Federated Investors, Inc. Reports Third Quarter 2010 Earnings
- Equity fund flows turn positive for Q3 2010
- Solid fixed-income flows boost bond assets to more than $40 billion
- Board declares $0.24 per share quarterly dividend
PITTSBURGH, Oct. 28 /PRNewswire-FirstCall/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.42 for the quarter ended Sept. 30, 2010 compared to $0.56 for the same quarter last year. Net income was $43.1 million for Q3 2010 compared to $57.0 million for Q3 2009.
Federated reported YTD 2010 EPS of $1.27 compared to $1.42 for the same period in 2009. For the nine months ended Sept. 30, 2010, net income was $132.7 million compared to $145.4 million for the same period in 2009.
Federated's total managed assets were $341.3 billion at Sept. 30, 2010, down $51.0 billion or 13 percent from $392.3 billion at Sept. 30, 2009 and up $4.5 billion or 1 percent from $336.8 billion reported at June 30, 2010. Average managed assets for Q3 2010 were $338.6 billion, down $69.5 billion or 17 percent from $408.1 billion reported for Q3 2009 and up $1.5 billion from $337.1 billion reported for Q2 2010. As the equity and fixed-income markets contracted in 2007 and 2008, Federated's money market assets increased by $182 billion and as markets recovered in 2009 and 2010, Federated's assets reflected industry trends as $95 billion flowed out of Federated's money market products. Since the end of 2006, Federated's money market managed assets have increased $87.3 billion to $260.9 billion at Sept. 30, 2010.
"As investor interest in equities began to increase, Federated saw strong flows into our Strategic Value Dividend Fund and Prudent Bear Fund, both of which are well suited to clients who want a long-term hedge against market uncertainty," said J. Christopher Donahue, president and chief executive officer. "Federated's diversified product mix also benefited investors seeking portfolio balance, as our flagship fixed-income offering, Total Return Bond Fund, continued to see strong flows -- and, in fact, has shown positive net flows for the last 19 quarters."
Federated's board of directors declared a quarterly dividend of $0.24 per share. The dividend is payable on Nov. 15, 2010 to shareholders of record as of Nov. 8, 2010. During Q3 2010, Federated purchased 147,849 shares of Federated class B common stock for $2.7 million.
Federated's fixed-income assets were $40.2 billion at Sept. 30, 2010, up $8.2 billion or 26 percent from $32.0 billion at Sept. 30, 2009 and up $2.2 billion or 6 percent from $38.0 billion at June 30, 2010. Federated experienced continued positive flows into its bond funds during the quarter, bringing total net YTD bond fund inflows to nearly $2.4 billion. Net sales were driven by strong flows into Federated Total Return Bond Fund, a multi-sector product, flows into several short-duration funds and Federated Institutional High Yield Bond Fund.
Federated's equity assets were $29.1 billion at Sept. 30, 2010, the same as equity assets on Sept. 30, 2009 and up $2.3 billion or 9 percent from $26.8 billion at June 30, 2010. Net sales were led by Federated Strategic Value Dividend Fund, Federated Prudent Bear Fund, Federated Max-Cap Index Fund, Federated Clover Small Value Fund and Federated Kaufmann Large Cap Fund.
Money market assets in both funds and separate accounts were $260.9 billion at Sept. 30, 2010, down $57.2 billion or 18 percent from $318.1 billion at Sept. 30, 2009 and up $0.4 billion from $260.5 billion at June 30, 2010. Money market mutual fund assets were $233.6 billion at Sept. 30, 2010, down $54.0 billion or 19 percent from $287.6 billion at Sept. 30, 2009 and up $2.4 billion or 1 percent from $231.2 billion at June 30, 2010. Assets at Sept. 30, 2010 included $11.0 billion transitioned from SunTrust Banks, Inc.'s products late in the quarter. Federated expects an additional $3.5 billion to transition from SunTrust products into Federated money market funds before year-end.
