Federated Investors, Inc. Reports Fourth Quarter and Full-Year 2015 Earnings

- Earnings per share for Q4 2015 increases to $0.46, up 21 percent compared to Q4 2014

- Full-year 2015 earnings per share increases to $1.62, up 14 percent compared to 2014

- Board declares $0.25 per share quarterly dividend

Jan 28, 2016, 16:16 ET from Federated Investors, Inc.

PITTSBURGH, Jan. 28, 2016 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.46 for Q4 2015, up 21 percent from $0.38 for the same quarter last year on net income of $47.6 million for Q4 2015, compared to $39.6 million for Q4 2014.  Federated reported 2015 EPS of $1.62, up 14 percent from $1.42 in 2014, on net income of $169.8 million, compared to $149.2 million for 2014.

Federated's total managed assets were $361.1 billion at Dec. 31, 2015, down $1.8 billion from $362.9 billion at Dec. 31, 2014 and up $10.1 billion or 3 percent from $351.0 billion at Sept. 30, 2015.  Federated's equity and fixed-income managed assets were $104.7 billion at Dec. 31, 2015, up $0.6 billion or 1 percent from $104.1 billion at Dec. 31, 2014 and up $0.7 billion or 1 percent from $104.0 billion at Sept. 30, 2015.

"Federated saw strong flows into a number of our products including Federated International Leaders Fund, which invests primarily in foreign company stocks in developed markets, and Federated Kaufmann Large Cap Fund, which invests primarily in large-cap growth companies," said J. Christopher Donahue, president and chief executive officer.  "In addition, we saw continued interest in Federated's high-yield products during the fourth quarter."

Federated's board of directors declared a quarterly dividend of $0.25 per share.  The dividend is payable on Feb. 12, 2016 to shareholders of record as of Feb. 5, 2016.  During Q4 2015, Federated purchased 533,636 shares of Federated class B common stock for $16.2 million, bringing the total shares of Class B common stock purchased in 2015 to 1,696,457 shares for $53.0 million.

Federated's equity assets were $53.6 billion at Dec. 31, 2015, up $2.2 billion or 4 percent from $51.4 billion at Dec. 31, 2014 and up $1.6 billion or 3 percent from $52.0 billion at Sept. 30, 2015.  Top-selling equity funds during Q4 2015 on a net basis were Federated International Leaders Fund, Federated Kaufmann Large Cap Fund, Federated MDT Stock Trust, Federated Absolute Return Fund and Federated Global Allocation Fund.

Federated's fixed-income assets were $51.1 billion at Dec. 31, 2015, down $1.6 billion or 3 percent from $52.7 billion at Dec. 31, 2014 and down $1.0 billion or 2 percent from $52.1 billion at Sept. 30, 2015.  Top-selling fixed-income funds on a net basis during Q4 2015 included Federated Institutional High Yield Bond Fund, Federated High Yield Trust, Federated Sterling Cash Plus Fund and Federated Municipal High Yield Advantage Fund.

Federated's money market assets were $256.4 billion at Dec. 31, 2015, down $2.4 billion or 1 percent from $258.8 billion at Dec. 31, 2014 and up $9.5 billion or 4 percent from $246.9 billion at Sept. 30, 2015.  Money market mutual fund assets were $221.6 billion at Dec. 31, 2015, down $3.9 billion or 2 percent from $225.5 billion at Dec. 31, 2014 and up $5.3 billion or 2 percent from $216.3 billion at Sept. 30, 2015.

Financial Summary

Q4 2015 vs. Q4 2014

Revenue increased by $25.8 million or 12 percent primarily due to a decrease in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers) and an increase in revenue from higher average equity assets. The increase in revenue was partially offset by a decrease in revenue from lower average fixed-income assets.  See additional information about voluntary yield-related fee waivers in the table at the end of this financial summary.

During Q4 2015, Federated derived 62 percent of its revenue from equity and fixed-income assets (43 percent from equity assets and 19 percent from fixed-income assets) and 38 percent from money market assets.

