Federated Investors, Inc. Reports Second Quarter 2017 Earnings
-- Q2 2017 EPS of $0.53 up 4 percent from $0.51 in Q2 2016
-- Equity assets reach record $65.8 billion
-- Board declares $0.25 per share dividend
PITTSBURGH, July 27, 2017 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.53 for Q2 2017, compared to $0.51 for the same quarter last year on net income of $53.5 million for Q2 2017, compared to $52.7 million for Q2 2016.
Federated's total managed assets were $360.4 billion at June 30, 2017, down $6.8 billion or 2 percent from $367.2 billion at June 30, 2016 and down $1.3 billion from $361.7 billion at March 31, 2017. Lower money market assets were partially offset by higher equity and fixed-income assets at the end of Q2 2017 compared to both the end of Q2 2016 and Q1 2017. Average managed assets for Q2 2017 were $360.0 billion, down $4.2 billion or 1 percent from $364.2 billion reported for Q2 2016 and down $3.2 billion or 1 percent from $363.2 billion reported for Q1 2017.
"Investors showed continued interest in the $7.3 billion Federated Total Return Bond Fund, a core holding with broad fixed-income market exposure, which experienced positive net sales in the second quarter," said J. Christopher Donahue, president and chief executive officer. "Federated also saw positive flows in fixed-income funds overall, including high-yield strategies and a range of short-duration products."
Federated's board of directors declared a dividend of $0.25 per share. The dividend is payable on Aug. 15, 2017 to shareholders of record as of Aug. 8, 2017. During Q2 2017, Federated purchased 580,274 shares of Federated class B common stock for $14.7 million.
Federated's equity assets were a record $65.8 billion at June 30, 2017, up $3.9 billion or 6 percent from $61.9 billion at June 30, 2016 and up $1.0 billion or 2 percent from $64.8 billion at March 31, 2017. Assets in Federated's domestic and international Strategic Value Dividend strategies were a record $40.0 billion at June 30, 2017, up $4.1 billion or 11 percent from $35.9 billion at June 30, 2016 and up $1.1 billion or 3 percent from $38.9 billion at March 31, 2017. Top-selling equity funds during Q2 2017 on a net basis were led by Federated MDT Small Cap Growth Fund and Federated MDT Small Cap Core Fund.
Federated's fixed-income assets were $52.5 billion at June 30, 2017, up $2.2 billion or 4 percent from $50.3 billion at June 30, 2016 and up $0.7 billion or 1 percent from $51.8 billion at March 31, 2017. Top-selling fixed-income funds during Q2 2017 on a net basis included Federated Total Return Bond Fund, Federated Institutional High Yield Bond Fund, Federated Floating Rate Strategic Income Fund and various short-duration strategies.
Money market assets were $242.1 billion at June 30, 2017, down $12.9 billion or 5 percent from $255.0 billion at June 30, 2016 and down $3.1 billion or 1 percent from $245.2 billion at March 31, 2017. Money market fund assets were $173.3 billion at June 30, 2017, down $44.8 billion or 21 percent from $218.1 billion at June 30, 2016 and down $1.9 billion or 1 percent from $175.2 billion at March 31, 2017. Since June 30, 2016 approximately $25 billion in money market assets has transitioned from Federated funds to Federated separate accounts. Federated's money market separate account assets were $68.8 billion at June 30, 2017, up $31.9 billion or 86 percent from $36.9 billion at June 30, 2016 and down $1.2 billion or 2 percent from $70.0 billion at March 31, 2017.
Financial Summary
Q2 2017 vs. Q2 2016
Revenue decreased by $13.9 million or 5 percent primarily due to a decrease in revenue from lower average money market assets and a decrease in revenue resulting from a change in a customer relationship. The decrease in revenue was partially offset by 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. See additional information about voluntary yield-related fee waivers in the table at the end of this financial summary.
During Q2 2017, Federated derived 60 percent of its revenue from equity and fixed-income assets (43 percent from equity assets and 17 percent from fixed-income assets) and 40 percent from money market assets.
