Federated Investors, Inc. Reports Third Quarter 2012 Earnings; Board Declares Cash Dividend Per Share of $1.75 Including $0.24

Federated Investors, Inc. Reports Third Quarter 2012 Earnings; Board Declares
 Cash Dividend Per Share of $1.75 Including $0.24 Quarterly and $1.51 Special
                                   Dividend

- Equity and fixed-income assets increase $4 billion during Q3 2012 to a
record $94 billion

- Assets in strategic-value dividend strategies increase $3.6 billion for YTD
2012 to $13.8 billion

PR Newswire

PITTSBURGH, Oct. 25, 2012

PITTSBURGH, Oct. 25, 2012 /PRNewswire/ -- Federated Investors, Inc. (NYSE:
FII), one of the nation's largest investment managers, today reported earnings
per diluted share (EPS) of $0.54 for the quarter ended Sept.30, 2012 as
compared to $0.37 for the same quarter last year. Net income was $55.8
million for Q3 2012 compared to $38.3 million for Q3 2011. Federated's Q3
2012 financial results include the recognition of insurance proceeds, which
reduced pre-tax operating expenses by $17.3 million and increased EPS by $0.11
per share, after tax. Federated reported YTD 2012 EPS of $1.33 compared to
$1.09 for the same period in 2011 and net income of $138.5 million compared
to $114.0 million for the same period last year.

Federated's total managed assets were $364.1 billion at Sept.30, 2012, up
$12.4 billion or 4 percent from $351.7 billion at Sept.30, 2011 and up $8.2
billion or 2 percent from $355.9 billion reported at June30, 2012. Average
managed assets for Q3 2012 were $360.9 billion, up $12.1 billion or 3 percent
from $348.8 billion reported for Q3 2011 and up $0.3 billion from $360.6
billion reported for Q2 2012. Net sales of equity and fixed-income funds and
separate accounts were $1.9 billion for Q3 2012.

"Federated continued to see client demand for our dividend-paying equity
portfolios with more than $2.5 billion in net sales in those products in the
first nine months of the year," said J.Christopher Donahue, president and
chief executive officer. "On the international side, Federated made
significant moves to grow our global profile by hiring an executive to lead
our new Asia Pacific initiative and expanding our European distribution
capabilities through an agreement with Bury Street Capital, a successful
European distribution firm based in London."

Federated's board of directors declared a dividend of $1.75 per share. The
dividend, which will be paid from Federated's existing cash balance, is
considered an ordinary dividend for tax purposes and consists of a $0.24
quarterly dividend and a $1.51 special dividend. The dividend is payable on
Nov. 15, 2012 to shareholders of record as of Nov. 8, 2012. The special
dividend is expected to decrease EPS for Q4 2012 by approximately $0.04 and
for full-year 2012 by approximately $0.02 due to the application of the
two-class method of calculating EPS. During Q3 2012, Federated purchased
152,244 shares of Federated class B common stock for $3.0 million.

"The payment of the November special dividend returns cash to shareholders and
is a recognition that Federated's business mix of equity, fixed-income and
moneymarket strategies allows the company to continue to succeed in
challenging markets," said ThomasR. Donahue, chief financial officer.

Federated's equity assets were $35.4 billion at Sept.30, 2012, up $7.4
billion or 26 percent from $28.0 billion at Sept.30, 2011 and up $2.2 billion
or 7 percent from $33.2 billion at June30, 2012. Top-selling equity funds
during Q3 2012 on a net basis were Federated Strategic Value Dividend Fund,
Federated International Strategic Value Dividend Fund, Federated Capital
Income Fund, Federated Managed Volatility Fund II and Federated Clover Small
Value Fund.

Federated's fixed-income assets were a record $51.4 billion at Sept.30, 2012,
up $8.5 billion or 20 percent from $42.9 billion at Sept.30, 2011 and up $2.4
billion or 5 percent from $49.0 billion at June30, 2012. Fixed-income assets
in liquidation portfolios were $7.7 billion at Sept.30, 2012. Fixed-income
sales were driven by strong net flows into Federated Institutional High Yield
Bond Fund, Federated's Capital Preservation Fund, Federated Municipal
Ultrashort Fund, Federated Short-Intermediate Duration Municipal Trust and
Federated Strategic Income Fund.

