Federated Investors, Inc. Reports Third Quarter 2013 Earnings

-- Equity assets increase $5 billion or 14% to $40 billion from Q3 2012

-- Board declares $0.25 per share quarterly dividend

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

PITTSBURGH, Oct. 24, 2013 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.36 for Q3 2013 compared to $0.54 for the same quarter last year and net income of $37.7 million for Q3 2013 compared to $55.8 million for Q3 2012.  During Q3 2013, Federated recorded a pre-tax non-cash impairment charge of $3.1 million or $0.02 per share after tax related to a change in the fair value of a minority interest investment.  Federated's financial results for Q3 2012 included the recognition of insurance proceeds that reduced pre-tax operating expenses by $17.3 million and increased EPS by $0.11 per share, after tax.  Federated reported YTD 2013 EPS of $1.16, compared to $1.33 for the same period in 2012 and YTD 2013 net income of $121.1 million compared to $138.5 million for the same period last year.

Federated's total managed assets were $366.7 billion at Sept. 30, 2013, up $2.6 billion or 1 percent from $364.1 billion at Sept. 30, 2012 and up $2.9 billion or 1 percent from $363.8 billion reported at June 30, 2013.  Average managed assets for Q3 2013 were $364.2 billion, up $3.1 billion or 1 percent from $361.1 billion reported for Q3 2012 and down $8.7 billion or 2 percent from $372.9 billion reported for Q2 2013. 

"Federated's top-selling equity funds during the quarter included equity-income strategies and a balanced-allocation portfolio.  Interest in these strategies supports findings of the Federated 2013 Investor Mindset Survey, which showed that high-net-worth investors and advisors have become more positive toward equity and balanced strategies as sources of income," said J. Christopher Donahue, president and chief executive officer. "We also saw demand for our large-cap growth, small value and high-yield bond strategies."

Federated's board of directors declared a quarterly dividend of $0.25 per share.  The dividend is payable on Nov. 15, 2013 to shareholders of record as of Nov. 8, 2013.  During Q3 2013, Federated purchased 60,100 shares of Federated class B common stock for $1.7 million

Federated's equity assets were $40.3 billion at Sept. 30, 2013, up $4.9 billion or 14 percent from $35.4 billion at Sept. 30, 2012 and up $1.6 billion or 4 percent from $38.7 billion at June 30, 2013.  Top-selling equity funds during Q3 2013 on a net basis were Federated Kaufmann Large Cap Fund, Federated Capital Income Fund, Federated International Strategic Value Dividend Fund, Federated Strategic Value Dividend Fund and Federated Clover Small Value Fund. 

Federated's fixed-income assets were $50.0 billion at Sept. 30, 2013, down $1.4 billion or 3 percent from $51.4 billion at Sept. 30, 2012 and similar to the amount reported at June 30, 2013.  Bond assets in the liquidation portfolio were $6.2 billion at Sept. 30, 2013.  Top-selling fixed-income funds during Q3 2013 on a net basis included several short-duration products, Federated Institutional High Yield Bond Fund and Federated Floating Rate Strategic Income Fund. 

Money market assets in both funds and separate accounts were $270.3 billion at Sept. 30, 2013, up $0.7 billion or less than one percent from $269.6 billion at Sept. 30, 2012 and up $1.8 billion or 1 percent from $268.5 billion at June 30, 2013.  Money market mutual fund assets were $237.9 billion at Sept. 30, 2013, down $6.9 billion or 3 percent from $244.8 billion at Sept. 30, 2012 and up $5.0 billion or 2 percent from $232.9 billion at June 30, 2013. 

Financial Summary

Q3 2013 vs. Q3 2012

Revenue decreased by $26.6 million or 11 percent due primarily 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.  The decrease was partially offset by an increase in revenue due to higher average equity assets. See additional information about voluntary fee waivers in the table at the end of this financial summary. 

During Q3 2013, Federated derived 62 percent of its revenue from equity and fixed-income assets (39 percent from equity assets and 23 percent from fixed-income assets), 36 percent from money market assets and 2 percent from other products and services.

Operating expenses increased $5.7 million or 4 percent primarily related to an increase in professional services fees due largely to the recognition of the aforementioned insurance proceeds recorded as a reduction to professional service fees in Q3 2012.  The increase was partially offset by a decrease in distribution expenses related to increased fee waivers.   