Operating expenses decreased by $10.5 million or 5 percent primarily due to a decrease in distribution expenses related to lower average money market fund assets and a change in a customer relationship, partially offset by an increase in distribution expenses related to a decrease in voluntary yield-related fee waivers. The decrease in operating expenses is also attributable to a decrease in compensation and related expenses resulting from lower incentive compensation.
Q2 2017 vs. Q1 2017
Revenue decreased slightly primarily due to a decrease in revenue resulting from a change in a customer relationship and a decrease in revenue from lower average money market assets. The decrease in revenue was partially offset by a decrease in voluntary yield-related fee waivers, having one more day in Q2 2017 vs. Q1 2017 and an increase in revenue from higher average equity assets.
Operating expenses decreased by $7.1 million or 4 percent primarily due to a decrease in distribution expenses related to a change in a customer relationship and lower average money market fund assets, partially offset by an increase in distribution expenses related to a decrease in voluntary yield-related fee waivers. The decrease in operating expenses is also attributable to a decrease in compensation and related expenses resulting from the seasonal decrease in payroll taxes.
YTD 2017 vs. YTD 2016
Revenue decreased by $12.6 million or 2 percent primarily due to a decrease in revenue from lower average money market assets and a decrease in revenue resulting from a change in a customer relationship. The decrease in revenue was partially offset by a decrease in voluntary yield-related fee waivers and an increase in revenue from higher average equity and fixed-income assets.
For the first half of 2017, Federated derived 59 percent of its revenue from equity and fixed-income assets (42 percent from equity assets and 17 percent from fixed-income assets) and 41 percent from money market assets.
Operating expenses decreased by $12.3 million or 3 percent primarily due to a decrease in compensation and related expenses resulting from lower incentive compensation and a decrease in distribution expense related to lower average money market fund assets and a change in a customer relationship. These decreases were partially offset by an increase in distribution expenses related to a decrease in voluntary yield-related fee waivers and an increase related to higher average equity and fixed-income fund assets.
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).
Voluntary yield-related fee waivers and their resulting negative impact could vary in the future as they are contingent on a number of variables as described in Federated's annual and quarterly reports as filed with the SEC.
| Unaudited Money Market Fund Yield Waiver Impact to the Consolidated Statements of Income |
||||||||||||||||||||||||||||||
| (in millions) |
||||||||||||||||||||||||||||||
| Quarter Ended |
Change |
Quarter Ended |
Change |
Six Months Ended |
Change |
|||||||||||||||||||||||||
| June 30, |
June 30, |
March 31, |
June 30, |
June 30, |
||||||||||||||||||||||||||
| Investment advisory fees |
$ |
(0.1) |
$ |
(6.2) |
$ |
6.1 |
$ |
(0.5) |
$ |
0.4 |
$ |
(0.6) |
$ |
(21.2) |
$ |
20.6 |
||||||||||||||
| Other service fees |
0.0 |
(15.1) |
15.1 |
(3.8) |
3.8 |
(3.8) |
(37.6) |
33.8 |
||||||||||||||||||||||
| Total revenue |
(0.1) |
(21.3) |
21.2 |
(4.3) |
4.2 |
(4.4) |
(58.8) |
54.4 |
||||||||||||||||||||||
| Less: Reduction in |
0.1 |
16.5 |
(16.4) |
3.5 |
(3.4) |
3.6 |
44.4 |
(40.8) |
||||||||||||||||||||||
| Operating income |
0.0 |
(4.8) |
4.8 |
(0.8) |
0.8 |
(0.8) |
(14.4) |
13.6 |
||||||||||||||||||||||
| Less: Increase in |
0.0 |
(0.2) |
0.2 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||||||||||||||||||||||
| Pre-tax impact |
$ |
0.0 |
$ |
(5.0) |
$ |
5.0 |
$ |
(0.8) |
$ |
0.8 |
$ |
(0.8) |
$ |
(14.4) |
$ |
13.6 |
||||||||||||||
Federated will host an earnings conference call at 9 a.m. Eastern on July 28, 2017. 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 Federated section of FederatedInvestors.com. A replay will be available from approximately 12:30 p.m. Eastern July 28, 2017 until Aug. 4, 2017 by calling 877-481-4010 (domestic) or 919-882-2331 (international) and entering access code 15978. An online replay will be available via FederatedInvestors.com for one year.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $360.4 billion in assets as of June 30, 2017. With 122 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 8,500 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top 5 percent of equity fund managers in the industry, the top 9 percent of money market fund managers and the top 10 percent of fixed-income fund managers1. For more information, visit FederatedInvestors.com.
