Federated Investors, Inc. Reports Fourth Quarter and Year-End 2012 Earnings

- Equity and bond assets increase $11 billion during 2012 to a record $95 billion

- 2012 equity and bond net sales reach $6 billion

- Q4 2012 net income increases by 34 percent compared to Q4 2011

- Board declares $0.24 per share quarterly dividend

Jan 24, 2013, 16:02 ET from Federated Investors, Inc.

PITTSBURGH, Jan. 24, 2013 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.44 for the quarter ended Dec. 31, 2012 as compared to $0.36 for the same quarter last year.  Q4 2012 EPS reflects a $0.04 reduction due to the application of the two-class method of computing EPS in connection with the special dividend paid in Q4 2012.  Net income was $49.6 million for Q4 2012 compared to $36.9 million for Q4 2011.  Federated reported 2012 EPS of $1.79 compared to $1.45 for 2011 and net income of  $188.1 million for 2012 compared to $150.9 million for 2011. 

Federated's total managed assets were $379.8 billion at Dec. 31, 2012, up $10.1 billion or 3 percent from $369.7 billion at Dec. 31, 2011 and up $15.7 billion or 4 percent from $364.1 billion reported at Sept. 30, 2012.  Average managed assets for Q4 2012 were $368.7 billion, up $10.4 billion or 3 percent from $358.3 billion reported for Q4 2011 and up $7.6 billion or 2 percent from $361.1 billion reported for Q3 2012.  Net sales of equity and fixed-income funds and separate accounts were $685 million for Q4 2012. 

"In 2012, Federated's range of income-oriented investment strategies proved to be highly attractive options for investors," said J. Christopher Donahue, president and chief executive officer.  "On the equity side, assets in our strategic-value dividend strategies increased more than 35 percent during the year to $14 billion, while on the fixed-income side, Federated had record sales of nearly $22 billion in our funds and separate accounts." 

Federated's board of directors declared a quarterly dividend of $0.24 per share.  The dividend is payable on Feb. 15, 2013 to shareholders of record as of Feb. 8, 2013.  During Q4 2012, Federated paid a regular quarterly dividend of $0.24 per share and a special dividend of $1.51 per share.  In 2012, the company paid total dividends in the amount of $2.47 per share.  During Q4 2012, Federated purchased 50,000 shares of Federated class B common stock for $1.0 million.  In 2012, the company purchased 321,687 shares of Federated class B common stock for $6.3 million

Federated's equity assets were $35.0 billion at Dec. 31, 2012, up $4.1 billion or 13 percent from $30.9 billion at Dec. 31, 2011 and down $0.4 billion or 1 percent from $35.4 billion at Sept. 30, 2012.  Top-selling equity funds during Q4 2012 on a net basis were Federated Capital Income Fund, Federated International Strategic Value Dividend Fund,  Federated Managed Volatility Fund II, Federated Muni and Stock Advantage Fund and Federated Clover Small Value Fund. 

Federated's fixed-income assets were a record $52.7 billion at Dec. 31, 2012, up $7.9 billion or 18 percent from $44.8 billion at Dec. 31, 2011 and up $1.3 billion or 3 percent from $51.4 billion at Sept. 30, 2012.  Fixed-income assets in liquidation portfolios were $7.3 billion at Dec. 31, 2012.  Fixed-income sales during Q4 2012 were driven by strong net flows into Federated's short-duration products, Federated Total Return Bond Fund and Federated Institutional High Yield Bond Fund.

Money market assets in both funds and separate accounts were $284.7 billion at Dec. 31, 2012, down $0.4 billion from $285.1 billion at Dec. 31, 2011 and up $15.1 billion or 6 percent from $269.6 billion at Sept. 30, 2012.  Money market mutual fund assets were $255.7 billion at Dec. 31, 2012, down $0.2 billion from $255.9 billion at Dec. 31, 2011 and up $10.9 billion or 4 percent from $244.8 billion at Sept. 30, 2012.  The Q4 2012 increase in money market assets reflects a variety of factors including the ongoing confidence of clients in money market funds as an investment vehicle, favorable market conditions and seasonality.

Financial Summary

Q4 2012 vs. Q4 2011

Revenue increased by $28.4 million or 13 percent due primarily to a decrease in voluntary fee waivers related to certain money market funds in order for these funds to maintain positive or zero net yields. The reduction in fee waivers was primarily the result of improved yields available on securities held by money market funds.  In addition, revenue increased due to an increase in average fixed-income and equity assets.  See additional information about voluntary fee waivers in the table at the end of this financial summary. 