Operating expenses increased by $10.5 million or 7 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers.

Q4 2015 vs. Q3 2015

Revenue increased by $9.3 million or 4 percent primarily due to a decrease in voluntary yield-related fee waivers.

Operating expenses increased by $6.7 million or 4 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers.

Nonoperating income (expenses), net increased by $4.6 million primarily due to an increase in net investment income resulting mainly from a decrease in losses on investments in Q4 2015 as compared to Q3 2015, as well as capital gain distributions received from fund investments in Q4 2015.

2015 vs. 2014

Revenue increased by $67.4 million or 8 percent primarily due to a decrease in voluntary yield-related fee waivers and an increase in revenue from higher average equity assets.  The increase in revenue was partially offset by a decrease in revenue from lower average money market assets.

During 2015, Federated derived 67 percent of its revenue from equity and fixed-income assets (46 percent from equity assets and 21 percent from fixed-income assets) and 33 percent from money market assets.

Operating expenses increased by $25.9 million or 4 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers and an increase in average equity assets.  The increase was partially offset by decreased distribution expenses attributable to lower average money market assets.

Nonoperating (expenses) income, net decreased by $5.9 million primarily due to a decrease in net investment income resulting from an increase in losses on investments in 2015 compared to investment gains realized in 2014, partially offset by a decrease in debt expense primarily due to a lower average interest rate on Federated's term loan.

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 business activity levels and financial results.  Risk factors and uncertainties that can influence Federated's financial results are discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission (SEC).

Voluntary yield-related fee waivers and 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, yields on instruments available for purchase by the money market funds, actions by the Federal Reserve, the U.S. Department of the Treasury, the SEC, the Financial Stability Oversight Council and other governmental entities, changes in fees and expenses of the money market funds, changes in the mix of money market customer assets, changes in customer relationships, changes in the money market product structures and offerings, demand for competing products, changes in distribution models, changes in the distribution fee arrangements with third parties, Federated's willingness to continue the fee waivers and changes in the extent to which the impact of the waivers is shared by third parties.

 

Unaudited Money Market Fund Yield Waiver Impact to the Consolidated Statements of Income

(in millions)

Quarter Ended

Change Q4 2014 to Q4 2015

Quarter Ended

Change Q3 2015 to Q4 2015

Year Ended

Change 2014 to 2015

Dec. 31, 2015

Dec. 31, 2014

Sept. 30, 2015

Dec. 31, 2015

Dec. 31, 2014

Investment advisory fees

$

(37.5)

$

(67.4)

$

29.9

$

(49.3)

$

11.8

$

(202.5)

$

(279.5)

$

77.0

Other service fees

(34.5)

(32.4)

(2.1)

(34.0)

(0.5)

(131.1)

(131.1)

0

Total revenue

$

(72.0)

$

(99.8)

$

27.8

$

(83.3)

$

11.3

$

(333.6)

$

(410.6)

$

77.0

Less: Reduction in distribution expense

54.5

67.6

(13.1)

61.3

(6.8)

240.6

280.9

(40.3)

Operating income

$

(17.5)

$

(32.2)

$

14.7

$

(22.0)

$

4.5

$

(93.0)

$

(129.7)

$

36.7

Less: Reduction in noncontrolling interest

1.1

2.7

(1.6)

1.7

(0.6)

7.1

10.7

(3.6)

Pre-tax impact

$

(16.4)

$

(29.5)

$

13.1

$

(20.3)

$

3.9

$

(85.9)

$

(119.0)

$

33.1

 

Federated will host an earnings conference call at 9 a.m. Eastern on Jan. 29, 2016.  Investors are invited to listen to Federated's earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (international) prior to the 9 a.m. start time.  The call may also be accessed in real time on the Internet via the About Federated section of FederatedInvestors.com.  A replay will be available from approximately 12:30 p.m. Eastern on Jan. 29, 2016 through Feb. 5, 2016 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 13627932. 