1) Strategic Insight, June 30, 2017. 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, investor interest and preferences, performance and demand, asset flows and mix, fee arrangements with customers, expenses, 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, 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 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 |
|||||||||||
| June 30, 2017 |
June 30, 2016 |
March 31, 2017 |
||||||||||||
| Revenue |
||||||||||||||
| Investment advisory fees, net |
$ |
179,322 |
$ |
192,663 |
(7) |
% |
$ |
181,318 |
(1) |
% |
||||
| Administrative service fees, net—affiliates |
45,601 |
53,131 |
(14) |
46,701 |
(2) |
|||||||||
| Other service fees, net |
47,442 |
39,943 |
19 |
45,052 |
5 |
|||||||||
| Other, net |
431 |
1,001 |
(57) |
430 |
0 |
|||||||||
| Total Revenue |
272,796 |
286,738 |
(5) |
273,501 |
0 |
|||||||||
| Operating Expenses |
||||||||||||||
| Distribution |
87,174 |
94,741 |
(8) |
90,359 |
(4) |
|||||||||
| Compensation and related |
71,370 |
75,225 |
(5) |
73,402 |
(3) |
|||||||||
| Systems and communications |
8,041 |
7,767 |
4 |
8,225 |
(2) |
|||||||||
| Office and occupancy |
7,161 |
6,675 |
7 |
7,352 |
(3) |
|||||||||
| Professional service fees |
5,728 |
3,645 |
57 |
6,680 |
(14) |
|||||||||
| Advertising and promotional |
3,095 |
3,938 |
(21) |
2,955 |
5 |
|||||||||
| Travel and related |
2,958 |
3,656 |
(19) |
2,934 |
1 |
|||||||||
| Other |
3,058 |
3,421 |
(11) |
3,821 |
(20) |
|||||||||
| Total Operating Expenses |
188,585 |
199,068 |
(5) |
195,728 |
(4) |
|||||||||
| Operating Income |
84,211 |
87,670 |
(4) |
77,773 |
8 |
|||||||||
| Nonoperating Income (Expenses) |
||||||||||||||
| Investment income, net |
3,937 |
1,105 |
256 |
4,214 |
(7) |
|||||||||
| Debt expense |
(1,182) |
(1,020) |
16 |
(1,102) |
7 |
|||||||||
| Other, net |
(33) |
(2) |
1,550 |
0 |
NM |
|||||||||
| Total Nonoperating Income, net |
2,722 |
83 |
3,180 |
3,112 |
(13) |
|||||||||
| Income before income taxes |
86,933 |
87,753 |
(1) |
80,885 |
7 |
|||||||||
| Income tax provision |
32,274 |
31,335 |
3 |
29,858 |
8 |
|||||||||
| Net income including the noncontrolling interests in subsidiaries |
54,659 |
56,418 |
(3) |
51,027 |
7 |
|||||||||
| Less: Net income attributable to the noncontrolling interests in |
1,208 |
3,709 |
(67) |
1,386 |
(13) |
|||||||||
| Net Income |
$ |
53,451 |
$ |
52,709 |
1 |
% |
$ |
49,641 |
8 |
% |
||||
| Amounts Attributable to Federated Investors, Inc. |
||||||||||||||
| Earnings Per Share1 |
||||||||||||||
| Basic and diluted |
$ |
0.53 |
$ |
0.51 |
4 |
% |
$ |
0.49 |
8 |
% |
||||
| Weighted-average shares outstanding |
||||||||||||||
| Basic |
97,581 |
99,592 |
97,863 |
|||||||||||
| Diluted |
97,582 |
99,593 |
97,864 |
|||||||||||
| Dividends declared per share |
$ |
0.25 |
$ |
0.25 |
$ |
0.25 |
||||||||