Money market assets in both funds and separate accounts were $269.6 billion at
Sept.30, 2012, down $2.1 billion or 1 percent from $271.7 billion at
Sept.30, 2011 and up $4.1 billion or 2 percent from $265.5 billion at
June30, 2012. Money market mutual fund assets were $244.8 billion at Sept.
30, 2012, down $0.5 billion from $245.3 billion at Sept.30, 2011 and up $6.2
billion or 3 percent from $238.6 billion at June30, 2012. Additionally,
Federated announced in July that the commonwealth of Massachusetts had
selected the company to manage two pools of assets with more than $9 billion
in liquidity and short-term bond assets. Federated is expected to begin
managing those assets in early 2013.

Financial Summary

Q3 2012 vs. Q3 2011

Revenue increased by $24.4 million or 11 percent due primarily to a decrease
of $19.4 million in voluntary fee waivers related to certain money market
funds in order for these funds to maintain positive or zero net yields. The
reduction in fee waivers was primarily the result of improved yields available
on securities held by money market funds. In addition, revenue increased due
to an increase in average fixed-income and equity assets. See additional
information about voluntary fee waivers in the table at the end of this
financial summary.

During Q3 2012, Federated derived 52 percent of its revenue from equity and
fixed-income assets (31 percent from equity assets and 21 percent from
fixed-income assets), 47 percent from money market assets and 1 percent from
other products and services.

Operating expenses increased $1.4 million or 1 percent primarily as a result
of an increase in distribution expense related primarily to reduced fee
waivers and increased compensation and related expense. These increases were
offset by the aforementioned recognition of insurance proceeds recorded as a
reduction to professional service fees.

Q3 2012 vs. Q2 2012

Revenue increased by $6.3 million or 3 percent primarily due to one additional
day in the quarter, an increase in average fixed-income and equity assets and
a decrease in the aforementioned voluntary fee waivers due mainly to improved
yields available on securities held by money market funds.

Operating expenses decreased by $14.7 million or 9 percent primarily related
to the aforementioned recognition of insurance proceeds.

YTD 2012 vs. YTD 2011

Revenue for the first nine months of 2012 increased by $22.2 million, or 3
percent compared to the first nine months of 2011. The increase in revenue
was primarily related to an increase in average fixed-income assets and
decrease in the aforementioned voluntary fee waivers primarily as a result of
improved yields available on securities held by money market funds partially
offset by higher average money market fund assets. These revenue increases
were partially offset by a decrease due to a change in the mix of average
equity assets.

For the first nine months of 2012, Federated derived 52 percent of its revenue
from equity and fixed-income assets (31 percent from equity assets and 21
percent from fixed-income assets), 47 percent from money market assets and 1
percent from other products and services.

Operating expenses for the first nine months of 2012 decreased by $11.6
million or 2 percent compared to the same period last year. The decrease
primarily reflects lower professional service fees due to the aforementioned
recognition of insurance proceeds and nonrecurring legal expenses incurred in
Q1 2011. This decrease was partially offset by increases in distribution and
compensation and related expenses.

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 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 and other governmental entities,
changes in expenses of the money market funds, changes in the mix of money
market customer assets, 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
(in millions)
                                        Change   Quarter   Change                         Change
                    Quarter Ended       Q3 2011  Ended     Q2 2012  Nine Months Ended     YTD
                                        to                 to                             2011 to
(Decrease)/Increase Sept.30, Sept.30, Q32012  June30,  Q32012  Sept.30,  Sept.30,  YTD
                    2012      2011               2012               2012       2011       2012
Investment advisory $ (41.2)  $ (57.2)  $ 16.0   $ (43.0)  $  1.8   $ (137.2)  $ (142.8)  $ 5.6
fees
Other service fees  (28.3)    (31.7)    3.4      (27.3)    (1.0)    (83.0)     (88.9)     5.9
Total Revenue       $ (69.5)  $ (88.9)  $ 19.4   $ (70.3)  $  0.8   $ (220.2)  $ (231.7)  $ 11.5
Distribution        (52.9)    (63.2)    10.3     (53.1)    0.2      (163.6)    (170.5)    6.9
expense
Operating income    $ (16.6)  $ (25.7)  $ 9.1    $ (17.2)  $  0.6   $ (56.6)   $ (61.2)   $ 4.6
Noncontrolling      (0.3)     (2.5)     2.2      0.0       (0.3)    (0.9)      (5.5)      4.6
interest
Pre-tax impact      $ (16.3)  $ (23.2)  $ 6.9    $ (17.2)  $  0.9   $ (55.7)   $ (55.7)   $ 0.0