Q3 2013 vs. Q2 2013

Revenue decreased by $11.9 million or 5 percent primarily due to an increase in voluntary fee waivers.

Operating expenses decreased by $3.7 million or 2 percent. The decrease primarily reflects lower distribution expenses related to the aforementioned increase in fee waivers as well as decreased compensation and related expenses. 

YTD 2013 vs. YTD 2012

Revenue decreased by $37.2 million or 5 percent primarily due to an increase in voluntary fee waivers, which was partially offset by an increase in revenue due to higher average equity and fixed-income assets.

For the first nine months of 2013, Federated derived 59 percent of its revenue from equity and fixed-income assets (36 percent from equity assets and 23 percent from fixed-income assets), 40 percent from money market assets and 1 percent from other products and services.

Operating expenses increased by $0.2 million primarily due to an increase in professional service fees related to the aforementioned recognition of insurance proceeds partially offset by a decrease in distribution expenses related to the aforementioned increase in fee waivers.

Federated's level of business activity and financial results are dependent upon many factors including market conditions, investment performance and investor behavior.  These factors and others including asset levels, 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 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 customers, 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 Q3 2012 to Q3 2013

Quarter Ended

Change Q2 2013 to Q3 2013

Nine Months Ended

Change YTD 2012 to YTD 2013

Sept. 30, 2013

Sept. 30, 2012

June 30, 2013

Sept. 30, 2013

Sept. 30, 2012

Investment advisory fees

$

(70.7)

$

(41.2)

$

(29.5)

$

(59.4)

$

(11.3)

$

(185.1)

$

(137.2)

$

(47.9)

Other service fees

(34.4)

(28.3)

(6.1)

(32.5)

(1.9)

(99.3)

(83.0)

(16.3)

Total Revenue

$

(105.1)

$

(69.5)

$

(35.6)

$

(91.9)

$

(13.2)

$

(284.4)

$

(220.2)

$

(64.2)

Less: Reduction in distribution expense

72.1

52.9

19.2

66.9

5.2

203.8

163.6

40.2

Operating income

$

(33.0)

$

(16.6)

$

(16.4)

$

(25.0)

$

(8.0)

$

(80.6)

$

(56.6)

$

(24.0)

Less: Reduction in noncontrolling interest

2.7

0.3

2.4

1.3

1.4

4.8

0.9

3.9

Pre-tax impact

$

(30.3)

$

(16.3)

$

(14.0)

$

(23.7)

$

(6.6)

$

(75.8)

$

(55.7)

$

(20.1)

 

Federated will host an earnings conference call at 9 a.m. Eastern on Oct. 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 http://FederatedInvestors.com.  A replay will be available after 12:30 p.m. and through Nov. 1, 2013 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 100517.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $366.7 billion in assets as of Sept. 30, 2013.  With 135 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 5,900 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 7 percent of equity fund managers and the top 9 percent of fixed-income fund managers1.  Federated's 2013 Investor Mindset Survey asked 1,013 high-net-worth investors and 301 advisors about their outlook on the economy, their investments and how they plan to invest during the next year.  For more information, visit http://FederatedInvestors.com

1 Strategic Insight, Aug. 31, 2013.  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, asset flows and mix, fee arrangements with customers 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 Q3 2012 to Q3 2013

Quarter Ended

% Change Q2 2013 to Q3 2013

Sept. 30, 2013

Sept. 30, 2012

June 30, 2013

Revenue

Investment advisory fees, net

$

134,623

$

160,306

(16)%

$

147,515

(9)%

Administrative service fees, net

55,052

55,879

(1)

55,253

0

Other service fees, net

20,022

21,421

(7)

19,856

1

Other, net

2,169

862

152

1,182

84

Total Revenue

211,866

238,468

(11)

223,806

(5)

Operating Expenses

Compensation and related

65,620

65,131

1

67,855

(3)

Distribution

51,051

64,146

(20)

53,809

(5)

Professional service fees

9,704

(7,864)

223

9,293

4

Office and occupancy

6,488

6,108

6

6,543

(1)

Systems and communications

6,464

6,532

(1)

6,087

6

Advertising and promotional

3,975

3,559

12

3,936

1

Travel and related

3,344

2,913

15

3,533

(5)