| 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 earnings per share under the "two-class method." As such, total net income of $2.2 million, $2.1 million and $2.0 million available to unvested restricted shareholders for the quarterly periods ended June 30, 2017, June 30, 2016 and March 31, 2017, respectively, was excluded from the computation of earnings per share. |
| Unaudited Condensed Consolidated Statements of Income |
||||||||
| (in thousands, except per share data) |
||||||||
| Six Months Ended |
||||||||
| June 30, 2017 |
June 30, 2016 |
% Change |
||||||
| Revenue |
||||||||
| Investment advisory fees, net |
$ |
360,639 |
$ |
374,510 |
(4) |
% |
||
| Administrative service fees, net - affiliates |
92,302 |
106,604 |
(13) |
|||||
| Other service fees, net |
92,494 |
75,841 |
22 |
|||||
| Other, net |
862 |
1,892 |
(54) |
|||||
| Total Revenue |
546,297 |
558,847 |
(2) |
|||||
| Operating Expenses |
||||||||
| Distribution |
177,533 |
183,122 |
(3) |
|||||
| Compensation and related |
144,772 |
151,995 |
(5) |
|||||
| Systems and communications |
16,266 |
15,632 |
4 |
|||||
| Office and occupancy |
14,513 |
13,563 |
7 |
|||||
| Professional service fees |
12,408 |
12,526 |
(1) |
|||||
| Advertising and promotional |
6,051 |
7,380 |
(18) |
|||||
| Travel and related |
5,893 |
6,562 |
(10) |
|||||
| Other |
6,877 |
5,842 |
18 |
|||||
| Total Operating Expenses |
384,313 |
396,622 |
(3) |
|||||
| Operating Income |
161,984 |
162,225 |
0 |
|||||
| Nonoperating Income (Expenses) |
||||||||
| Investment income, net |
8,151 |
3,769 |
116 |
|||||
| Debt expense |
(2,283) |
(2,079) |
10 |
|||||
| Other, net |
(34) |
(7) |
386 |
|||||
| Total Nonoperating Income, net |
5,834 |
1,683 |
247 |
|||||
| Income before income taxes |
167,818 |
163,908 |
2 |
|||||
| Income tax provision |
62,132 |
58,531 |
6 |
|||||
| Net income including the noncontrolling interests in subsidiaries |
105,686 |
105,377 |
0 |
|||||
| Less: Net income attributable to the noncontrolling interests in subsidiaries |
2,594 |
7,225 |
(64) |
|||||
| Net Income |
$ |
103,092 |
$ |
98,152 |
5 |
% |
||
| Amounts Attributable to Federated Investors, Inc. |
||||||||
| Earnings Per Share1 |
||||||||
| Basic and diluted |
$ |
1.01 |
$ |
0.94 |
7 |
% |
||
| Weighted-average shares outstanding |
||||||||
| Basic |
97,722 |
99,697 |
||||||
| Diluted |
97,723 |
99,698 |
||||||
| Dividends declared per share |
$ |
0.50 |
$ |
0.50 |
||||
| 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 earnings per share under the "two-class method." As such, total net income of $4.1 million and $3.9 million available to unvested restricted shareholders for the six months ended June 30, 2017 and June 30, 2016, respectively, was excluded from the computation of earnings per share. |
| Unaudited Condensed Consolidated Balance Sheets |
||||||
| (in thousands) |
June 30, 2017 |
Dec. 31, 2016 |
||||
| Assets |
||||||
| Cash and other investments |
$ |
282,775 |
$ |
301,149 |
||
| Other current assets |
61,608 |
58,611 |
||||
| Intangible assets, net, including goodwill |