Financial Summary
Q3 2010 vs. Q3 2009
For Q3 2010, revenue decreased by $51.4 million or 18 percent from the same quarter last year. The decrease in revenue primarily reflects a decrease of $42.9 million resulting from lower average money market managed assets. This decrease was partially offset by the impact of increased average fixed-income and equity managed assets. As detailed at the end of this financial summary, voluntary fee waivers related to certain money market funds in order to maintain positive or zero net yields increased during Q3 2010 compared to Q3 2009.
In Q3 2010, Federated derived 51 percent of its revenue from money market assets, 48 percent from fluctuating assets (30 percent from equity assets and 18 percent from fixed-income assets) and 1 percent from other products and services.
Operating expenses for Q3 2010 were $167.1 million compared to $198.9 million for Q3 2009. This decrease was primarily a result of lower distribution expenses due to the aforementioned fee-waiver-related reductions and lower average money market managed assets.
Q3 2010 vs. Q2 2010
Compared to the prior quarter, revenue increased by $10.7 million or 5 percent. As detailed at the end of this financial summary, voluntary fee waivers related to certain money market funds in order to maintain positive or zero net yields decreased during Q3 2010 compared to Q2 2010. In addition, revenue increased due to one additional day in Q3 2010 compared to Q2 2010 and an increase in average fixed-income and money market fund managed assets.
Operating expenses for Q3 2010 increased by $19.5 million or 13 percent compared to Q2 2010, primarily due to the Q2 2010 recognition of insurance proceeds that reduced operating expenses by $25.0 million, partially offset by a noncash impairment charge of $7.0 million during Q2 2010 related to intangible and fixed assets associated with a prior-year acquisition.
YTD 2010 vs. YTD 2009
Revenue for the first nine months of 2010 decreased by $204.5 million or 22 percent compared to the same period last year. The decrease in revenue primarily reflects a $149.8 million decrease resulting from lower average money market managed assets. This decrease was partially offset by the impact of increased average fixed- income and equity managed assets. As detailed at the end of this financial summary, voluntary fee waivers related to certain money market funds in order to maintain positive or zero net yields increased for YTD 2010 compared to YTD 2009.
For YTD 2010, Federated derived 50 percent of its revenue from money market assets, 49 percent from fluctuating assets (31 percent from equity assets and 18 percent from fixed-income assets) and 1 percent from other products and services.
Operating expenses for YTD 2010 decreased by $192.4 million or 29 percent compared to the same period last year. The decrease primarily reflects a decrease in distribution expenses largely related to the aforementioned fee waivers and lower average money market managed assets. The decrease in operating expenses was also attributable to the recognition of insurance proceeds in Q2 2010. In addition, intangible asset impairment and amortization decreased $12.2 million due primarily to the decrease in the impairment charges recorded for certain intangible assets in the first nine months of 2010 as compared to the same period in 2009.
Nonoperating expense increased $5.6 million for YTD 2010 compared to YTD 2009 primarily due to an increase in recourse debt expense associated with the company's term loan, which was amended and restated in Q2 2010 to $425 million.
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 produce positive or zero net yields could vary significantly based on market conditions. The amount of these waivers will be determined by a variety of factors including, but not limited to, available yields on instruments held by the money market funds, changes in assets within money market funds, actions by the Federal Reserve and the U.S. Department of the Treasury, changes in the mix of money market customer assets, changes in expenses of the money market funds and Federated's willingness to continue these waivers.