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $361.1 billion in assets as of Dec. 31, 2015.  With 122 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 8,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.  Federated ranks in the top 4 percent of money market fund managers in the industry, the top 5 percent of equity fund managers and the top 9 percent of fixed-income fund managers1.  For more information, visit FederatedInvestors.com.

1) Strategic Insight, Nov. 30, 2015.  Based on assets under management in open-end funds. Federated Securities Corp. is distributor of the Federated funds. Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling and Federated MDTA LLC, each a registered investment adviser.

Certain statements in this press release, such as those related to the level of fee waivers and expenses incurred by the company, product demand and performance, investor interest and preferences, asset flows and mix, changes in product structure, 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 Q4 2014 to Q4 2015

Quarter Ended

 % Change Q3 2015 to Q4 2015

Dec. 31, 2015

Dec. 31, 2014

Sept. 30, 2015

Revenue

Investment advisory fees, net

$

166,441

$

143,587

16

%

$

158,898

5

%

Administrative service fees, net—affiliates

53,561

53,427

0

53,275

1

Other service fees, net

22,896

19,562

17

21,198

8

Other, net

741

1,282

(42)

950

(22)

Total Revenue

243,639

217,858

12

234,321

4

Operating Expenses

Compensation and related

68,870

72,161

(5)

70,624

(2)

Distribution

66,069

53,764

23

58,823

12

Systems and communications

7,096

6,773

5

6,684

6

Office and occupancy

6,591

7,526

(12)

6,552

1

Professional service fees

6,100

5,714

7

7,823

(22)

Travel and related

3,935

3,792

4

3,183

24

Advertising and promotional

3,645

3,661

0

3,310

10

Other

4,448

2,833

57

3,078

45

Total Operating Expenses

166,754

156,224

7

160,077

4

Operating Income

76,885

61,634

25

74,244

4

Nonoperating Income (Expenses)

Investment income (loss), net

1,541

2,325

(34)

(3,049)

151

Debt expense

(974)

(1,787)

(45)

(979)

(1)

Other, net

4

(15)

127

(8)

150

Total Nonoperating Income (Expenses), net

571

523

9

(4,036)

114

Income before income taxes

77,456

62,157

25

70,208

10

Income tax provision

28,287

22,552

25

26,072

8

Net income including the noncontrolling interests in subsidiaries

49,169

39,605

24

44,136

11

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

1,559

(8)

NM

5

NM

Net Income

$

47,610

$

39,613

20

%

$

44,131

8

%

Amounts Attributable to Federated Investors, Inc.

Earnings Per Share1

Basic and diluted

$

0.46

$

0.38

21

%

$

0.42

10

%

Weighted-average shares outstanding

Basic

100,088

100,642

100,449

Diluted

100,090

100,643

100,451

Dividends declared per share

$

0.25

$

0.25

$

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 $1.8 million, $1.5 million and $1.7 million available to unvested restricted shareholders for the quarterly periods ended Dec. 31, 2015, Dec. 31, 2014 and Sept. 30, 2015, respectively, was excluded from the computation of earnings per share.

 

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Year Ended

Dec. 31, 2015

Dec. 31, 2014

% Change

Revenue

Investment advisory fees, net

$

626,325

$

557,318

12

%

Administrative service fees, net—affiliates

211,458

213,136

(1)

Other service fees, net

84,910

84,039

1

Other, net

3,916

4,757

(18)

     Total Revenue

926,609

859,250

8

Operating Expenses

Compensation and related

286,932

285,337

1

Distribution

232,445

210,641

10

Professional service fees

29,090

30,216

(4)

Systems and communications

27,629

25,794

7

Office and occupancy

26,706

29,968

(11)

Advertising and promotional

13,930

13,330

5

Travel and related

13,409

13,219

1

Other

17,022

12,796

33

     Total Operating Expenses

647,163

621,301

4

Operating Income

279,446

237,949

17

Nonoperating (Expenses) Income

Investment (loss) income, net

(208)

11,043

(102)

Debt expense

(4,299)

(9,611)

(55)

Other, net

(33)

(29)

14

     Total Nonoperating (Expenses) Income, net

(4,540)

1,403

(424)

Income before income taxes

274,906

239,352

15

Income tax provision

102,920

89,530

15

Net income including the noncontrolling interests in subsidiaries

171,986

149,822

15

Less: Net income attributable to the noncontrolling interests in subsidiaries

2,179

586

NM

Net Income

$

169,807

$

149,236

14

%

Amounts Attributable to Federated Investors, Inc.