737,202 |
733,137 |
||||
| Other long-term assets |
59,206 |
62,210 |
||||
| Total Assets |
$ |
1,140,791 |
$ |
1,155,107 |
||
| Liabilities, Redeemable Noncontrolling Interests and Equity |
||||||
| Current liabilities |
$ |
94,679 |
$ |
162,538 |
||
| Long-term debt |
178,500 |
165,750 |
||||
| Other long-term liabilities |
205,321 |
199,673 |
||||
| Redeemable noncontrolling interests |
30,662 |
31,362 |
||||
| Equity excluding treasury stock |
901,042 |
851,166 |
||||
| Treasury stock |
(269,413) |
(255,382) |
||||
| Total Liabilities, Redeemable Noncontrolling Interests and Equity |
$ |
1,140,791 |
$ |
1,155,107 |
||
| Unaudited Changes in Equity and Fixed-Income Fund and Separate Account Assets |
|||||||||||||||||||||||||||||
| (in millions) |
|||||||||||||||||||||||||||||
| Quarter Ended |
Six Months Ended |
||||||||||||||||||||||||||||
| June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
June 30, 2017 |
June 30, 2016 |
|||||||||||||||||||||||||
| Equity funds |
|||||||||||||||||||||||||||||
| Beginning assets |
$ |
37,159 |
$ |
36,231 |
$ |
34,935 |
$ |
36,231 |
$ |
34,125 |
|||||||||||||||||||
| Sales |
1,411 |
1,703 |
3,117 |
3,114 |
6,556 |
||||||||||||||||||||||||
| Redemptions |
(2,394) |
(3,047) |
(2,294) |
(5,441) |
(4,814) |
||||||||||||||||||||||||
| Net (redemptions) sales |
(983) |
(1,344) |
823 |
(2,327) |
1,742 |
||||||||||||||||||||||||
| Net exchanges |
(74) |
60 |
(16) |
(14) |
(53) |
||||||||||||||||||||||||
| Acquisition-related |
0 |
287 |
0 |
287 |
0 |
||||||||||||||||||||||||
| Market gains and losses1 |
1,123 |
1,925 |
1,334 |
3,048 |
1,262 |
||||||||||||||||||||||||
| Ending assets |
$ |
37,225 |
$ |
37,159 |
$ |
37,076 |
$ |
37,225 |
$ |
37,076 |
|||||||||||||||||||
| Equity separate accounts2 |
|||||||||||||||||||||||||||||
| Beginning assets |
$ |
27,611 |
$ |
26,150 |
$ |
21,550 |
$ |
26,150 |
$ |
19,431 |
|||||||||||||||||||
| Sales3 |
1,852 |
1,912 |
3,156 |
3,764 |
5,506 |
||||||||||||||||||||||||
| Redemptions3 |
(1,835) |
(1,994) |
(1,153) |
(3,829) |
(2,382) |
||||||||||||||||||||||||
| Net sales (redemptions)3 |
17 |
(82) |
2,003 |
(65) |
3,124 |
||||||||||||||||||||||||
| Market gains and losses1 |
934 |
1,543 |
1,232 |
2,477 |
2,230 |
||||||||||||||||||||||||
| Ending assets |
$ |
28,562 |
$ |
27,611 |
$ |
24,785 |
$ |
28,562 |
$ |
24,785 |
|||||||||||||||||||
| Total equity2 |
|||||||||||||||||||||||||||||
| Beginning assets |
$ |
64,770 |
$ |
62,381 |
$ |
56,485 |
$ |
62,381 |
$ |
53,556 |
|||||||||||||||||||
| Sales3 |
3,263 |
3,615 |
6,273 |
6,878 |
12,062 |
||||||||||||||||||||||||
| Redemptions3 |
(4,229) |
(5,041) |
(3,447) |
(9,270) |
(7,196) |
||||||||||||||||||||||||
| Net (redemptions) sales3 |
(966) |
(1,426) |
2,826 |
(2,392) |
4,866 |
||||||||||||||||||||||||
| Net exchanges |
(74) |
60 |
(16) |
(14) |
(53) |
||||||||||||||||||||||||
| Acquisition-related |
0 |
287 |
0 |
287 |
0 |
||||||||||||||||||||||||
