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
Fund II, 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 Q4 2012 2012 Q4 2012 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 of Dec. 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, March 31, Dec. 31,
Dec. 31, 2012 2012 June 30, 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, June 30, 2012 March 31, 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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