During Q4 2012, Federated derived 52 percent of its revenue from equity and fixed-income assets (30 percent from equity assets and 22 percent from fixed-income assets), 47 percent from money market assets and 1 percent from other products and services.

Operating expenses increased $7.1 million or 5 percent primarily as a result of an increase in distribution expense related to reduced fee waivers and an increase in compensation and related expense. These increases were partially offset by a reduction in professional service fees due to the recognition of insurance proceeds in Q4 2012.

Nonoperating expenses, net, increased $0.9 million due primarily to a $3.0 million impairment charge in Q4 2012 related to a change in the value of a minority interest investment, partially offset by an increase in investment income.

Q4 2012 vs. Q3 2012

Revenue increased by $6.4 million or 3 percent primarily due to an increase in total average assets.

Operating expenses increased by $13.2 million or 9 percent primarily related to an increase in professional service fees due to a decrease in the recognition of insurance proceeds.

Nonoperating expenses, net, increased $2.4 million due primarily to the aforementioned impairment charge.

YTD 2012 vs. YTD 2011

Revenue increased by $50.6 million, or 6 percent primarily due to a decrease in the aforementioned voluntary fee waivers mainly as a result of improved yields available on securities held by money market funds and an increase in average fixed-income assets.  

Federated derived 52 percent of its revenue from equity and fixed-income assets (31 percent from equity assets and 21 percent from fixed-income assets), 47 percent from money market assets and 1 percent from other products and services.

Operating expenses decreased by $4.5 million or 1 percent.  The decrease primarily reflects lower professional service fees due to the recognition of insurance proceeds in 2012 and nonrecurring legal expenses incurred in Q1 2011. This decrease was partially offset by increases in distribution expenses related to reduced fee waivers and increased average fixed-income assets and an increase in compensation and related expenses. 

Nonoperating expenses, net, decreased by $7.0 million or 63 percent.  The decrease reflects an increase in investment income primarily as a result of realized and unrealized gains on investments and a reduction in debt expense.  These decreases were partially offset by the aforementioned impairment charge.

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 and expenses can impact Federated's activity levels and financial results significantly.  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 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 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, 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.

 

Money Market Fund Yield Waiver Impact to Consolidated Statements of Income (in millions)

Quarter Ended

Change Q4 2011 to Q4 2012

Quarter Ended

Change Q3 2012 to Q4 2012

Year Ended

Change 2011 to 2012

Dec. 31, 2012

Dec. 31, 2011

Sept. 30, 2012

Dec. 31, 2012

Dec. 31, 2011

Investment advisory fees

$

(40.0)

$

(58.8)

$

18.8

$

(41.2)

$

1.2

$

(177.2)

$

(201.6)

$

24.4

Other service fees

(30.7)

(30.2)

(0.5)

(28.3)

(2.4)

(113.8)

(119.1)

5.3

Total Revenue

$

(70.7)

$

(89.0)

$

18.3

$

(69.5)

$

(1.2)

$

(291.0)

$

(320.7)

$

29.7

Less: Reduction in distribution expense

54.9

61.9

(7.0)

52.9

2.0

218.5

232.3

(13.8)

Operating income

$

(15.8)

$

(27.1)

$

11.3

$

(16.6)

$

0.8

$

(72.5)

$

(88.4)

$

15.9

Less: Reduction in noncontrolling interest

0.3

1.0

(0.7)

0.3

0.0

1.3

6.5

(5.2)

Pre-tax impact

$

(15.5)

$

(26.1)

$

10.6

$

(16.3)

$

0.8

$

(71.2)

$

(81.9)

$

10.7

 

Federated will host an earnings conference call at 9 a.m. Eastern on Jan. 25, 2013.  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 Feb. 1, 2013 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 407161.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $379.8 billion in assets as of Dec. 31, 2012.  With 137 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 4,700 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.  Federated ranks in the top 2 percent of money market fund managers in the industry, the top 7 percent of equity fund managers and the top 8 percent of fixed-income fund managers1.  For more information, visit FederatedInvestors.com.