| Market gains and losses1 |
2,057 |
3,468 |
2,566 |
5,525 |
3,492 |
||||||||||||||||||||||||
| Ending assets |
$ |
65,787 |
$ |
64,770 |
$ |
61,861 |
$ |
65,787 |
$ |
61,861 |
|||||||||||||||||||
| Fixed-income funds |
|||||||||||||||||||||||||||||
| Beginning assets |
$ |
40,239 |
$ |
39,434 |
$ |
37,826 |
$ |
39,434 |
$ |
37,989 |
|||||||||||||||||||
| Sales |
3,729 |
3,986 |
3,467 |
7,715 |
6,801 |
||||||||||||||||||||||||
| Redemptions |
(3,591) |
(3,831) |
(3,364) |
(7,422) |
(7,444) |
||||||||||||||||||||||||
| Net sales (redemptions) |
138 |
155 |
103 |
293 |
(643) |
||||||||||||||||||||||||
| Net exchanges |
10 |
(24) |
18 |
(14) |
(31) |
||||||||||||||||||||||||
| Acquisition-related |
0 |
148 |
0 |
148 |
0 |
||||||||||||||||||||||||
| Market gains and losses1 |
493 |
526 |
664 |
1,019 |
1,296 |
||||||||||||||||||||||||
| Ending assets |
$ |
40,880 |
$ |
40,239 |
$ |
38,611 |
$ |
40,880 |
$ |
38,611 |
|||||||||||||||||||
| Fixed-income separate accounts2 |
|||||||||||||||||||||||||||||
| Beginning assets |
$ |
11,541 |
$ |
11,880 |
$ |
13,352 |
$ |
11,880 |
$ |
13,130 |
|||||||||||||||||||
| Sales3 |
277 |
214 |
147 |
491 |
344 |
||||||||||||||||||||||||
| Redemptions3 |
(401) |
(695) |
(2,105) |
(1,096) |
(2,433) |
||||||||||||||||||||||||
| Net redemptions3 |
(124) |
(481) |
(1,958) |
(605) |
(2,089) |
||||||||||||||||||||||||
| Net exchanges |
0 |
(56) |
0 |
(56) |
0 |
||||||||||||||||||||||||
| Market gains and losses1 |
210 |
198 |
320 |
408 |
673 |
||||||||||||||||||||||||
| Ending assets |
$ |
11,627 |
$ |
11,541 |
$ |
11,714 |
$ |
11,627 |
$ |
11,714 |
|||||||||||||||||||
| Total fixed income2 |
|||||||||||||||||||||||||||||
| Beginning assets |
$ |
51,780 |
$ |
51,314 |
$ |
51,178 |
$ |
51,314 |
$ |
51,119 |
|||||||||||||||||||
| Sales3 |
4,006 |
4,200 |
3,614 |
8,206 |
7,145 |
||||||||||||||||||||||||
| Redemptions3 |
(3,992) |
(4,526) |
(5,469) |
(8,518) |
(9,877) |
||||||||||||||||||||||||
| Net sales (redemptions)3 |
14 |
(326) |
(1,855) |
(312) |
(2,732) |
||||||||||||||||||||||||
| Net exchanges |
10 |
(80) |
18 |
(70) |
(31) |
||||||||||||||||||||||||
| Acquisition-related |
0 |
148 |
0 |
148 |
0 |
||||||||||||||||||||||||
| Market gains and losses1 |
703 |
724 |
984 |
1,427 |
1,969 |
||||||||||||||||||||||||
| Ending assets |
$ |
52,507 |
$ |
51,780 |
$ |
50,325 |
$ |
52,507 |
$ |
50,325 |
|||||||||||||||||||
| 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 total investment return. |
| Unaudited Total Changes in Equity and Fixed-Income Assets |
|||||||||||||||||||||||||||||
| (in millions) |
|||||||||||||||||||||||||||||
| Quarter Ended |
Six Months Ended |
||||||||||||||||||||||||||||
| June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
June 30, 2017 |
June 30, 2016 |
|||||||||||||||||||||||||
| Funds |
|||||||||||||||||||||||||||||
| Beginning assets |
$ |
77,398 |
$ |
75,665 |
$ |
72,761 |
$ |
75,665 |
$ |
72,114 |
|||||||||||||||||||
| Sales |
5,140 |
5,689 |