Intangible asset related

634

799

(21)

654

(3)

Other

6,828

7,111

(4)

6,068

13

Total Operating Expenses

154,108

148,435

4

157,778

(2)

Operating Income

57,758

90,033

(36)

66,028

(13)

Nonoperating Income (Expenses)

Investment income, net

6,999

3,706

89

4,059

72

Debt expense

(3,078)

(3,534)

(13)

(3,137)

(2)

Other, net

(3,133)

(29)

10,703

(30)

10,343

Total Nonoperating Income, net

788

143

451

892

(12)

Income before income taxes

58,546

90,176

(35)

66,920

(13)

Income tax provision

20,917

31,983

(35)

25,059

(17)

Net income including noncontrolling interest in subsidiaries

37,629

58,193

(35)

41,861

(10)

Less: Net (loss) income attributable to the noncontrolling interest in subsidiaries

(75)

2,420

(103)

1,453

(105)

Net Income

$

37,704

$

55,773

(32)%

$

40,408

(7)%

Amounts Attributable to Federated

Earnings Per Share1

Basic and diluted

$

0.36

$

0.54

(33)%

$

0.39

(8)%

Weighted-average shares outstanding

Basic

100,677

100,417

100,716

Diluted

100,678

100,417

100,717

Dividends declared per share

$

0.25

$

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 $1.4 million, $2.0 million and $1.5 million available to unvested restricted shares for the quarterly periods ended Sept. 30, 2013, Sept. 30, 2012 and June 30, 2013, 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

% Change

Sept. 30, 2013

Sept. 30, 2012

Revenue

Investment advisory fees, net

$

432,901

$

464,020

(7)%

Administrative service fees, net

167,133

168,157

(1)

Other service fees, net

59,209

66,084

(10)

Other, net

4,400

2,620

68

Total Revenue

663,643

700,881

(5)

Operating Expenses

Compensation and related

200,413

194,411

3

Distribution

163,099

188,168

(13)

Professional service fees

27,841

12,376

125

Office and occupancy

19,463

18,479

5

Systems and communications

19,173

19,615

(2)

Advertising and promotional

11,333

9,802

16

Travel and related

9,563

9,000

6

Intangible asset related

2,050

1,642

25

Other

18,723

17,988

4

Total Operating Expenses

471,658

471,481

0

Operating Income

191,985

229,400

(16)

Nonoperating Income (Expenses)

Investment income, net

15,486

9,325

66

Debt expense

(9,468)

(10,935)

(13)

Other, net

(3,203)

(195)

1,543

Total Nonoperating Income (Expenses), net

2,815

(1,805)

256

Income before income taxes

194,800

227,595

(14)

Income tax provision

70,621

81,922

(14)

Net income including noncontrolling interest in subsidiaries

124,179

145,673

(15)

Less: Net income attributable to the noncontrolling interest in subsidiaries

3,073

7,165

(57)

Net Income

$

121,106

$

138,508

(13)%

Amounts Attributable to Federated

Earnings Per Share1

Basic and diluted

$

1.16

$

1.33

(13)%

Weighted-average shares outstanding

Basic

100,637

100,292

Diluted

100,638

100,292

Dividends declared per share

$

0.73

$

0.72

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 $4.6 million and $5.0 million available to unvested restricted shares for the nine months ended Sept. 30, 2013 and Sept. 30, 2012, respectively, was excluded from the computation of earnings per share.

 

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

Sept. 30, 2013

Dec. 31, 2012

Assets

Cash and other investments

$

350,514

$

258,628

Other current assets

44,355

41,434

Intangible assets, net and goodwill

726,202

727,857

Other long-term assets

62,032

62,142

Total Assets

$

1,183,103

$

1,090,061

Liabilities, Redeemable Noncontrolling Interests and Equity

Current liabilities

$

176,232

$

181,134

Long-term debt

226,667

276,250

Other long-term liabilities

139,844

128,733

Redeemable noncontrolling interests

90,408

7,268

Equity excluding treasury stock

1,305,830

1,256,698

Treasury stock

(755,878)

(760,022)

Total Liabilities, Redeemable Noncontrolling Interests and Equity

$

1,183,103

$

1,090,061

Changes in Equity and Fixed-Income Fund and Separate Account Assets (in millions)

