Federated Investors, Inc. Reports Fourth Quarter and Year-End 2012 Earnings

 Federated Investors, Inc. Reports Fourth Quarter and Year-End 2012 Earnings

- Equity and bond assets increase $11 billion during 2012 to a record $95
billion

- 2012 equity and bond net sales reach $6 billion

- Q4 2012 net income increases by 34 percent compared to Q4 2011

- Board declares $0.24 per share quarterly dividend

PR Newswire

PITTSBURGH, Jan. 24, 2013

PITTSBURGH, Jan. 24, 2013 /PRNewswire/ --Federated Investors, Inc. (NYSE:
FII), one of the nation's largest investment managers, today reported earnings
per diluted share (EPS) of $0.44 for the quarter ended Dec.31, 2012 as
compared to $0.36 for the same quarter last year. Q4 2012 EPS reflects a
$0.04 reduction due to the application of the two-class method of computing
EPS in connection with the special dividend paid in Q4 2012. Net income was
$49.6 million for Q4 2012 compared to $36.9 million for Q4 2011. Federated
reported 2012 EPS of $1.79 compared to $1.45 for 2011 and net income of
$188.1 million for 2012 compared to $150.9 million for 2011.

Federated's total managed assets were $379.8 billion at Dec.31, 2012, up
$10.1 billion or 3 percent from $369.7 billion at Dec.31, 2011 and up $15.7
billion or 4 percent from $364.1 billion reported at Sept.30, 2012. Average
managed assets for Q4 2012 were $368.7 billion, up $10.4 billion or 3 percent
from $358.3 billion reported for Q4 2011 and up $7.6 billion or 2 percent from
$361.1 billion reported for Q3 2012. Net sales of equity and fixed-income
funds and separate accounts were $685 million for Q4 2012.

"In 2012, Federated's range of income-oriented investment strategies proved to
be highly attractive options for investors," said J. Christopher Donahue,
president and chief executive officer. "On the equity side, assets in our
strategic-value dividend strategies increased more than 35 percent during the
year to $14 billion, while on the fixed-income side, Federated had record
sales of nearly $22 billion in our funds and separate accounts."

Federated's board of directors declared a quarterly dividend of $0.24 per
share. The dividend is payable on Feb. 15, 2013 to shareholders of record as
of Feb. 8, 2013. During Q4 2012, Federated paid a regular quarterly dividend
of $0.24 per share and a special dividend of $1.51 per share. In 2012, the
company paid total dividends in the amount of $2.47 per share. During Q4
2012, Federated purchased 50,000 shares of Federated class B common stock for
$1.0 million. In 2012, the company purchased 321,687 shares of Federated
class B common stock for $6.3 million.

Federated's equity assets were $35.0 billion at Dec.31, 2012, up $4.1 billion
or 13 percent from $30.9 billion at Dec.31, 2011 and down $0.4 billion or 1
percent from $35.4 billion at Sept.30, 2012. Top-selling equity funds during
Q4 2012 on a net basis were Federated Capital Income Fund, Federated
International Strategic Value Dividend Fund, Federated Managed Volatility
FundII, Federated Muni and Stock Advantage Fund and Federated Clover Small
Value Fund.

Federated's fixed-income assets were a record $52.7 billion at Dec.31, 2012,
up $7.9 billion or 18 percent from $44.8 billion at Dec.31, 2011 and up $1.3
billion or 3 percent from $51.4 billion at Sept.30, 2012. Fixed-income
assets in liquidation portfolios were $7.3 billion at Dec.31, 2012.
Fixed-income sales during Q4 2012 were driven by strong net flows into
Federated's short-duration products, Federated Total Return Bond Fund and
Federated Institutional High Yield Bond Fund.

Money market assets in both funds and separate accounts were $284.7 billion at
Dec.31, 2012, down $0.4 billion from $285.1 billion at Dec.31, 2011 and up
$15.1 billion or 6 percent from $269.6 billion at Sept.30, 2012. Money
market mutual fund assets were $255.7 billion at Dec. 31, 2012, down $0.2
billion from $255.9 billion at Dec.31, 2011 and up $10.9 billion or 4 percent
from $244.8 billion at Sept.30, 2012. The Q4 2012 increase in money market
assets reflects a variety of factors including the ongoing confidence of
clients in money market funds as an investment vehicle, favorable market
conditions and seasonality.