6,584 |
10,829 |
13,357 |
||||||||||||||||||||||||
| Redemptions |
(5,985) |
(6,878) |
(5,658) |
(12,863) |
(12,258) |
||||||||||||||||||||||||
| Net (redemptions) sales |
(845) |
(1,189) |
926 |
(2,034) |
1,099 |
||||||||||||||||||||||||
| Net exchanges |
(64) |
36 |
2 |
(28) |
(84) |
||||||||||||||||||||||||
| Acquisition-related |
0 |
435 |
0 |
435 |
0 |
||||||||||||||||||||||||
| Market gains and losses1 |
1,616 |
2,451 |
1,998 |
4,067 |
2,558 |
||||||||||||||||||||||||
| Ending assets |
$ |
78,105 |
$ |
77,398 |
$ |
75,687 |
$ |
78,105 |
$ |
75,687 |
|||||||||||||||||||
| Separate accounts2 |
|||||||||||||||||||||||||||||
| Beginning assets |
$ |
39,152 |
$ |
38,030 |
$ |
34,902 |
$ |
38,030 |
$ |
32,561 |
|||||||||||||||||||
| Sales3 |
2,129 |
2,126 |
3,303 |
4,255 |
5,850 |
||||||||||||||||||||||||
| Redemptions3 |
(2,236) |
(2,689) |
(3,258) |
(4,925) |
(4,815) |
||||||||||||||||||||||||
| Net (redemptions) sales3 |
(107) |
(563) |
45 |
(670) |
1,035 |
||||||||||||||||||||||||
| Net exchanges |
0 |
(56) |
0 |
(56) |
0 |
||||||||||||||||||||||||
| Market gains and losses1 |
1,144 |
1,741 |
1,552 |
2,885 |
2,903 |
||||||||||||||||||||||||
| Ending assets |
$ |
40,189 |
$ |
39,152 |
$ |
36,499 |
$ |
40,189 |
$ |
36,499 |
|||||||||||||||||||
| Total assets 2 |
|||||||||||||||||||||||||||||
| Beginning assets |
$ |
116,550 |
$ |
113,695 |
$ |
107,663 |
$ |
113,695 |
$ |
104,675 |
|||||||||||||||||||
| Sales3 |
7,269 |
7,815 |
9,887 |
15,084 |
19,207 |
||||||||||||||||||||||||
| Redemptions3 |
(8,221) |
(9,567) |
(8,916) |
(17,788) |
(17,073) |
||||||||||||||||||||||||
| Net (redemptions) sales3 |
(952) |
(1,752) |
971 |
(2,704) |
2,134 |
||||||||||||||||||||||||
| Net exchanges |
(64) |
(20) |
2 |
(84) |
(84) |
||||||||||||||||||||||||
| Acquisition-related |
0 |
435 |
0 |
435 |
0 |
||||||||||||||||||||||||
| Market gains and losses1 |
2,760 |
4,192 |
3,550 |
6,952 |
5,461 |
||||||||||||||||||||||||
| Ending assets |
$ |
118,294 |
$ |
116,550 |
$ |
112,186 |
$ |
118,294 |
$ |
112,186 |
|||||||||||||||||||
| 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 total investment return. |
| Unaudited Managed Assets (in millions) |
June 30, 2017 |
March 31, 2017 |
Dec. 31, 2016 |
Sept. 30, 2016 |
June 30, 2016 |
||||||||||
| By Asset Class |
|||||||||||||||
| Equity |
$ |
65,787 |
$ |
64,770 |
$ |
62,381 |
$ |
64,114 |
$ |
61,861 |
|||||
| Fixed-income |
52,507 |
51,780 |
51,314 |
51,844 |
50,325 |
||||||||||
| Money market |
242,096 |
245,198 |
252,213 |
248,366 |
254,992 |
||||||||||
| Total Managed Assets |
$ |
360,390 |
$ |
361,748 |
$ |
365,908 |
$ |
364,324 |
$ |
367,178 |
|||||
| By Product Type |
|||||||||||||||
| Funds: |
|||||||||||||||
| Equity |
$ |
37,225 |
$ |
37,159 |
$ |
36,231 |
$ |
37,777 |
$ |
37,076 |
|||||
| Fixed-income |
40,880 |
40,239 |
39,434 |
39,796 |
38,611 |
||||||||||
| Money market |
173,338 |
175,232 |
206,411 |
209,382 |
218,107 |
||||||||||
| Total Fund Assets |
