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.