Financial Summary

Q4 2012 vs. Q4 2011

Revenue increased by $28.4 million or 13 percent due primarily to a decrease
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 Q4 2012, Federated derived 52 percent of its revenue from equity and
fixed-income assets (30 percent from equity assets and 22 percent from
fixed-income assets), 47 percent from money market assets and 1 percent from
other products and services.

Operating expenses increased $7.1 million or 5 percent primarily as a result
of an increase in distribution expense related to reduced fee waivers and an
increase in compensation and related expense. These increases were partially
offset by a reduction in professional service fees due to the recognition of
insurance proceeds in Q4 2012.

Nonoperating expenses, net, increased $0.9 million due primarily to a $3.0
million impairment charge in Q4 2012 related to a change in the value of a
minority interest investment, partially offset by an increase in investment
income.

Q4 2012 vs. Q3 2012

Revenue increased by $6.4 million or 3 percent primarily due to an increase in
total average assets.

Operating expenses increased by $13.2 million or 9 percent primarily related
to an increase in professional service fees due to a decrease in the
recognition of insurance proceeds.

Nonoperating expenses, net, increased $2.4 million due primarily to the
aforementioned impairment charge.

YTD 2012 vs. YTD 2011

Revenue increased by $50.6 million, or 6 percent primarily due to a decrease
in the aforementioned voluntary fee waivers mainly as a result of improved
yields available on securities held by money market funds and an increase in
average fixed-income assets.

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 decreased by $4.5 million or 1 percent. The decrease
primarily reflects lower professional service fees due to the recognition of
insurance proceeds in 2012 and nonrecurring legal expenses incurred in Q1
2011. This decrease was partially offset by increases in distribution expenses
related to reduced fee waivers and increased average fixed-income assets and
an increase in compensation and related expenses.

Nonoperating expenses, net, decreased by $7.0 million or 63 percent. The
decrease reflects an increase in investment income primarily as a result of
realized and unrealized gains on investments and a reduction in debt expense.
These decreases were partially offset by the aforementioned impairment charge.

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, 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,
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   Quarter   Change    Year Ended            Change
                                   Q4 2011  Ended     Q3 2012                         2011 to
               Dec.31,  Dec.31,  to       Sept.30, to        Dec.31,   Dec.31,   2012
               2012      2011      Q42012  2012      Q42012   2012       2011
Investment     $ (40.0)  $ (58.8)  $ 18.8   $ (41.2)  $ 1.2     $ (177.2)  $ (201.6)  $ 24.4
advisory fees
Other service  (30.7)    (30.2)    (0.5)    (28.3)    (2.4)     (113.8)    (119.1)    5.3
fees
Total Revenue  $ (70.7)  $ (89.0)  $ 18.3   $ (69.5)  $ (1.2)   $ (291.0)  $ (320.7)  $ 29.7
Less:
Reduction in   54.9      61.9      (7.0)    52.9      2.0       218.5      232.3      (13.8)
distribution
expense
Operating      $ (15.8)  $ (27.1)  $ 11.3   $ (16.6)  $ 0.8     $ (72.5)   $ (88.4)   $ 15.9
income
Less:
Reduction in   0.3       1.0       (0.7)    0.3       0.0       1.3        6.5        (5.2)
noncontrolling
interest
Pre-tax impact $ (15.5)  $ (26.1)  $ 10.6   $ (16.3)  $ 0.8     $ (71.2)   $ (81.9)   $ 10.7



Federated will host an earnings conference call at 9 a.m. Eastern on Jan. 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 FederatedInvestors.com. A replay
will be available after 12:30 p.m. and through Feb. 1, 2013 by calling
877-660-6853 (domestic) or 201-612-7415 (international) and entering access
code 407161.

Federated Investors, Inc. is one of the largest investment managers in the
United States, managing $379.8 billion in assets as ofDec. 31, 2012. With
137 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 2 percent of money market fund managers in the
industry, the top 7 percent of equity fund managers and the top 8 percent of
fixed-income fund managers^1. For more information, visit
FederatedInvestors.com.