Quarter Ended

Nine Months Ended

Sept. 30, 2013

June 30, 2013

Sept. 30, 2012

Sept. 30, 2013

Sept. 30, 2012

Equity Funds

Beginning assets

$

25,030

$

24,491

$

22,671

$

23,152

$

21,930

Sales

1,856

1,918

1,454

5,526

4,806

Redemptions

(2,571)

(1,629)

(1,527)

(6,588)

(5,511)

Net (redemptions) sales

(715)

289

(73)

(1,062)

(705)

Net exchanges

77

43

(14)

167

(23)

Acquisition-related

0

0

190

0

190

Market gains and losses/reinvestments1

1,538

207

884

3,673

2,266

Ending assets

$

25,930

$

25,030

$

23,658

$

25,930

$

23,658

Equity Separate Accounts2

Beginning assets

$

13,675

$

13,361

$

10,550

$

11,858

$

8,957

Sales3

971

1,031

1,062

3,108

3,359

Redemptions3

(798)

(937)

(503)

(2,303)

(1,686)

Net sales3

173

94

559

805

1,673

Net exchanges

0

0

0

0

(9)

Market gains and losses/reinvestments1

505

220

588

1,690

1,076

Ending assets

$

14,353

$

13,675

$

11,697

$

14,353

$

11,697

Total Equity2

Beginning assets

$

38,705

$

37,852

$

33,221

$

35,010

$

30,887

Sales3

2,827

2,949

2,516

8,634

8,165

Redemptions3

(3,369)

(2,566)

(2,030)

(8,891)

(7,197)

Net (redemptions) sales3

(542)

383

486

(257)

968

Net exchanges

77

43

(14)

167

(32)

Acquisition-related

0

0

190

0

190

Market gains and losses/reinvestments1

2,043

427

1,472

5,363

3,342

Ending assets

$

40,283

$

38,705

$

35,355

$

40,283

$

35,355

Fixed-Income Funds

Beginning assets

$

40,188

$

42,612

$

39,494

$

42,478

$

37,241

Sales

4,382

5,232

5,120

14,762

15,578

Redemptions

(4,789)

(6,877)

(3,770)

(16,675)

(11,396)

Net (redemptions) sales

(407)

(1,645)

1,350

(1,913)

4,182

Net exchanges

(98)

(80)

(92)

(220)

(1,661)

Acquisition-related

0

0

144

0

144

Market gains and losses/reinvestments1

261

(699)

651

(401)

1,641

Ending assets

$

39,944

$

40,188

$

41,547

$

39,944

$

41,547

Fixed-Income Separate Accounts2

Beginning assets

$

9,817

$

10,158

$

9,474

$

10,233

$

7,573

Sales3

498

562

309

1,591

1,153

Redemptions3

(412)

(725)

(202)

(1,782)

(1,003)

Net sales (redemptions)3

86

(163)

107

(191)

150

Net exchanges

(10)

7

1

(3)

1,593

Market gains and losses/reinvestments1

125

(185)

260

(21)

526

Ending assets

$

10,018

$

9,817

$

9,842

$

10,018

$

9,842

Total Fixed Income2

Beginning assets

$

50,005

$

52,770

$

48,968

$

52,711

$

44,814

Sales3

4,880

5,794

5,429

16,353

16,731

Redemptions3

(5,201)

(7,602)

(3,972)

(18,457)

(12,399)

Net (redemptions) sales3

(321)

(1,808)

1,457

(2,104)

4,332

Net exchanges

(108)

(73)

(91)

(223)

(68)

Acquisition-related

0

0

144

0

144

Market gains and losses/reinvestments1

386

(884)

911

(422)

2,167

Ending assets

$

49,962

$

50,005

$

51,389

$

49,962

$

51,389

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/reinvestments.

 

Changes in Liquidation Portfolio (in millions)

Quarter Ended

Nine Months Ended

Sept. 30, 2013

June 30, 2013

Sept. 30, 2012

Sept. 30, 2013

Sept. 30, 2012

Liquidation Portfolio1

Beginning assets

$

6,561

$

7,019

$

8,124

$

7,346

$

8,856

Net redemptions

(384)

(458)

(406)

(1,169)

(1,137)

Market gains and losses/reinvestments2

0

0

0

0

(1)

Ending Assets

$

6,177

$

6,561

$

7,718

$

6,177

$

7,718

1) Liquidation portfolio represents a portfolio of distressed bonds. 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.