Earnings Per Share1

Basic and diluted

$

1.62

$

1.42

14

%

Weighted-average shares outstanding

         Basic

100,475

100,721

         Diluted

100,477

100,723

Dividends declared per share

$

1.00

$

1.00

1)

Unvested share-based payment awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $6.6 million and $5.8 million available to unvested restricted shareholders for the years ended Dec. 31, 2015 and Dec. 31, 2014, respectively, was excluded from the computation of earnings per share.

 

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

Dec. 31, 2015

Dec. 31, 2014

Assets

  Cash and other investments

$

346,815

$

297,338

  Other current assets

49,013

44,717

  Intangible assets, net and goodwill

734,492

733,847

  Other long-term assets

56,883

64,617

    Total Assets

$

1,187,203

$

1,140,519

Liabilities, Redeemable Noncontrolling Interests and Equity

  Current liabilities

$

159,208

$

149,321

  Long-term debt

191,250

216,750

  Other long-term liabilities

179,039

161,099

  Redeemable noncontrolling interests

8,734

3,697

  Equity excluding treasury stock

840,911

774,910

  Treasury stock

(191,939)

(165,258)

    Total Liabilities, Redeemable Noncontrolling Interests and Equity

$

1,187,203

$

1,140,519

 

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

(in millions)

Quarter Ended

Year Ended

Dec. 31, 2015

Sept. 30, 2015

Dec. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Equity funds

Beginning assets

$

33,273

$

35,533

$

32,088

$

33,141

$

28,097

Sales

2,143

2,464

2,650

9,801

10,140

Redemptions

(2,279)

(2,043)

(1,844)

(8,159)

(6,530)

Net (redemptions) sales

(136)

421

806

1,642

3,610

Net exchanges

(23)

(110)

(7)

(88)

42

Market gains and losses/reinvestments1

1,011

(2,571)

254

(570)

1,392

Ending assets

$

34,125

$

33,273

$

33,141

$

34,125

$

33,141

Equity separate accounts2

Beginning assets

$

18,683

$

19,256

$

18,247

$

18,285

$

16,051

Sales3

1,192

1,456

1,392

5,790

4,536

Redemptions3

(1,187)

(1,350)

(1,622)

(4,575)

(3,883)

Net sales (redemptions)3

5

106

(230)

1,215

653

Net exchanges

4

(1)

0

3

0

Market gains and losses4

739

(678)

268

(72)

1,581

Ending assets

$

19,431

$

18,683

$

18,285

$

19,431

$

18,285

Total equity2

Beginning assets

$

51,956

$

54,789

$

50,335

$

51,426

$

44,148

Sales3

3,335

3,920

4,042

15,591

14,676

Redemptions3

(3,466)

(3,393)

(3,466)

(12,734)

(10,413)

Net (redemptions) sales3

(131)

527

576

2,857

4,263

Net exchanges

(19)

(111)

(7)

(85)

42

Market gains and losses/reinvestments1

1,750

(3,249)

522

(642)

2,973

Ending assets

$

53,556

$

51,956

$

51,426

$

53,556

$

51,426

Fixed-income funds

Beginning assets

$

38,982

$

40,042

$

40,435

$

40,456

$

39,606

Sales

3,477

3,277

4,631

14,496

16,186

Redemptions

(4,218)

(4,173)

(4,411)

(16,588)

(16,120)

Net (redemptions) sales

(741)

(896)

220

(2,092)