Money Market Fund Yield Waiver Impact (in millions) |
|||||||||
Quarter Ended |
Nine Months Ended |
||||||||
(Decrease)/Increase |
Sept. 30, 2010 |
Sept. 30, 2009 |
Change Q3 2009 to Q3 2010 |
Quarter ended June 30, 2010 |
Change Q2 2010 to Q3 2010 |
Sept. 30, 2010 |
Sept. 30, 2009 |
Change YTD 2009 to YTD 2010 |
|
Revenue |
$ (53.8) |
$ (36.5) |
$ (17.3) |
$ (58.3) |
$ 4.5 |
$ (181.6) |
$ (63.1) |
$ (118.5) |
|
Distribution expense |
(42.8) |
(27.9) |
(14.9) |
(45.3) |
2.5 |
(139.8) |
(43.8) |
(96.0) |
|
Operating Income |
$ (11.0) |
$ (8.6) |
$ (2.4) |
$ (13.0) |
$ 2.0 |
$ (41.8) |
$ (19.3) |
$ (22.5) |
|
Federated will host an earnings conference call at 9 a.m. Eastern on Friday, Oct. 29, 2010. 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 Us section of FederatedInvestors.com. A replay will be available after 12:30 p.m. and until Nov. 5, 2010 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 358170.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $341.3 billion in assets as of Sept. 30, 2010. With 134 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 5,200 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 fixed-income fund managers and the top 7 percent of equity fund managers(1). For more information, visit FederatedInvestors.com.
(1) Strategic Insight, Aug. 31, 2010. 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 advisor.
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 and the timing of acquisition closings, 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 possibility that acquisitions do not close within anticipated timeframes, and 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 Sept. 30, |
% Change Q3 2009 to Q3 2010 |
Quarter Ended June 30, 2010 |
% Change Q2 2010 to Q3 2010 |
|||
2010 |
2009 |
|||||
Revenue |
||||||
Investment advisory fees, net |
$ 163,783 |
$ 190,012 |
(14)% |
$ 155,954 |
5% |
|
Administrative service fees, net |
53,085 |
65,267 |
(19) |
51,899 |
2 |
|
Other service fees, net |
24,645 |
36,957 |
(33) |
23,083 |
7 |
|
Other, net |
660 |
1,367 |
(52) |
548 |
20 |
|
Total Revenue |
242,173 |
293,603 |
(18) |
231,484 |
5 |
|
Operating Expenses |
||||||
Compensation and related |
61,387 |
62,232 |
(1) |
60,686 |
1 |
|
General and administrative |
||||||
Distribution |
68,800 |
95,911 |
(28) |
62,779 |
10 |
|
Professional service fees |
9,401 |
10,089 |
(7) |
(9,884) |
195 |
|
Office and occupancy |
5,841 |
6,001 |
(3) |
4,853 |
20 |
|
Systems and communications |
5,362 |
6,058 |
(11) |
5,877 |
(9) |
|
Advertising and promotional |
2,724 |
2,529 |
8 |
2,600 |
5 |
|
Travel and related |
2,692 |
2,316 |
16 |
2,884 |
(7) |
|
Other |
4,494 |
4,677 |
(4) |
5,403 |
(17) |
|
Total general and administrative |
99,314 |
127,581 |
(22) |
74,512 |
33 |
|
Intangible asset impairment and amortization |
3,397 |
3,953 |
(14) |
9,311 |
(64) |
|
Amortization of deferred sales commissions |
2,987 |
5,104 |
(41) |
3,114 |
(4) |
|
Total Operating Expenses |
167,085 |
198,870 |
(16) |
147,623 |
13 |
|
Operating Income |