2) 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)

Sept. 30, 2013

June 30, 2013

March 31, 2013

Dec. 31, 2012

Sept. 30, 2012

By Asset Class

Equity

$

40,283

$

38,705

$

37,852

$

35,010

$

35,355

Fixed-income

49,962

50,005

52,770

52,711

51,389

Money market

270,293

268,532

279,668

284,704

269,622

Liquidation portfolio1

6,177

6,561

7,019

7,346

7,718

Total Managed Assets

$

366,715

$

363,803

$

377,309

$

379,771

$

364,084

By Product Type

Funds:

Equity

$

25,930

$

25,030

$

24,491

$

23,152

$

23,658

Fixed-income

39,944

40,188

42,612

42,478

41,547

Money market

237,949

232,874

242,734

255,689

244,826

Total Fund Assets

$

303,823

$

298,092

$

309,837

$

321,319

$

310,031

Separate Accounts:

Equity

$

14,353

$

13,675

$

13,361

$

11,858

$

11,697

Fixed-income

10,018

9,817

10,158

10,233

9,842

Money market

32,344

35,658

36,934

29,015

24,796

Total Separate Accounts

$

56,715

$

59,150

$

60,453

$

51,106

$

46,335

Total Liquidation Portfolio1

$

6,177

$

6,561

$

7,019

$

7,346

$

7,718

Total Managed Assets

$

366,715

$

363,803

$

377,309

$

379,771

$

364,084

AVERAGE MANAGED ASSETS

Quarter Ended

(in millions)

Sept. 30, 2013

June 30, 2013

March 31, 2013

Dec. 31, 2012

Sept. 30, 2012

By Asset Class

Equity

$

39,910

$

38,762

$

36,685

$

35,016

$

34,429

Fixed-income

49,983

52,375

52,732

52,211

50,195

Money market

267,881

274,899

284,588

273,943

268,573

Liquidation portfolio1

6,434

6,834

7,215

7,559

7,948

Total Avg. Assets

$

364,208

$

372,870

$

381,220

$

368,729

$

361,145

By Product Type

Funds:

Equity

$

25,761

$

25,094

$

24,037

$

23,209

$

23,133

Fixed-income

39,987

42,258

42,581

42,156

40,579

Money market

234,528

237,790

250,652

248,534

243,111

Total Avg. Fund Assets

$

300,276

$

305,142

$

317,270

$

313,899

$

306,823

Separate Accounts:

Equity

$

14,149

$

13,668

$

12,648

$

11,807

$

11,296

Fixed-income

9,996

10,117

10,151

10,055

9,616

Money market

33,353

37,109

33,936

25,409

25,462

Total Avg. Separate Accounts

$

57,498

$

60,894

$

56,735

$

47,271

$

46,374

Total Avg. Liquidation Portfolio1

$

6,434

$

6,834

$

7,215

$

7,559

$

7,948

Total Avg. Managed Assets

$

364,208

$

372,870

$

381,220

$

368,729

$

361,145

1) Liquidation portfolio represents a portfolio of distressed bonds.  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.

AVERAGE MANAGED ASSETS

Nine Months Ended

(in millions)

Sept. 30, 2013

Sept. 30, 2012

By Asset Class

Equity

$

38,452

$

33,326

Fixed-income

51,697

47,912

Money market

275,789

274,293

Liquidation portfolio1

6,828

8,334

Total Avg. Assets

$

372,766

$

363,865

By Product Type

Funds:

Equity

$

24,964

$

22,950

Fixed-income

41,609

39,203

Money market

240,990

246,130

Total Avg. Fund Assets

$

307,563

$

308,283

Separate Accounts:

Equity

$

13,488

$

10,376

Fixed-income

10,088

8,709

Money market

34,799

28,163

Total Avg. Separate Accounts

$

58,375

$

47,248

Total Avg. Liquidation Portfolio1

$

6,828

$

8,334

Total Avg. Managed Assets

$

372,766

$

363,865

1) Liquidation portfolio represents a portfolio of distressed bonds.  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.



RELATED LINKS

http://FederatedInvestors.com