Federated will host an earnings conference call at 9 a.m. Eastern on Oct. 26,
2012. 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 after 12:30 p.m. and through Nov. 2, 2012 by calling
877-660-6853 (domestic) or 201-612-7415 (international) and entering access
code 401060.

Federated Investors, Inc. is one of the largest investment managers in the
United States, managing $364.1 billion in assets as ofSept. 30, 2012. With
136 funds and a variety of separately managed account options, Federated
provides comprehensive investment management to approximately 4,700
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 7 percent of
fixed-income fund managers^1. For more information, visit
FederatedInvestors.com.

1 Strategic Insight, Aug. 31, 2012. 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 incurred by the company, product demand and asset flows, growth
opportunities, and expected impact of the dividend to EPS, 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 or
achieve new growth opportunities, 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)
                                                                      % Change
                    Quarter Ended              % Change Quarter Ended
                                               Q3 2011                Q2 2012
                    Sept.30,     Sept.30,    to Q3
                    2012          2011         2012     June30, 2012 to Q3
                                                                      2012
Revenue
Investment advisory $  160,306    $  139,399   15     % $  154,367    4      %
fees, net
Administrative      55,879        54,928       2        54,986        2
service fees, net
Other service fees, 21,421        19,008       13       22,007        (3)
net
Other, net          862           713          21       772           12
Total Revenue       238,468       214,048      11       232,132       3
Operating Expenses
Compensation and    65,131        57,930       12       65,215        0
related
Distribution        64,146        54,440       18       62,328        3
Professional        (7,864)       9,437        (183)    9,932         (179)
service fees
Systems and         6,532         5,825        12       6,773         (4)
communications
Office and          6,108         6,202        (2)      6,119         0
occupancy
Advertising and     3,559         3,887        (8)      3,316         7
promotional
Travel and related  2,913         2,809        4        3,336         (13)
Intangible asset    799           1,263        (37)     822           (3)
related
Other               7,111         5,244        36       5,271         35
Total Operating     148,435       147,037      1        163,112       (9)
Expenses
Operating Income    90,033        67,011       34       69,020        30
Nonoperating Income
(Expenses)
Investment income   3,706         (1,271)      392      2,272         63
(loss), net
Debt expense        (3,534)       (3,972)      (11)     (3,690)       (4)
Other, net          (29)          (83)         (65)     (128)         (77)
Total Nonoperating
Income (Expenses),  143           (5,326)      103      (1,546)       109
net
Income before       90,176        61,685       46       67,474        34
income taxes
Income tax          31,983        23,165       38       24,401        31
provision
Net income
including
noncontrolling      58,193        38,520       51       43,073        35
interest in
subsidiaries
Less: Net income
attributable to the
noncontrolling      2,420         200          1,110    2,663         (9)
interest in
subsidiaries
Net Income          $  55,773     $  38,320    46     % $  40,410     38     %
Amounts
Attributable to
Federated
Earnings Per
Share^1
Basic and Diluted   $  0.54       $  0.37      46     % $  0.39       38     %
Weighted-average
shares outstanding
Basic and diluted   100,417       100,684               100,347
Dividends declared  $  0.24       $  0.24               $  0.24
per share
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 $2.0 million, $1.2 million and $1.5 million
available to unvested restricted shares for the quarterly periods ended Sept.
30, 2012, Sept. 30, 2011 and June 30, 2012, 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, 2012        Sept.30, 2011
Revenue
Investment advisory fees,   $      464,020        $    448,115      4      %
net
Administrative service      168,157               163,527           3
fees, net
Other service fees, net     66,084                65,136            1
Other, net                  2,620                 1,930             36
Total Revenue               700,881               678,708           3
Operating Expenses
Compensation and related    194,411               184,819           5
Distribution                188,168               176,930           6
Systems and communications  19,615                17,131            15
Office and occupancy        18,479                18,436            0
Professional service fees   12,376                44,171            (72)
Advertising and promotional 9,802                 9,889             (1)
Travel and related          9,000                 8,501             6
Intangible asset related    1,642                 6,672             (75)
Other                       17,988                16,565            9
Total Operating Expenses    471,481               483,114           (2)
Operating Income            229,400               195,594           17
Nonoperating Income
(Expenses)
Investment income, net      9,325                 3,721             151
Debt expense                (10,935)              (13,187)          (17)
Other, net                  (195)                 (192)             2
Total Nonoperating          (1,805)               (9,658)           (81)
Expenses, net
Income before income taxes  227,595               185,936           22
Income tax provision        81,922                69,477            18
Net income including
noncontrolling interest in  145,673               116,459           25
subsidiaries
Less: Net income
attributable to the         7,165                 2,495             187
noncontrolling interest in
subsidiaries
Net Income                  $      138,508        $    113,964      22     %
Amounts Attributable to
Federated
Earnings Per Share^1
Basic and Diluted           $      1.33           $    1.09         22     %
Weighted-average shares
outstanding
Basic                       100,292               100,725
Diluted                     100,292               100,756
Dividends declared per      $      0.72           $    0.72
share
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 $5.0 million and $3.7 million available to unvested
restricted shares for the nine months ended Sept. 30, 2012 and Sept. 30, 2011,
respectively, was excluded from the computation of earnings per share.