75,088 |
94,733 |
(21) |
83,861 |
(10) |
|
Nonoperating Income (Expenses) |
||||||
Investment income (loss), net |
4,475 |
1,685 |
166 |
(1,608) |
378 |
|
Debt expense––recourse |
(4,958) |
(1,112) |
346 |
(4,619) |
7 |
|
Other, net |
(65) |
(415) |
(84) |
(66) |
(2) |
|
Total Nonoperating (Expenses) Income, net |
(548) |
158 |
(447) |
(6,293) |
(91) |
|
Income before income taxes |
74,540 |
94,891 |
(21) |
77,568 |
(4) |
|
Income tax provision |
26,477 |
34,604 |
(23) |
29,293 |
(10) |
|
Net income including noncontrolling interests in subsidiaries |
48,063 |
60,287 |
(20) |
48,275 |
(0) |
|
Less: Net income attributable to noncontrolling interests in subsidiaries |
5,007 |
3,301 |
52 |
625 |
701 |
|
Net Income |
$ 43,056 |
$ 56,986 |
(24)% |
$ 47,650 |
(10)% |
|
Amounts Attributable to Federated |
||||||
Earnings Per Share(1) |
||||||
Basic and Diluted |
$ 0.42 |
$ 0.56 |
(25)% |
$ 0.46 |
(9)% |
|
Weighted-average shares outstanding |
||||||
Basic |
99,916 |
99,958 |
99,943 |
|||
Diluted |
99,954 |
100,086 |
99,996 |
|||
Dividends declared per share |
$ 0.24 |
$ 0.24 |
$ 0.24 |
|||
1) Unvested share-based payment awards that receive non-forfeitable dividend rights are considered participating securities and are required to be included in the computation of earnings per share under the "two-class method." Total income available to participating restricted shareholders was $1.3 million, $1.4 million and $1.5 million for the quarterly periods ended Sept. 30, 2010, Sept. 30, 2009 and June 30, 2010, respectively. |
||||||
Unaudited Condensed Consolidated Statements of Income (in thousands, except per share data) |
||||
Nine Months Ended Sept. 30, |
% Change |
|||
2010 |
2009 |
|||
Revenue |
||||
Investment advisory fees, net |
$ 474,230 |
$ 574,238 |
(17)% |
|
Administrative service fees, net |
161,233 |
199,726 |
(19) |
|
Other service fees, net |
68,981 |
132,874 |
(48) |
|
Other, net |
2,182 |
4,302 |
(49) |
|
Total Revenue |
706,626 |
911,140 |
(22) |
|
Operating Expenses |
||||
Compensation and related |
186,469 |
192,068 |
(3) |
|
General and administrative |
||||
Distribution |
190,068 |
333,301 |
(43) |
|
Professional service fees |
9,596 |
29,873 |
(68) |
|
Office and occupancy |
16,990 |
18,315 |
(7) |
|
Systems and communications |
16,996 |
17,871 |
(5) |
|
Travel and related |
8,005 |
7,631 |
5 |
|
Advertising and promotional |
7,480 |
8,238 |
(9) |
|
Other |
14,467 |
17,396 |
(17) |
|
Total general and administrative |
263,602 |
432,625 |
(39) |
|
Amortization of deferred sales commissions |
9,274 |
14,936 |
(38) |
|
Intangible asset impairment and amortization |
16,522 |
28,665 |
(42) |
|
Total Operating Expenses |
475,867 |
668,294 |
(29) |
|
Operating Income |
230,759 |
242,846 |
(5) |
|
Nonoperating Income (Expenses) |
||||
Investment income, net |
2,893 |
2,493 |
16 |
|
Debt expense––recourse |
(10,196) |
(3,370) |
203 |
|
Other, net |
(310) |
(1,161) |
(73) |
|
Total Nonoperating Expenses, net |
(7,613) |
(2,038) |
274 |
|
Income before income taxes |
