign exchange2 | 8 | 0 | 0 | ||||||
Market gains and losses3 | 1,899 | (331) | (396) | ||||||
Ending assets | $ | 64,107 | $ | 63,158 | $ | 62,205 | |||
Alternative / Private Markets4 | |||||||||
Beginning assets | $ | 18,318 | $ | 18,621 | $ | 366 | |||
Sales1 | 313 | 437 | 41 | ||||||
Redemptions1 | (858) | (530) | (67) | ||||||
Net redemptions1 | (545) | (93) | (26) | ||||||
Net exchanges | (2) | 1 | 1 | ||||||
Impact of foreign exchange2 | 387 | 0 | 0 | ||||||
Market gains and losses3 | (304) | (211) | 2 | ||||||
Ending assets | $ | 17,854 | $ | 18,318 | $ | 343 | |||
Multi-asset | |||||||||
Beginning assets | $ | 4,093 | $ | 4,790 | $ | 5,014 | |||
Sales1 | 104 | 119 | 128 | ||||||
Redemptions1 | (241) | (369) | (235) | ||||||
Net redemptions1 | (137) | (250) | (107) | ||||||
Net exchanges | 2 | (23) | 0 | ||||||
Market gains and losses3 | 301 | (424) | (64) | ||||||
Ending assets | $ | 4,259 | $ | 4,093 | $ | 4,843 | |||
Total Long-term Assets4 | |||||||||
Beginning assets | $ | 158,066 | $ | 172,923 | $ | 132,356 | |||
Sales1 | 10,969 | 10,160 | 8,270 | ||||||
Redemptions1 | (13,366) | (15,100) | (12,154) | ||||||
Net redemptions1 | (2,397) | (4,940) | (3,884) | ||||||
Net exchanges | (20) | 12 | 1 | ||||||
Impact of foreign exchange2 | 273 | 0 | 0 | ||||||
Market gains and losses3 | 10,543 | (9,929) | (2,252) | ||||||
Ending assets | $ | 166,465 | $ | 158,066 | $ | 126,221 | |||
1) | For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return. |
2) | Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes. Reporting only contains foreign exchange separately beginning with Q1 2019 (previously included in Market gains and losses). |
3) | 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 for periods prior to Q1 2019. |
4) | Includes $8.1 billion and $8.3 billion at March 31, 2019 and Dec. 31, 2018, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
Unaudited Changes in Long-Term Assets - By Asset Class and Product Type | ||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||||||||||||
Equity | Fixed Income | Alternative / Private Markets | Multi-asset | Total | ||||||||||||||||||||||||||
Funds | Separate Accounts1 | Funds | Separate Accounts1 | Funds2 | Separate Accounts1 | Funds | Separate Accounts1 | Funds2 | Separate Accounts1 | |||||||||||||||||||||
Beginning assets | $ | 36,584 | $ | 35,913 | $ | 40,490 | $ | 22,668 | $ | 11,365 | $ | 6,953 | $ | 3,920 | $ | 173 | $ | 92,359 | $ | 65,707 | ||||||||||
Sales | 3,412 | 1,724 | 4,154 | 1,262 | 254 | 59 | 102 | 2 | 7,922 | 3,047 | ||||||||||||||||||||
Redemptions | (3,003) | (2,923) | (4,726) | (1,615) | (387) | (471) | (235) | (6) | (8,351) | (5,015) | ||||||||||||||||||||
Net sales (redemptions) | 409 | (1,199) | (572) | (353) | (133) | (412) | (133) | (4) | (429) | (1,968) | ||||||||||||||||||||
Net exchanges | 13 | 0 | (8) | (25) | (2) | 0 | 2 | 0 | 5 | (25) | ||||||||||||||||||||
Impact of foreign exchange3 | (15) | (107) | 23 | (15) | 240 | 147 | 0 | 0 | 248 | 25 | ||||||||||||||||||||
Market gains and losses4 | 5,066 | 3,581 | 1,256 | 643 | (306) | 2 | 283 | 18 | 6,299 | 4,244 | ||||||||||||||||||||
Ending assets | $ | 42,057 | $ | 38,188 | $ | 41,189 | $ | 22,918 | $ | 11,164 | $ | 6,690 | $ | 4,072 | $ | 187 | $ | 98,482 | $ | 67,983 | ||||||||||
1) | Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return. |