1 Strategic Insight, Nov. 30, 2012.  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 incurred by the company, product demand and asset flows 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 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, 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 Q4 2011 to Q4 2012

Quarter Ended

% Change Q3 2012 to Q4 2012

Dec. 31, 2012

Dec. 31, 2011

Sept. 30, 2012

Revenue

Investment advisory fees, net

$

166,813

$

138,225

21

%

$

160,306

4

%

Administrative service fees, net

57,372

56,830

1

55,879

3

Other service fees, net

19,818

20,249

(2)

21,421

(7)

Other, net

821

1,102

(25)

862

(5)

Total Revenue

244,824

216,406

13

238,468

3

Operating Expenses

Distribution

65,278

58,740

11

64,146

2

Compensation and related

63,211

60,620

4

65,131

(3)

Professional service fees

6,549

9,567

(32)

(7,864)

183

Office and occupancy

6,349

6,254

2

6,108

4

Systems and communications

6,100

5,839

4

6,532

(7)

Travel and related

3,837

3,673

4

2,913

32

Advertising and promotional

3,611

3,524

2

3,559

1

Intangible asset related

951

1,243

(23)

799

19

Other

5,746

5,085

13

7,111

(19)

Total Operating Expenses

161,632

154,545

5

148,435

9

Operating Income

83,192

61,861

34

90,033

(8)

Nonoperating Income (Expenses)

Investment income, net

4,343

2,538

71

3,706

17

Debt expense

(3,506)

(3,860)

(9)

(3,534)

(1)

Other, net

(3,112)

(103)

2,921

(29)

10,631

Total Nonoperating (Expenses) Income, net

(2,275)

(1,425)

60

143

1,691

Income before income taxes

80,917

60,436

34

90,176

(10)

Income tax provision

28,961

21,811

33

31,983

(9)

Net income including noncontrolling interest in subsidiaries

51,956

38,625

35

58,193

(11)

Less: Net income attributable to the noncontrolling interest in subsidiaries

2,375

1,682

41

2,420

(2)

Net Income

$

49,581

$

36,943

34

%

$

55,773

(11)

%

Amounts Attributable to Federated

Earnings Per Share1

Basic and diluted

$

0.44

$

0.36

22

%

$

0.54

(19)

%

Weighted-average shares outstanding

Basic and diluted

100,374

100,264

100,417

Dividends declared per share

$

1.75

$

0.24

$

0.24

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 $5.7 million, $1.2 million and $2.0 million available to unvested restricted shares for the quarterly periods ended Dec. 31, 2012, Dec. 31, 2011 and Sept. 30, 2012, respectively, was excluded from the computation of earnings per share.

 

 

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Year Ended

% Change

Dec. 31, 2012

Dec. 31, 2011

Revenue

Investment advisory fees, net

$

630,834

$

586,340

8

%

Administrative service fees, net

225,529

220,356

2

Other service fees, net

85,902

85,385

1

Other, net

3,441

3,033

13

Total Revenue

945,706

895,114

6

Operating Expenses

Compensation and related

257,622

245,439

5

Distribution

253,445

235,670

8

Systems and communications

25,716

22,971

12

Office and occupancy

24,828

24,689

1

Professional service fees

18,925

53,737

(65)

Advertising and promotional

13,413

13,413

0

Travel and related

12,838

12,174

5

Intangible asset related

2,593

7,915

(67)

Other

23,733

21,651

10

Total Operating Expenses

633,113

637,659

(1)

Operating Income

312,593

257,455

21

Nonoperating Income (Expenses)

Investment income, net

13,667

6,259

118

Debt expense

(14,441)

(17,047)

(15)

Other, net

(3,308)

(296)

1,018

Total Nonoperating Expenses, net

(4,082)

(11,084)

(63)

Income before income taxes

308,511

246,371

25

Income tax provision

110,883

91,288

21

Net income including noncontrolling interest in subsidiaries

197,628

155,083

27

Less: Net income attributable to the noncontrolling interest in subsidiaries

9,540

4,177

128

Net Income

$

188,088

$

150,906

25

%

Amounts Attributable to Federated

Earnings Per Share1

Basic and diluted

$

1.79

$

1.45

23

%

Weighted-average shares outstanding

Basic

100,313

100,609

Diluted

100,313

100,632

Dividends declared per share

$

2.47

$

0.96

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 $8.4 million and $4.9 million available to unvested restricted shares for the years ended Dec. 31, 2012 and Dec. 31, 2011, respectively, was excluded from the computation of earnings per share.