223,146 |
240,808 |
(7) |
|
Income tax provision |
82,613 |
86,970 |
(5) |
|
Net income including noncontrolling interests in subsidiaries |
140,533 |
153,838 |
(9) |
|
Less: Net income attributable to the noncontrolling interests in subsidiaries |
7,820 |
8,444 |
(7) |
|
Net Income |
$ 132,713 |
$ 145,394 |
(9) % |
|
Amounts Attributable to Federated |
||||
Earnings Per Share(1) |
||||
Basic and Diluted |
$ 1.27 |
$ 1.42 |
(11)% |
|
Weighted-average shares outstanding |
||||
Basic |
99,907 |
99,976 |
||
Diluted |
99,991 |
100,096 |
||
Dividends declared per share |
$ 1.98 |
$ 0.72 |
||
1) Unvested share-based payment awards that receive non-forfeitable dividend rights are considered participating securities and are required to be included in the computation of earnings per share under the "two-class method." Total income available to participating restricted shareholders was $5.8 million and $3.5 million the nine months ended Sept. 30, 2010 and Sept. 30, 2009, respectively. |
||||
Unaudited Condensed Consolidated Balance Sheets (in thousands) |
|||
Sept. 30, |
Dec. 31, |
||
2010 |
2009 |
||
Assets |
|||
Cash and other investments |
$ 315,910 |
$ 121,990 |
|
Other current assets |
41,372 |
62,797 |
|
Deferred sales commissions, net |
11,228 |
15,318 |
|
Intangible assets, net and goodwill |
701,254 |
662,996 |
|
Other long-term assets |
49,378 |
49,332 |
|
Total Assets |
$ 1,119,142 |
$ 912,433 |
|
Liabilities and Equity |
|||
Current liabilities |
$ 194,252 |
$ 196,998 |
|
Long-term debt-recourse |
371,875 |
105,000 |
|
Long-term debt-nonrecourse |
6,639 |
13,556 |
|
Other long-term liabilities |
73,013 |
54,151 |
|
Equity excluding treasury stock |
1,269,098 |
1,338,117 |
|
Treasury stock |
(795,735) |
(795,389) |
|
Total Liabilities and Equity |
$ 1,119,142 |
$ 912,433 |
|
Changes in Equity and Fixed-Income Fund Managed Assets (in millions) |
||||||
Quarter Ended |
Nine Months Ended |
|||||
Sept. 30, 2010 |
June 30, 2010 |
Sept. 30, 2009 |
Sept. 30, 2010 |
Sept. 30, 2009 |
||
Equity Funds |
||||||
Beginning assets |
$ 19,344 |
$ 21,445 |
$ 17,966 |
$ 20,960 |
$ 17,562 |
|
Sales |
1,639 |
1,409 |
1,503 |
4,532 |
4,005 |
|
Redemptions |
(1,582) |
(1,851) |
(1,377) |
(5,104) |
(4,119) |
|
Net sales (redemptions) |
57 |
(442) |
126 |
(572) |
(114) |
|
Net exchanges |
(31) |
(13) |
(12) |
(54) |
(79) |
|
Acquisition related |
0 |
0 |
257 |
0 |
257 |
|
Market gains (losses) and reinvestments(1) |
1,955 |
(1,646) |
2,013 |
991 |
2,724 |
|
Ending assets |
$ 21,325 |
$ 19,344 |
$ 20,350 |
$ 21,325 |
$ 20,350 |
|
Fixed-Income Funds |
||||||
Beginning assets |
$ 30,651 |
$ 30,007 |
$ 24,100 |
$ 28,427 |
$ 19,321 |
|
Sales |
3,655 |
3,572 |
4,789 |
11,775 |
12,537 |
|
Redemptions |
(2,829) |
(3,262) |
(2,971) |
(9,393) |
(6,978) |
|
Net sales |
826 |
310 |
1,818 |
2,382 |
5,559 |
|
Net exchanges |
20 |
8 |
53 |
51 |
101 |
|
Market gains and reinvestments(1) |
714 |
326 |
989 |
1,351 |
1,979 |
|
Ending assets |
$ 32,211 |
$ 30,651 |
$ 26,960 |
$ 32,211 |
$ 26,960 |
|