2) | Includes $8.1 billion of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
3) | Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes. |
4) | Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. |
Unaudited Changes in Long-Term Assets - By Product Type | |||||||||
(in millions) | Quarter Ended | ||||||||
March 31, 2019 | Dec. 31, 2018 | March 31, 2018 | |||||||
Total Fund Assets1 | |||||||||
Beginning assets | $ | 92,359 | $ | 101,437 | $ | 79,301 | |||
Sales | 7,922 | 7,868 | 5,956 | ||||||
Redemptions | (8,351) | (10,375) | (7,634) | ||||||
Net redemptions | (429) | (2,507) | (1,678) | ||||||
Net exchanges | 5 | 13 | (2) | ||||||
Impact of foreign exchange2 | 248 | 0 | 0 | ||||||
Market gains and losses3 | 6,299 | (6,584) | (622) | ||||||
Ending assets | $ | 98,482 | $ | 92,359 | $ | 76,999 | |||
Total Separate Accounts Assets4 | |||||||||
Beginning assets | $ | 65,707 | $ | 71,486 | $ | 53,055 | |||
Sales5 | 3,047 | 2,292 | 2,314 | ||||||
Redemptions5 | (5,015) | (4,725) | (4,520) | ||||||
Net redemptions5 | (1,968) | (2,433) | (2,206) | ||||||
Net exchanges | (25) | (1) | 3 | ||||||
Impact of foreign exchange2 | 25 | 0 | 0 | ||||||
Market gains and losses3 | 4,244 | (3,345) | (1,630) | ||||||
Ending assets | $ | 67,983 | $ | 65,707 | $ | 49,222 | |||
Total Long-term Assets1,4 | |||||||||
Beginning assets | $ | 158,066 | $ | 172,923 | $ | 132,356 | |||
Sales5 | 10,969 | 10,160 | 8,270 | ||||||
Redemptions5 | (13,366) | (15,100) | (12,154) | ||||||
Net redemptions5 | (2,397) | (4,940) | (3,884) | ||||||
Net exchanges | (20) | 12 | 1 | ||||||
Impact of foreign exchange2 | 273 | 0 | 0 | ||||||
Market gains and losses3 | 10,543 | (9,929) | (2,252) | ||||||
Ending assets | $ | 166,465 | $ | 158,066 | $ | 126,221 | |||
1) | Includes $8.1 billion and $8.3 billion at March 31, 2019 and Dec. 31, 2018, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
2) | Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes. Reporting only contains foreign exchange separately beginning with Q1 2019 (previously included in Market gains and losses). |
3) | 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 for periods prior to Q1 2019. |
4) | Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products. |
5) | For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return. |
Unaudited Managed Assets (in millions) | March 31, 2019 | Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | March 31, 2018 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 80,245 | $ | 72,497 | $ | 84,143 | $ | 57,973 | $ | 58,830 | |||||
Fixed-income | 64,107 | 63,158 | 65,369 | 61,435 | 62,205 | ||||||||||
Alternative / private markets1 | 17,854 | 18,318 | 18,621 | 292 | 343 | ||||||||||
Multi-asset | 4,259 | 4,093 | 4,790 | 4,730 | 4,843 | ||||||||||
Total long-term assets | 166,465 | 158,066 | 172,923 | 124,430 | 126,221 | ||||||||||
Money market | 318,413 | 301,794 | 264,233 | 255,247 | 265,944 | ||||||||||
Total Managed Assets | $ | 484,878 | $ | 459,860 | $ | 437,156 | $ | 379,677 | $ | 392,165 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 42,057 | $ | 36,584 | $ | 43,578 | $ | 31,699 | $ | 31,507 | |||||
Fixed-income | 41,189 | 40,490 | 41,817 | 39,877 | 40,529 | ||||||||||
Alternative / private markets1 | 11,164 | 11,365 | 11,457 | 292 | 343 | ||||||||||
Multi-asset | 4,072 | 3,920 | 4,585 | 4,521 | 4,620 | ||||||||||
Total long-term assets | 98,482 | 92,359 | 101,437 | 76,389 | 76,999 | ||||||||||