Unaudited Condensed Consolidated Balance Sheets
(in thousands)                                  Sept.30, 2012 Dec. 31, 2011
Assets
Cash and other investments                      $  367,777     $  322,317
Other current assets                            46,282         44,194
Intangible assets, net and goodwill             725,268        720,926
Other long-term assets                          65,659         63,419
Total Assets                                    $  1,204,986   $  1,150,856
Liabilities and Equity
Current liabilities                             $  166,270     $  178,486
Long-term debt                                  286,875        318,750
Other long-term liabilities                     128,362        110,437
Equity excluding treasury stock                 1,393,607      1,315,664
Treasury stock                                  (770,128)      (772,481)
Total Liabilities and Equity                    $  1,204,986   $  1,150,856



Changes in Equity and Fixed-Income Fund and Separate Account Assets
(in millions)
                           Quarter Ended                   Nine Months Ended
                           Sept.30,  June30,  Sept.30,  Sept.30, Sept.30,
                           2012       2012      2011       2012      2011
Equity Funds
Beginning assets           $  22,671  $ 23,612  $ 22,678   $ 21,930  $ 22,626
Sales                      1,454      1,529     2,434      4,806     5,448
Redemptions                (1,527)    (1,797)   (1,966)    (5,511)   (5,690)
Net (redemptions) sales    (73)       (268)     468        (705)     (242)
Net exchanges              (14)       3         (40)       (23)      (44)
Acquisition-related        190        0         463        190       463
Market gains and           884        (676)     (3,429)    2,266     (2,663)
losses/reinvestments^1
Ending assets              $  23,658  $ 22,671  $ 20,140   $ 23,658  $ 20,140
Equity Separate Accounts^2
Beginning assets           $  10,550  $ 10,505  $ 8,702    $ 8,957   $ 8,176
Sales^3                    1,062      836       723        3,359     1,988
Redemptions^3              (503)      (697)     (631)      (1,686)   (1,981)
Net sales^3                559        139       92         1,673     7
Net exchanges              0          (9)       7          (9)       28
Market gains and           588        (85)      (970)      1,076     (380)
losses/reinvestments^1
Ending assets              $  11,697  $ 10,550  $ 7,831    $ 11,697  $ 7,831
Total Equity^2
Beginning assets           $  33,221  $ 34,117  $ 31,380   $ 30,887  $ 30,802
Sales^3                    2,516      2,365     3,157      8,165     7,436
Redemptions^3              (2,030)    (2,494)   (2,597)    (7,197)   (7,671)
Net sales (redemptions)^3  486        (129)     560        968       (235)
Net exchanges              (14)       (6)       (33)       (32)      (16)
Acquisition-related        190        0         463        190       463
Market gains and           1,472      (761)     (4,399)    3,342     (3,043)
losses/reinvestments^1
Ending assets              $  35,355  $ 33,221  $ 27,971   $ 35,355  $ 27,971
Fixed-Income Funds
Beginning assets           $  39,494  $ 38,526  $ 34,874   $ 37,241  $ 31,933
Sales                      5,120      5,636     4,049      15,578    13,294
Redemptions                (3,770)    (3,639)   (3,707)    (11,396)  (12,427)
Net sales                  1,350      1,997     342        4,182     867
Net exchanges              (92)       (1,510)   29         (1,661)   1,835
Acquisition-related        144        0         132        144       132
Market gains and           651        481       243        1,641     853
losses/reinvestments^1
Ending assets              $  41,547  $ 39,494  $ 35,620   $ 41,547  $ 35,620
Fixed-Income Separate
Accounts^2
Beginning assets           $  9,474   $ 7,695   $ 7,544    $ 7,573   $ 8,772
Sales^3                    309        624       198        1,153     1,283
Redemptions^3              (202)      (521)     (469)      (1,003)   (1,248)
Net sales (redemptions)^3  107        103       (271)      150       35
Net exchanges              1          1,592     0          1,593     (1,807)
Market gains and           260        84        (10)       526       263
losses/reinvestments^1
Ending assets              $  9,842   $ 9,474   $ 7,263    $ 9,842   $ 7,263
Total Fixed Income^2
Beginning assets           $  48,968  $ 46,221  $ 42,418   $ 44,814  $ 40,705
Sales^3                    5,429      6,260     4,247      16,731    14,577
Redemptions^3              (3,972)    (4,160)   (4,176)    (12,399)  (13,675)
Net sales^3                1,457      2,100     71         4,332     902
Net exchanges              (91)       82        29         (68)      28
Acquisition-related        144        0         132        144       132
Market gains and           911        565       233        2,167     1,116
losses/reinvestments^1
Ending assets              $  51,389  $ 48,968  $ 42,883   $ 51,389  $ 42,883
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, Redemptions or Net sales (redemptions) are
calculated as the remaining difference between beginning and ending assets
after the calculation of Market gains and losses/reinvestments.