1 Strategic Insight, Nov. 30, 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
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 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 Quarter Ended % Change
                                               Q4 2011                Q3 2012
                   Dec.31, 2012 Dec.31, 2011 to Q4    Sept.30,     to Q4
                                               2012     2012          2012
Revenue
Investment         $  166,813    $  138,225    21     % $  160,306    4      %
advisory fees, net
Administrative     57,372        56,830        1        55,879        3
service fees, net
Other service      19,818        20,249        (2)      21,421        (7)
fees, net
Other, net         821           1,102         (25)     862           (5)
Total Revenue      244,824       216,406       13       238,468       3
Operating Expenses
Distribution       65,278        58,740        11       64,146        2
Compensation and   63,211        60,620        4        65,131        (3)
related
Professional       6,549         9,567         (32)     (7,864)       183
service fees
Office and         6,349         6,254         2        6,108         4
occupancy
Systems and        6,100         5,839         4        6,532         (7)
communications
Travel and related 3,837         3,673         4        2,913         32
Advertising and    3,611         3,524         2        3,559         1
promotional
Intangible asset   951           1,243         (23)     799           19
related
Other              5,746         5,085         13       7,111         (19)
Total Operating    161,632       154,545       5        148,435       9
Expenses
Operating Income   83,192        61,861        34       90,033        (8)
Nonoperating
Income (Expenses)
Investment income, 4,343         2,538         71       3,706         17
net
Debt expense       (3,506)       (3,860)       (9)      (3,534)       (1)
Other, net         (3,112)       (103)         2,921    (29)          10,631
Total Nonoperating
(Expenses) Income, (2,275)       (1,425)       60       143           1,691
net
Income before      80,917        60,436        34       90,176        (10)
income taxes
Income tax         28,961        21,811        33       31,983        (9)
provision
Net income
including
noncontrolling     51,956        38,625        35       58,193        (11)
interest in
subsidiaries
Less: Net income
attributable to
the noncontrolling 2,375         1,682         41       2,420         (2)
interest in
subsidiaries
Net Income         $  49,581     $  36,943     34     % $  55,773     (11)   %
Amounts
Attributable to
Federated
Earnings Per
Share^1
Basic and diluted  $  0.44       $  0.36       22     % $  0.54       (19)   %
Weighted-average
shares outstanding
Basic and diluted  100,374       100,264                100,417
Dividends declared $  1.75       $  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 $5.7 million, $1.2 million and $2.0 million
available to unvested restricted shares for the quarterly periods ended Dec.
31, 2012, Dec. 31, 2011 and Sept. 30, 2012, respectively, was excluded from
the computation of earnings per share.





Unaudited Condensed
Consolidated Statements of
Income
(in thousands, except per
share data)
                           Year Ended                              % Change
                           Dec.31, 2012       Dec.31, 2011
Revenue
Investment advisory fees,  $    630,834        $    586,340        8        %
net
Administrative service     225,529             220,356             2
fees, net
Other service fees, net    85,902              85,385              1
Other, net                 3,441               3,033               13
Total Revenue              945,706             895,114             6
Operating Expenses
Compensation and related   257,622             245,439             5
Distribution               253,445             235,670             8
Systems and communications 25,716              22,971              12
Office and occupancy       24,828              24,689              1
Professional service fees  18,925              53,737              (65)
Advertising and            13,413              13,413              0
promotional
Travel and related         12,838              12,174              5
Intangible asset related   2,593               7,915               (67)
Other                      23,733              21,651              10
Total Operating Expenses   633,113             637,659             (1)
Operating Income           312,593             257,455             21
Nonoperating Income
(Expenses)
Investment income, net     13,667              6,259               118
Debt expense               (14,441)            (17,047)            (15)
Other, net                 (3,308)             (296)               1,018
Total Nonoperating         (4,082)             (11,084)            (63)
Expenses, net
Income before income taxes 308,511             246,371             25
Income tax provision       110,883             91,288              21
Net income including
noncontrolling interest in 197,628             155,083             27
subsidiaries
Less: Net income
attributable to the        9,540               4,177               128
noncontrolling interest in
subsidiaries
Net Income                 $    188,088        $    150,906        25       %
Amounts Attributable to
Federated
Earnings Per Share^1
Basic and diluted          $    1.79           $    1.45           23       %
Weighted-average shares
outstanding
Basic                      100,313             100,609
Diluted                    100,313             100,632
Dividends declared per     $    2.47           $    0.96
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 $8.4 million and $4.9 million available to unvested
restricted shares for the years ended Dec. 31, 2012 and Dec. 31, 2011,
respectively, was excluded from the computation of earnings per share.