Money market | 214,764 | 208,480 | 182,966 | 172,671 | 182,437 | ||||||||||
Total Fund Assets | $ | 313,246 | $ | 300,839 | $ | 284,403 | $ | 249,060 | $ | 259,436 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 38,188 | $ | 35,913 | $ | 40,565 | $ | 26,274 | $ | 27,323 | |||||
Fixed-income | 22,918 | 22,668 | 23,552 | 21,558 | 21,676 | ||||||||||
Alternative / private markets | 6,690 | 6,953 | 7,164 | 0 | 0 | ||||||||||
Multi-asset | 187 | 173 | 205 | 209 | 223 | ||||||||||
Total long-term assets | 67,983 | 65,707 | 71,486 | 48,041 | 49,222 | ||||||||||
Money market | 103,649 | 93,314 | 81,267 | 82,576 | 83,507 | ||||||||||
Total Separate Account Assets | $ | 171,632 | $ | 159,021 | $ | 152,753 | $ | 130,617 | $ | 132,729 | |||||
Total Managed Assets | $ | 484,878 | $ | 459,860 | $ | 437,156 | $ | 379,677 | $ | 392,165 | |||||
1) | Includes $8.1 billion, $8.3 billion and $8.4 billion at March 31, 2019, Dec. 31, 2018 and Sept. 30, 2018, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
Unaudited Average Managed Assets | Quarter Ended | ||||||||||||||
(in millions) | March 31, 2019 | Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | March 31, 2018 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 77,554 | $ | 78,084 | $ | 84,262 | $ | 58,818 | $ | 61,555 | |||||
Fixed-income | 64,167 | 63,881 | 64,750 | 61,648 | 63,538 | ||||||||||
Alternative / private markets1 | 18,311 | 18,410 | 18,504 | 319 | 355 | ||||||||||
Multi-asset | 4,225 | 4,449 | 4,805 | 4,824 | 4,979 | ||||||||||
Total long-term assets | 164,257 | 164,824 | 172,321 | 125,609 | 130,427 | ||||||||||
Money market | 311,150 | 278,885 | 261,571 | 260,371 | 267,546 | ||||||||||
Total Avg. Managed Assets | $ | 475,407 | $ | 443,709 | $ | 433,892 | $ | 385,980 | $ | 397,973 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 40,217 | $ | 39,871 | $ | 43,473 | $ | 31,911 | $ | 32,680 | |||||
Fixed-income | 41,095 | 41,088 | 41,501 | 40,199 | 41,022 | ||||||||||
Alternative / private markets1 | 11,545 | 11,351 | 11,109 | 319 | 355 | ||||||||||
Multi-asset | 4,042 | 4,268 | 4,598 | 4,604 | 4,749 | ||||||||||
Total long-term assets | 96,899 | 96,578 | 100,681 | 77,033 | 78,806 | ||||||||||
Money market | 209,260 | 194,009 | 179,562 | 175,885 | 181,856 | ||||||||||
Total Avg. Fund Assets | $ | 306,159 | $ | 290,587 | $ | 280,243 | $ | 252,918 | $ | 260,662 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 37,337 | $ | 38,213 | $ | 40,789 | $ | 26,907 | $ | 28,875 | |||||
Fixed-income | 23,072 | 22,793 | 23,249 | 21,449 | 22,516 | ||||||||||
Alternative / private markets | 6,766 | 7,059 | 7,395 | 0 | 0 | ||||||||||
Multi-asset | 183 | 181 | 207 | 220 | 230 | ||||||||||
Total long-term assets | 67,358 | 68,246 | 71,640 | 48,576 | 51,621 | ||||||||||
Money market | 101,890 | 84,876 | 82,009 | 84,486 | 85,690 | ||||||||||
Total Avg. Separate Account Assets | $ | 169,248 | $ | 153,122 | $ | 153,649 | $ | 133,062 | $ | 137,311 | |||||
Total Avg. Managed Assets | $ | 475,407 | $ | 443,709 | $ | 433,892 | $ | 385,980 | $ | 397,973 | |||||
1) | The average balance includes $8.4 billion, $8.3 billion and $8.2 billion for the quarters ended March 31, 2019, Dec. 31, 2018 and Sept. 30, 2018, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
SOURCE Federated Investors, Inc.
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