Changes in Liquidation Portfolios
(in millions)
                        Quarter Ended                      Nine Months Ended
                        Sept.30,    June30,   Sept.30,  Sept.30, Sept.30,
                        2012         2012       2011       2012      2011
Liquidation
Portfolios^1
Beginning assets        $   8,124    $  8,583   $  9,964   $  8,856  $ 10,708
Sales^2                 0            0          0          0         2
Redemptions^2           (406)        (458)      (820)      (1,137)   (1,565)
Net redemptions^2       (406)        (458)      (820)      (1,137)   (1,563)
Market gains and        0            (1)        0          (1)       (1)
losses/reinvestments^3
Ending Assets           $   7,718    $  8,124   $  9,144   $  7,718  $ 9,144
1) Liquidation portfolios include portfolios of distressed fixed-income
securities. 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 these portfolios are lower
than those of traditional separate account mandates.
2) Sales, Redemptions or Net redemptions are calculated as the remaining
difference between beginning and ending assets after the calculation of Market
gains and losses/reinvestments.
3) 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 Sept.30,                      March31,  Dec.31,   Sept.30,
               2012          June30, 2012    2012       2011       2011
(in millions)
By Asset Class
Equity         $  35,355     $   33,221       $ 34,117   $ 30,887   $ 27,971
Fixed-income   51,389        48,968           46,221     44,814     42,883
Money market   269,622       265,548          274,704    285,140    271,653
Liquidation    7,718         8,124            8,583      8,856      9,144
portfolios^1
Total Managed  $  364,084    $   355,861      $ 363,625  $ 369,697  $ 351,651
Assets
By Product
Type
Funds:
Equity         $  23,658     $   22,671       $ 23,612   $ 21,930   $ 20,140
Fixed-income   41,547        39,494           38,526     37,241     35,620
Money market   244,826       238,610          245,232    255,857    245,293
Total Fund     $  310,031    $   300,775      $ 307,370  $ 315,028  $ 301,053
Assets
Separate
Accounts:
Equity         $  11,697     $   10,550       $ 10,505   $ 8,957    $ 7,831
Fixed-income   9,842         9,474            7,695      7,573      7,263
Money market   24,796        26,938           29,472     29,283     26,360
Total Separate $  46,335     $   46,962       $ 47,672   $ 45,813   $ 41,454
Accounts
Total
Liquidation    $  7,718      $   8,124        $ 8,583    $ 8,856    $ 9,144
Portfolios^1
Total Managed  $  364,084    $   355,861      $ 363,625  $ 369,697  $ 351,651
Assets
AVERAGE        Quarter Ended
MANAGED ASSETS
(in millions)  Sept.30,     June30, 2012    March31,  Dec.31,   Sept.30,
               2012                           2012       2011       2011
By Asset Class
Equity         $  34,158     $   32,993       $ 32,827   $ 29,965   $ 29,699
Fixed-income   50,195        47,747           45,792     43,980     43,001