 

 

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

Dec. 31, 2012

Dec. 31, 2011

Assets

Cash and other investments

$

258,628

$

322,317

Other current assets

41,434

44,194

Intangible assets, net and goodwill

727,857

720,926

Other long-term assets

62,142

63,419

Total Assets

$

1,090,061

$

1,150,856

Liabilities and Equity

Current liabilities

$

181,134

$

178,486

Long-term debt

276,250

318,750

Other long-term liabilities

128,733

110,437

Equity excluding treasury stock

1,263,966

1,315,664

Treasury stock

(760,022)

(772,481)

Total Liabilities and Equity

$

1,090,061

$

1,150,856

 

 

Changes in Equity and Fixed-Income Fund and Separate Account Assets

(in millions)

Quarter Ended

Year Ended

Dec. 31, 2012

Sept. 30, 2012

Dec. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Equity Funds

Beginning assets

$

23,658

$

22,671

$

20,140

$

21,930

$

22,626

Sales

1,415

1,454

2,185

6,221

7,633

Redemptions

(1,866)

(1,527)

(1,771)

(7,377)

(7,461)

Net (redemptions) sales

(451)

(73)

414

(1,156)

172

Net exchanges

(47)

(14)

(32)

(70)

(76)

Acquisition-related

0

190

0

190

463

Market gains and losses/reinvestments1

(8)

884

1,408

2,258

(1,255)

Ending assets

$

23,152

$

23,658

$

21,930

$

23,152

$

21,930

Equity Separate Accounts2

Beginning assets

$

11,697

$

10,550

$

7,831

$

8,957

$

8,176

Sales3

893

1,062

873

4,252

2,861

Redemptions3

(605)

(503)

(549)

(2,291)

(2,530)

Net sales3

288

559

324

1,961

331

Net exchanges

1

0

26

(8)

54

Market gains and losses/reinvestments1

(128)

588

776

948

396

Ending assets

$

11,858

$

11,697

$

8,957

$

11,858

$

8,957

Total Equity2

Beginning assets

$

35,355

$

33,221

$

27,971

$

30,887

$

30,802

Sales3

2,308

2,516

3,058

10,473

10,494

Redemptions3

(2,471)

(2,030)

(2,320)

(9,668)

(9,991)

Net (redemptions) sales3

(163)

486

738

805

503

Net exchanges

(46)

(14)

(6)

(78)

(22)

Acquisition-related

0

190

0

190

463

Market gains and losses/reinvestments1

(136)

1,472

2,184

3,206

(859)

Ending assets

$

35,010

$

35,355

$

30,887

$

35,010

$

30,887

Fixed-Income Funds

Beginning assets

$

41,547

$

39,494

$

35,620

$

37,241

$

31,933

Sales

4,848

5,120

4,696

20,426

17,990

Redemptions

(4,268)

(3,770)

(3,417)

(15,664)

(15,844)

Net sales

580

1,350

1,279

4,762

2,146

Net exchanges

141

(92)

38

(1,520)

1,873

Acquisition-related

0

144

0

144

132

Market gains and losses/reinvestments1

210

651

304

1,851

1,157

Ending assets

$

42,478

$

41,547

$

37,241

$

42,478

$

37,241

Fixed-Income Separate Accounts2

Beginning assets

$

9,842

$

9,474

$

7,263

$

7,573

$

8,772

Sales3

393

309

415

1,546

1,698

Redemptions3

(125)

(202)

(195)

(1,128)

(1,443)

Net sales3

268

107

220

418

255

Net exchanges

0

1

1

1,593

(1,806)

Market gains and losses/reinvestments1

123

260

89

649

352

Ending assets

$

10,233

$

9,842

$

7,573

$

10,233

$

7,573

Total Fixed Income2

Beginning assets

$

51,389

$

48,968

$

42,883

$

44,814

$

40,705

Sales3

5,241

5,429

5,111

21,972

19,688

Redemptions3

(4,393)

(3,972)

(3,612)

(16,792)

(17,287)

Net sales3

848

1,457

1,499

5,180

2,401

Net exchanges

141

(91)

39

73

67

Acquisition-related

0

144

0

144

132

Market gains and losses/reinvestments1

333

911

393

2,500

1,509

Ending assets

$

52,711

$

51,389

$

44,814

$

52,711

$

44,814

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, Redemptions or Net sales (redemptions) are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses/reinvestments.

 

 

Changes in Liquidation Portfolios

(in millions)

Quarter Ended

Year Ended

Dec. 31, 2012

Sept. 30, 2012

Dec. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Liquidation Portfolios1

Beginning assets

$

7,718

$

8,124

$

9,144

$

8,856

$

10,708

Sales2

0

0

0

0

2

Redemptions2

(372)

(406)

(289)

(1,509)

(1,854)

Net redemptions2

(372)

(406)

(289)

(1,509)

(1,852)

Market gains and losses/reinvestments3

0

0

1

(1)

0

Ending Assets

$

7,346

$

7,718

$

8,856

$

7,346

$

8,856

1) Liquidation portfolios include portfolios of distressed fixed-income securities. 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 these portfolios are lower than those of traditional separate account mandates.