1) Reflects the approximate changes in the market value of the securities held by the funds and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates. |
||||||
Changes in Equity and Fixed-Income Separate Account Assets and Liquidation Portfolios (in millions) |
||||||
Quarter Ended |
Nine Months Ended |
|||||
Sept. 30, 2010 |
June 30, 2010 |
Sept. 30, 2009 |
Sept. 30, 2010 |
Sept. 30, 2009 |
||
Equity Separate Accounts(1) |
||||||
Beginning assets |
$ 7,470 |
$ 8,621 |
$ 8,245 |
$ 8,713 |
$ 9,099 |
|
Sales(2) |
522 |
344 |
— |
1,225 |
— |
|
Redemptions(2) |
(975) |
(692) |
— |
(2,389) |
— |
|
Net redemptions(2) |
(453) |
(348) |
(281) |
(1,164) |
(1,096) |
|
Net exchanges |
9 |
12 |
20 |
31 |
70 |
|
Acquisition related |
0 |
0 |
(257) |
0 |
(257) |
|
Market gains (losses) and reinvestments(3) |
782 |
(815) |
1,047 |
228 |
958 |
|
Ending assets |
$ 7,808 |
$ 7,470 |
$ 8,774 |
$ 7,808 |
$ 8,774 |
|
Fixed-Income Separate Accounts(1) |
||||||
Beginning assets |
$ 7,361 |
$ 5,520 |
$ 4,583 |
$ 5,360 |
$ 4,165 |
|
Sales(2) |
530 |
2,164 |
— |
3,289 |
— |
|
Redemptions(2) |
(244) |
(336) |
— |
(1,078) |
— |
|
Net sales(2) |
286 |
1,828 |
188 |
2,211 |
269 |
|
Market gains and reinvestments(3) |
316 |
13 |
308 |
392 |
645 |
|
Ending assets |
$ 7,963 |
$ 7,361 |
$ 5,079 |
$ 7,963 |
$ 5,079 |
|
Liquidation Portfolios(4) |
||||||
Beginning assets |
$ 11,491 |
$ 11,930 |
$ 556 |
$ 12,596 |
$ 1,505 |
|
Sales(2) |
3 |
3 |
— |
10 |
— |
|
Redemptions(2) |
(423) |
(442) |
— |
(1,535) |
— |
|
Net (redemptions) sales(2) |
(420) |
(439) |
12,516 |
(1,525) |
11,563 |
|
Market gains and reinvestments(3) |
0 |
0 |
1 |
0 |
5 |
|
Ending assets |
$ 11,071 |
$ 11,491 |
$ 13,073 |
$ 11,071 |
$ 13,073 |
|
1) Includes separately managed accounts, institutional accounts and sub-advised funds (both variable annuity and other) and other managed products. 2) 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 (losses) and reinvestments. Sales and Redemptions data was not reported prior to 2010, therefore some historical data is not available. 3) Reflects the approximate changes in the market value of the securities held in the portfolios, and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates. 4) Liquidation portfolios include portfolios of distressed fixed-income securities and liquidating collateralized debt obligation (CDO) products. In the distressed security category, 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. In the case of liquidating CDOs, the CDO structure has unwound earlier than expected due to events of default related to certain distressed securities in the portfolio. Management-fee rates earned from these portfolios are significantly different than those of traditional separate account mandates. |
||||||
MANAGED ASSETS (in millions) |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
Dec. 31, 2009 |
Sept. 30, 2009 |
|
By Asset Class |
||||||
Equity |
$ 29,133 |
$ 26,814 |
$ 30,066 |
$ 29,673 |
$ 29,124 |
|
Fixed-income |
40,174 |
38,012 |
35,527 |
33,787 |
32,039 |
|
Money market |