66

Net exchanges

2

90

(285)

33

(354)

Acquisition related

0

0

0

0

301

Market gains and losses/reinvestments1

(254)

(254)

86

(408)

837

Ending assets

$

37,989

$

38,982

$

40,456

$

37,989

$

40,456

Fixed-income separate accounts2

Beginning assets

$

13,083

$

12,862

$

10,752

$

12,251

$

10,520

Sales3

332

638

1,499

1,963

2,393

Redemptions3

(244)

(336)

(306)

(1,061)

(1,343)

Net sales3

88

302

1,193

902

1,050

Net exchanges

0

(6)

229

(6)

230

Market gains and losses4

(41)

(75)

77

(17)

451

Ending assets

$

13,130

$

13,083

$

12,251

$

13,130

$

12,251

Total fixed income2

Beginning assets

$

52,065

$

52,904

$

51,187

$

52,707

$

50,126

Sales3

3,809

3,915

6,130

16,459

18,579

Redemptions3

(4,462)

(4,509)

(4,717)

(17,649)

(17,463)

Net (redemptions) sales 3

(653)

(594)

1,413

(1,190)

1,116

Net exchanges

2

84

(56)

27

(124)

Acquisition related

0

0

0

0

301

Market gains and losses/reinvestments1

(295)

(329)

163

(425)

1,288

Ending assets

$

51,119

$

52,065

$

52,707

$

51,119

$

52,707

1)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates.

2)

Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products.

3)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses.

4)

Reflects the approximate changes in the fair value of the securities held by the portfolios.

 

Unaudited Total Changes in Equity and Fixed-Income Assets

(in millions)

Quarter Ended

Year Ended

Dec. 31, 2015

Sept. 30, 2015

Dec. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Funds

Beginning assets

$

72,255

$

75,575

$

72,523

$

73,597

$

67,703

Sales

5,620

5,741

7,281

24,297

26,326

Redemptions

(6,497)

(6,216)

(6,255)

(24,747)

(22,650)

Net (redemptions) sales

(877)

(475)

1,026

(450)

3,676

Net exchanges

(21)

(20)

(292)

(55)

(312)

Acquisition related

0

0

0

0

301

Market gains and losses/reinvestments1

757

(2,825)

340

(978)

2,229

Ending assets

$

72,114

$

72,255

$

73,597

$

72,114

$

73,597

Separate accounts2

Beginning assets

$

31,766

$

32,118

$

28,999

$

30,536

$

26,571

Sales3

1,524

2,094

2,891

7,753

6,929

Redemptions3

(1,431)

(1,686)

(1,928)

(5,636)

(5,226)

Net sales3

93

408

963

2,117

1,703

Net exchanges

4

(7)

229

(3)

230

Market gains and losses4

698

(753)

345

(89)

2,032

Ending assets

$

32,561

$

31,766

$

30,536

$

32,561

$

30,536

Total assets 2

Beginning assets

$

104,021

$

107,693

$

101,522

$

104,133

$

94,274

Sales3

7,144

7,835

10,172

32,050

33,255

Redemptions3

(7,928)

(7,902)

(8,183)

(30,383)

(27,876)

Net (redemptions) sales 3

(784)

(67)

1,989

1,667

5,379

Net exchanges

(17)

(27)

(63)

(58)

(82)

Acquisition related

0

0

0

0

301

Market gains and losses/reinvestments1

1,455

(3,578)

685

(1,067)

4,261

Ending assets

$

104,675

$

104,021

$

104,133

$

104,675

$

104,133

1)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates.

2)

Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products.

3)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses.

4)

Reflects the approximate changes in the fair value of the securities held by the portfolios.