Unaudited Condensed Consolidated Balance Sheets
(in thousands)                                  Dec.31, 2012 Dec. 31, 2011
Assets
Cash and other investments                      $  258,628    $  322,317
Other current assets                            41,434        44,194
Intangible assets, net and goodwill             727,857       720,926
Other long-term assets                          62,142        63,419
Total Assets                                    $  1,090,061  $  1,150,856
Liabilities and Equity
Current liabilities                             $  181,134    $  178,486
Long-term debt                                  276,250       318,750
Other long-term liabilities                     128,733       110,437
Equity excluding treasury stock                 1,263,966     1,315,664
Treasury stock                                  (760,022)     (772,481)
Total Liabilities and Equity                    $  1,090,061  $  1,150,856





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

(in millions)
                           Quarter Ended                   Year Ended
                           Dec.31,   Sept.30, Dec.31,   Dec.31,  Dec.31,
                           2012       2012      2011       2012      2011
Equity Funds
Beginning assets           $  23,658  $ 22,671  $ 20,140   $ 21,930  $ 22,626
Sales                      1,415      1,454     2,185      6,221     7,633
Redemptions                (1,866)    (1,527)   (1,771)    (7,377)   (7,461)
Net (redemptions) sales    (451)      (73)      414        (1,156)   172
Net exchanges              (47)       (14)      (32)       (70)      (76)
Acquisition-related        0          190       0          190       463
Market gains and           (8)        884       1,408      2,258     (1,255)
losses/reinvestments^1
Ending assets              $  23,152  $ 23,658  $ 21,930   $ 23,152  $ 21,930
Equity Separate Accounts^2
Beginning assets           $  11,697  $ 10,550  $ 7,831    $ 8,957   $ 8,176
Sales^3                    893        1,062     873        4,252     2,861
Redemptions^3              (605)      (503)     (549)      (2,291)   (2,530)
Net sales^3                288        559       324        1,961     331
Net exchanges              1          0         26         (8)       54
Market gains and           (128)      588       776        948       396
losses/reinvestments^1
Ending assets              $  11,858  $ 11,697  $ 8,957    $ 11,858  $ 8,957
Total Equity^2
Beginning assets           $  35,355  $ 33,221  $ 27,971   $ 30,887  $ 30,802
Sales^3                    2,308      2,516     3,058      10,473    10,494
Redemptions^3              (2,471)    (2,030)   (2,320)    (9,668)   (9,991)
Net (redemptions) sales^3  (163)      486       738        805       503
Net exchanges              (46)       (14)      (6)        (78)      (22)
Acquisition-related        0          190       0          190       463
Market gains and           (136)      1,472     2,184      3,206     (859)
losses/reinvestments^1
Ending assets              $  35,010  $ 35,355  $ 30,887   $ 35,010  $ 30,887
Fixed-Income Funds
Beginning assets           $  41,547  $ 39,494  $ 35,620   $ 37,241  $ 31,933
Sales                      4,848      5,120     4,696      20,426    17,990
Redemptions                (4,268)    (3,770)   (3,417)    (15,664)  (15,844)
Net sales                  580        1,350     1,279      4,762     2,146
Net exchanges              141        (92)      38         (1,520)   1,873
Acquisition-related        0          144       0          144       132
Market gains and           210        651       304        1,851     1,157
losses/reinvestments^1
Ending assets              $  42,478  $ 41,547  $ 37,241   $ 42,478  $ 37,241
Fixed-Income Separate
Accounts^2
Beginning assets           $  9,842   $ 9,474   $ 7,263    $ 7,573   $ 8,772
Sales^3                    393        309       415        1,546     1,698
Redemptions^3              (125)      (202)     (195)      (1,128)   (1,443)
Net sales^3                268        107       220        418       255
Net exchanges              0          1         1          1,593     (1,806)
Market gains and           123        260       89         649       352
losses/reinvestments^1
Ending assets              $  10,233  $ 9,842   $ 7,573    $ 10,233  $ 7,573
Total Fixed Income^2
Beginning assets           $  51,389  $ 48,968  $ 42,883   $ 44,814  $ 40,705
Sales^3                    5,241      5,429     5,111      21,972    19,688
Redemptions^3              (4,393)    (3,972)   (3,612)    (16,792)  (17,287)
Net sales^3                848        1,457     1,499      5,180     2,401
Net exchanges              141        (91)      39         73        67
Acquisition-related        0          144       0          144       132
Market gains and           333        911       393        2,500     1,509
losses/reinvestments^1
Ending assets              $  52,711  $ 51,389  $ 44,814   $ 52,711  $ 44,814