260,899 |
260,519 |
272,344 |
313,260 |
318,064 |
|
Liquidation portfolios(1) |
11,071 |
11,491 |
11,930 |
12,596 |
13,073 |
|
Total Managed Assets |
$ 341,277 |
$ 336,836 |
$ 349,867 |
$ 389,316 |
$ 392,300 |
|
By Product Type |
||||||
Mutual Funds: |
||||||
Equity |
$ 21,325 |
$ 19,344 |
$ 21,445 |
$ 20,960 |
$ 20,350 |
|
Fixed-income |
32,211 |
30,651 |
30,007 |
28,427 |
26,960 |
|
Money market |
233,611 |
231,205 |
240,160 |
281,569 |
287,634 |
|
Total Fund Assets |
$ 287,147 |
$ 281,200 |
$ 291,612 |
$ 330,956 |
$ 334,944 |
|
Separate Accounts: |
||||||
Equity |
$ 7,808 |
$ 7,470 |
$ 8,621 |
$ 8,713 |
$ 8,774 |
|
Fixed-income |
7,963 |
7,361 |
5,520 |
5,360 |
5,079 |
|
Money market |
27,288 |
29,314 |
32,184 |
31,691 |
30,430 |
|
Total Separate Accounts |
$ 43,059 |
$ 44,145 |
$ 46,325 |
$ 45,764 |
$ 44,283 |
|
Total Liquidation Portfolios(1) |
$ 11,071 |
$ 11,491 |
$ 11,930 |
$ 12,596 |
$ 13,073 |
|
Total Managed Assets |
$ 341,277 |
$ 336,836 |
$ 349,867 |
$ 389,316 |
$ 392,300 |
|
AVERAGE MANAGED ASSETS |
Quarter Ended |
|||||
(in millions) |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
Dec. 31, 2009 |
Sept. 30, 2009 |
|
By Asset Class |
||||||
Equity |
$ 28,033 |
$ 28,781 |
$ 29,493 |
$ 29,343 |
$ 27,872 |
|
Fixed-income |
39,192 |
35,920 |
34,962 |
33,164 |
30,376 |
|
Money market |
260,098 |
260,634 |
290,094 |
312,761 |
336,530 |
|
Liquidation portfolios(1) |
11,313 |
11,759 |
12,320 |
12,881 |
13,370 |
|
Total Avg. Assets |
$ 338,636 |
$ 337,094 |
$ 366,869 |
$ 388,149 |
$ 408,148 |
|
By Product Type |
||||||
Mutual Funds: |
||||||
Equity |
$ 20,411 |
$ 20,590 |
$ 20,971 |
$ 20,625 |
$ 19,215 |
|
Fixed-income |
31,491 |
30,266 |
29,329 |
27,903 |
25,499 |
|
Money market |
232,230 |
230,353 |
255,985 |
283,353 |
304,959 |
|
Total Avg. Fund Assets |
$ 284,132 |
$ 281,209 |
$ 306,285 |
$ 331,881 |
$ 349,673 |
|
Separate Accounts: |
||||||
Equity |
$ 7,622 |
$ 8,191 |
$ 8,522 |
$ 8,718 |
$ 8,657 |
|
Fixed-income |
7,701 |
5,654 |
5,633 |
5,261 |
4,877 |
|
Money market |
27,868 |
30,281 |
34,109 |
29,408 |
31,571 |
|
Total Avg. Separate Accts. |
$ 43,191 |
$ 44,126 |
$ 48,264 |
$ 43,387 |
$ 45,105 |
|
Total Avg. Liquidation Portfolios(1) |
$ 11,313 |
$ 11,759 |
$ 12,320 |
$ 12,881 |
$ 13,370 |
|
Total Avg. Managed Assets |
$ 338,636 |
$ 337,094 |
$ 366,869 |
$ 388,149 |
$ 408,148 |
|
1) Liquidation portfolios include portfolios of distressed fixed-income securities and liquidating collateralized debt obligation (CDO) products. In the distressed security category, 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. In the case of liquidating CDOs, the CDO structure has unwound earlier than expected due to events of default related to certain distressed securities in the portfolio. Management-fee rates earned from these portfolios are significantly different than those of traditional separate account mandates. |
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SOURCE Federated Investors, Inc.
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