Money market   268,573       271,507          282,801    275,295    266,756
Liquidation    7,948         8,353            8,703      9,030      9,309
portfolios^1
Total Avg.     $  360,874    $   360,600      $ 370,123  $ 358,270  $ 348,765
Assets
By Product
Type
Funds:
Equity         $  23,133     $   22,642       $ 23,075   $ 21,451   $ 21,491
Fixed-income   40,579        38,901           38,128     36,546     35,478
Money market   243,111       243,454          251,825    249,324    239,406
Total Avg.     $  306,823    $   304,997      $ 313,028  $ 307,321  $ 296,375
Fund Assets
Separate
Accounts:
Equity         $  11,025     $   10,351       $ 9,752    $ 8,514    $ 8,208
Fixed-income   9,616         8,846            7,664      7,434      7,523
Money market   25,462        28,053           30,976     25,971     27,350
Total Avg.
Separate       $  46,103     $   47,250       $ 48,392   $ 41,919   $ 43,081
Accounts
Total Avg.
Liquidation    $  7,948      $   8,353        $ 8,703    $ 9,030    $ 9,309
Portfolios^1
Total Avg.     $  360,874    $   360,600      $ 370,123  $ 358,270  $ 348,765
Managed Assets
1) Liquidation portfolios include portfolios of distressed fixed-income
securities. 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 these portfolios are lower
than those of traditional separate account mandates.



AVERAGE MANAGED ASSETS   Nine Months Ended
(in millions)            Sept.30, 2012             Sept.30, 2011
By Asset Class
Equity                   $       33,326             $       30,758
Fixed-income             47,912                     42,105
Money market             274,293                    270,236
Liquidation portfolios^1 8,334                      9,994
Total Avg. Assets        $       363,865            $       353,093
By Product Type
Funds:
Equity                   $       22,950             $       22,277
Fixed-income             39,203                     33,759
Money market             246,130                    239,807
Total Avg. Fund Assets   $       308,283            $       295,843
Separate Accounts:
Equity                   $       10,376             $       8,481
Fixed-income             8,709                      8,346
Money market             28,163                     30,429
Total Avg. Separate      $       47,248             $       47,256
Accounts
Total Avg. Liquidation   $       8,334              $       9,994
Portfolios^1
Total Avg. Managed       $       363,865            $       353,093
Assets
1) Liquidation portfolios include portfolios of distressed fixed-income
securities. 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 these portfolios are lower
than those of traditional separate account mandates.



SOURCE Federated Investors, Inc.

Website: http://FederatedInvestors.com
Contact: Media, Meghan McAndrew, +1-412-288-8103, J.T. Tuskan,
+1-412-288-7895, or Analysts, Ray Hanley, +1-412-288-1920
 
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