 

(unaudited)

MANAGED ASSETS

(in millions)

Dec. 31, 2015

Sept. 30, 2015

June 30,  2015

March 31,  2015

Dec. 31, 2014

By Asset Class

Equity

$

53,556

$

51,956

$

54,789

$

54,037

$

51,426

Fixed-income

51,119

52,065

52,904

53,562

52,707

Money market

256,437

246,937

241,982

248,160

258,772

Total Managed Assets

$

361,112

$

350,958

$

349,675

$

355,759

$

362,905

By Product Type

Funds:

Equity

$

34,125

$

33,273

$

35,533

$

34,951

$

33,141

Fixed-income

37,989

38,982

40,042

41,039

40,456

Money market

221,615

216,252

208,786

214,310

225,471

Total Fund Assets

$

293,729

$

288,507

$

284,361

$

290,300

$

299,068

Separate accounts:

Equity

$

19,431

$

18,683

$

19,256

$

19,086

$

18,285

Fixed-income

13,130

13,083

12,862

12,523

12,251

Money market

34,822

30,685

33,196

33,850

33,301

Total Separate Accounts

$

67,383

$

62,451

$

65,314

$

65,459

$

63,837

Total Managed Assets

$

361,112

$

350,958

$

349,675

$

355,759

$

362,905

AVERAGE MANAGED ASSETS

Quarter Ended

(in millions)

Dec. 31, 2015

Sept. 30, 2015

June 30,  2015

March 31,  2015

Dec. 31, 2014

By Asset Class

Equity

$

54,097

$

54,238

$

55,476

$

52,784

$

50,901

Fixed-income

51,922

52,577

53,319

53,405

52,782

Money market

247,986

245,133

239,774

253,261

246,698

Liquidation portfolio1

0

0

0

0

1,563

Total Avg. Assets

$

354,005

$

351,948

$

348,569

$

359,450

$

351,944

By Product Type

Funds:

Equity

$

34,726

$

35,181

$

35,998

$

34,162

$

32,705

Fixed-income

38,779

39,526

40,574

41,013

41,072

Money market

217,031

213,633

205,943

218,168

216,235

Total Avg. Fund Assets

$

290,536

$

288,340

$

282,515

$

293,343

$

290,012

Separate accounts:

Equity

$

19,371

$

19,057

$

19,478

$

18,622

$

18,196

Fixed-income

13,143

13,051

12,745

12,392

11,710

Money market

30,955

31,500

33,831

35,093

30,463

Total Avg. Separate Accounts

$

63,469

$

63,608

$

66,054

$

66,107

$

60,369

Total Avg. Liquidation Portfolio1

$

0

$

0

$

0

$

0

$

1,563

Total Avg. Managed Assets

$

354,005

$

351,948

$

348,569

$

359,450

$

351,944

1)

Liquidation portfolio represented a portfolio of distressed bonds at cost. Federated had been retained by a third party to manage these assets through an orderly liquidation process that was completed during the fourth quarter of 2014. Management-fee rates earned from this portfolio were lower than those of traditional separate account mandates.

 

(unaudited)

AVERAGE MANAGED ASSETS

Year Ended

(in millions)

Dec. 31, 2015

Dec. 31, 2014

By Asset Class

Equity

$

54,149

$

48,317

Fixed-income

52,805

51,333

Money market

246,539

254,260

Liquidation portfolio1

0

4,557

Total Avg. Assets

$

353,493

$

358,467

By Product Type

Funds:

Equity

$

35,017

$

30,859

Fixed-income

39,973

40,366

Money market

213,694

220,742

Total Avg. Fund Assets

$

288,684

$

291,967

Separate Accounts:

Equity

$

19,132

$

17,458

Fixed-income

12,832

10,967

Money market

32,845

33,518

Total Avg. Separate Accounts

$

64,809

$

61,943

Total Avg. Liquidation Portfolio1

$

0

$

4,557

Total Avg. Managed Assets

$

353,493

$

358,467

1)

Liquidation portfolio represented a portfolio of distressed bonds at cost. Federated had been retained by a third party to manage these assets through an orderly liquidation process that was completed during the fourth quarter of 2014. Management-fee rates earned from this portfolio were lower than those of traditional separate account mandates.

 

SOURCE Federated Investors, Inc.



RELATED LINKS

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