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                       Year Ended
                        Dec.31,    Sept.30,    Dec.31,   Dec.31, Dec.31,
                        2012        2012         2011       2012     2011
Liquidation
Portfolios^1
Beginning assets        $  7,718    $   8,124    $  9,144   $ 8,856  $ 10,708
Sales^2                 0           0            0          0        2
Redemptions^2           (372)       (406)        (289)      (1,509)  (1,854)
Net redemptions^2       (372)       (406)        (289)      (1,509)  (1,852)
Market gains and        0           0            1          (1)      0
losses/reinvestments^3
Ending Assets           $  7,346    $   7,718    $  8,856   $ 7,346  $ 8,856
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,
               Dec.31, 2012    2012       June30, 2012 2012       2011
(in millions)
By Asset Class
Equity         $   35,010       $ 35,355   $  33,221     $ 34,117   $ 30,887
Fixed-income   52,711           51,389     48,968        46,221     44,814
Money market   284,704          269,622    265,548       274,704    285,140
Liquidation    7,346            7,718      8,124         8,583      8,856
portfolios^1
Total Managed  $   379,771      $ 364,084  $  355,861    $ 363,625  $ 369,697
Assets
By Product
Type
Funds:
Equity         $   23,152       $ 23,658   $  22,671     $ 23,612   $ 21,930
Fixed-income   42,478           41,547     39,494        38,526     37,241
Money market   255,689          244,826    238,610       245,232    255,857
Total Fund     $   321,319      $ 310,031  $  300,775    $ 307,370  $ 315,028
Assets
Separate
Accounts:
Equity         $   11,858       $ 11,697   $  10,550     $ 10,505   $ 8,957
Fixed-income   10,233           9,842      9,474         7,695      7,573
Money market   29,015           24,796     26,938        29,472     29,283
Total Separate $   51,106       $ 46,335   $  46,962     $ 47,672   $ 45,813
Accounts
Total
Liquidation    $   7,346        $ 7,718    $  8,124      $ 8,583    $ 8,856
Portfolios^1
Total Managed  $   379,771      $ 364,084  $  355,861    $ 363,625  $ 369,697
Assets
AVERAGE        Quarter Ended
MANAGED ASSETS
(in millions)  Dec.31, 2012    Sept.30,  June30, 2012 March31,  Dec.31,
                                2012                     2012       2011
By Asset Class
Equity         $   35,016       $ 34,429   $  32,993     $ 32,827   $ 29,965
Fixed-income   52,211           50,195     47,747        45,792     43,980
Money market   273,943          268,573    271,507       282,801    275,295
Liquidation    7,559            7,948      8,353         8,703      9,030
portfolios^1
Total Avg.     $   368,729      $ 361,145  $  360,600    $ 370,123  $ 358,270
Assets
By Product
Type
Funds:
Equity         $   23,209       $ 23,133   $  22,642     $ 23,075   $ 21,451
Fixed-income   42,156           40,579     38,901        38,128     36,546
Money market   248,534          243,111    243,454       251,825    249,324
Total Avg.     $   313,899      $ 306,823  $  304,997    $ 313,028  $ 307,321
Fund Assets
Separate
Accounts:
Equity         $   11,807       $ 11,296   $  10,351     $ 9,752    $ 8,514
Fixed-income   10,055           9,616      8,846         7,664      7,434
Money market   25,409           25,462     28,053        30,976     25,971
Total Avg.
Separate       $   47,271       $ 46,374   $  47,250     $ 48,392   $ 41,919
Accounts
Total Avg.
Liquidation    $   7,559        $ 7,948    $  8,353      $ 8,703    $ 9,030
Portfolios^1
Total Avg.     $   368,729      $ 361,145  $  360,600    $ 370,123  $ 358,270
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   Year Ended
(in millions)            Dec.31, 2012               Dec.31, 2011
By Asset Class
Equity                   $       33,816              $      30,560
Fixed-income             48,986                      42,573
Money market             274,206                     271,501
Liquidation portfolios^1 8,141                       9,753
Total Avg. Assets        $       365,149             $      354,387
By Product Type
Funds:
Equity                   $       23,015              $      22,071
Fixed-income             39,941                      34,455
Money market             246,731                     242,187
Total Avg. Fund Assets   $       309,687             $      298,713
Separate Accounts:
Equity                   $       10,801              $      8,489
Fixed-income             9,045                       8,118
Money market             27,475                      29,314
Total Avg. Separate      $       47,321              $      45,921
Accounts
Total Avg. Liquidation   $       8,141               $      9,753
Portfolios^1
Total Avg. Managed       $       365,149             $      354,387
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, or J.T. Tuskan,
+1-412-288-7895; ANALYSTS: Ray Hanley, +1-412-288-1920
 
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