$ |
251,443 |
$ |
252,630 |
$ |
282,076 |
$ |
286,955 |
$ |
293,794 |
|||||
| Separate Accounts: |
|||||||||||||||
| Equity |
$ |
28,562 |
$ |
27,611 |
$ |
26,150 |
$ |
26,337 |
$ |
24,785 |
|||||
| Fixed-income |
11,627 |
11,541 |
11,880 |
12,048 |
11,714 |
||||||||||
| Money market |
68,758 |
69,966 |
45,802 |
38,984 |
36,885 |
||||||||||
| Total Separate Account Assets |
$ |
108,947 |
$ |
109,118 |
$ |
83,832 |
$ |
77,369 |
$ |
73,384 |
|||||
| Total Managed Assets |
$ |
360,390 |
$ |
361,748 |
$ |
365,908 |
$ |
364,324 |
$ |
367,178 |
|||||
| Unaudited Average Managed Assets |
Quarter Ended |
||||||||||||||
| (in millions) |
June 30, 2017 |
March 31, 2017 |
Dec. 31, 2016 |
Sept. 30, 2016 |
June 30, 2016 |
||||||||||
| By Asset Class |
|||||||||||||||
| Equity |
$ |
65,399 |
$ |
63,780 |
$ |
62,575 |
$ |
63,682 |
$ |
58,680 |
|||||
| Fixed-income |
52,291 |
51,802 |
51,526 |
51,446 |
50,793 |
||||||||||
| Money market |
242,298 |
247,591 |
244,197 |
250,292 |
254,693 |
||||||||||
| Total Avg. Managed Assets |
$ |
359,988 |
$ |
363,173 |
$ |
358,298 |
$ |
365,420 |
$ |
364,166 |
|||||
| By Product Type |
|||||||||||||||
| Funds: |
|||||||||||||||
| Equity |
$ |
37,325 |
$ |
36,957 |
$ |
36,667 |
$ |
37,902 |
$ |
35,891 |
|||||
| Fixed-income |
40,670 |
40,086 |
39,571 |
39,527 |
38,214 |
||||||||||
| Money market |
172,626 |
182,418 |
203,474 |
213,078 |
217,226 |
||||||||||
| Total Avg. Fund Assets |
$ |
250,621 |
$ |
259,461 |
$ |
279,712 |
$ |
290,507 |
$ |
291,331 |
|||||
| Separate Accounts: |
|||||||||||||||
| Equity |
$ |
28,074 |
$ |
26,823 |
$ |
25,908 |
$ |
25,780 |
$ |
22,789 |
|||||
| Fixed-income |
11,621 |
11,716 |
11,955 |
11,919 |
12,579 |
||||||||||
| Money market |
69,672 |
65,173 |
40,723 |
37,214 |
37,467 |
||||||||||
| Total Avg. Separate Account Assets |
$ |
109,367 |
$ |
103,712 |
$ |
78,586 |
$ |
74,913 |
$ |
72,835 |
|||||
| Total Avg. Managed Assets |
$ |
359,988 |
$ |
363,173 |
$ |
358,298 |
$ |
365,420 |
$ |
364,166 |
|||||
| Unaudited Average Managed Assets |
Six Months Ended |
|||||||
| (in millions) |
June 30, 2017 |
June 30, 2016 |
||||||
| By Asset Class |
||||||||
| Equity |
$ |
64,590 |
$ |
55,733 |
||||
| Fixed-income |
52,047 |
50,836 |
||||||
| Money market |
244,944 |
257,448 |
||||||
| Total Avg. Managed Assets |
$ |
361,581 |
$ |
364,017 |
||||
| By Product Type |
||||||||
| Funds: |
||||||||
| Equity |
$ |
37,141 |
$ |
34,406 |
||||
| Fixed-income |
40,378 |
37,995 |
||||||
| Money market |
177,522 |
219,537 |
||||||
| Total Avg. Fund Assets |
$ |
255,041 |
$ |
291,938 |
||||
| Separate Accounts: |
||||||||
| Equity |
$ |
27,449 |
$ |
21,327 |
||||
| Fixed-income |
11,669 |
12,841 |
||||||
| Money market |
67,422 |
37,911 |
||||||
| Total Avg. Separate Account Assets |
$ |
106,540 |
$ |
72,079 |
||||
| Total Avg. Managed Assets |
$ |
361,581 |
$ |
364,017 |
||||
SOURCE Federated Investors, Inc.
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