2) Sales, Redemptions or Net redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses/reinvestments.

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.

 

 

MANAGED ASSETS

(in millions)

Dec. 31, 2012

Sept. 30, 2012

June 30, 2012

March 31, 2012

Dec. 31, 2011

By Asset Class

Equity

$

35,010

$

35,355

$

33,221

$

34,117

$

30,887

Fixed-income

52,711

51,389

48,968

46,221

44,814

Money market

284,704

269,622

265,548

274,704

285,140

Liquidation portfolios1

7,346

7,718

8,124

8,583

8,856

Total Managed Assets

$

379,771

$

364,084

$

355,861

$

363,625

$

369,697

By Product Type

Funds:

Equity

$

23,152

$

23,658

$

22,671

$

23,612

$

21,930

Fixed-income

42,478

41,547

39,494

38,526

37,241

Money market

255,689

244,826

238,610

245,232

255,857

Total Fund Assets

$

321,319

$

310,031

$

300,775

$

307,370

$

315,028

Separate Accounts:

Equity

$

11,858

$

11,697

$

10,550

$

10,505

$

8,957

Fixed-income

10,233

9,842

9,474

7,695

7,573

Money market

29,015

24,796

26,938

29,472

29,283

Total Separate Accounts

$

51,106

$

46,335

$

46,962

$

47,672

$

45,813

Total Liquidation Portfolios1

$

7,346

$

7,718

$

8,124

$

8,583

$

8,856

Total Managed Assets

$

379,771

$

364,084

$

355,861

$

363,625

$

369,697

AVERAGE MANAGED ASSETS

Quarter Ended

(in millions)

Dec. 31, 2012

Sept. 30, 2012

June 30, 2012

March 31, 2012

Dec. 31, 2011

By Asset Class

Equity

$

35,016

$

34,429

$

32,993

$

32,827

$

29,965

Fixed-income

52,211

50,195

47,747

45,792

43,980

Money market

273,943

268,573

271,507

282,801

275,295

Liquidation portfolios1

7,559

7,948

8,353

8,703

9,030

Total Avg. Assets

$

368,729

$

361,145

$

360,600

$

370,123

$

358,270

By Product Type

Funds:

Equity

$

23,209

$

23,133

$

22,642

$

23,075

$

21,451

Fixed-income

42,156

40,579

38,901

38,128

36,546

Money market

248,534

243,111

243,454

251,825

249,324

Total Avg. Fund Assets

$

313,899

$

306,823

$

304,997

$

313,028

$

307,321

Separate Accounts:

Equity

$

11,807

$

11,296

$

10,351

$

9,752

$

8,514

Fixed-income

10,055

9,616

8,846

7,664

7,434

Money market

25,409

25,462

28,053

30,976

25,971

Total Avg. Separate Accounts

$

47,271

$

46,374

$

47,250

$

48,392

$

41,919

Total Avg. Liquidation Portfolios1

$

7,559

$

7,948

$

8,353

$

8,703

$

9,030

Total Avg. Managed Assets

$

368,729

$

361,145

$

360,600

$

370,123

$

358,270

1) Liquidation portfolios include portfolios of distressed fixed-income securities. 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 these portfolios are lower than those of traditional separate account mandates.

 

 

AVERAGE MANAGED ASSETS

Year Ended

(in millions)

Dec. 31, 2012

Dec. 31, 2011

By Asset Class

Equity

$

33,816

$

30,560

Fixed-income

48,986

42,573

Money market

274,206

271,501

Liquidation portfolios1

8,141

9,753

Total Avg. Assets

$

365,149

$

354,387

By Product Type

Funds:

Equity

$

23,015

$

22,071

Fixed-income

39,941

34,455

Money market

246,731

242,187

Total Avg. Fund Assets

$

309,687

$

298,713

Separate Accounts:

Equity

$

10,801

$

8,489

Fixed-income

9,045

8,118

Money market

27,475

29,314

Total Avg. Separate Accounts

$

47,321

$

45,921

Total Avg. Liquidation Portfolios1

$

8,141

$

9,753

Total Avg. Managed Assets

$

365,149

$

354,387

1) Liquidation portfolios include portfolios of distressed fixed-income securities. 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 these portfolios are lower than those of traditional separate account mandates.

 

SOURCE Federated Investors, Inc.



RELATED LINKS

http://FederatedInvestors.com