Federated Investors, Inc. Reports Third Quarter 2013 Earnings

        Federated Investors, Inc. Reports Third Quarter 2013 Earnings

-- Equity assets increase $5 billion or 14% to $40 billion from Q3 2012

-- Board declares $0.25 per share quarterly dividend

PR Newswire

PITTSBURGH, Oct. 24, 2013

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 Q32013 compared to $0.54 for the same
quarter last year and net income of $37.7 million for Q32013 compared to
$55.8 million for Q32012. 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 YTD2013 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 June30, 2013. Average
managed assets for Q32013 were $364.2 billion, up $3.1 billion or 1 percent
from $361.1 billion reported for Q32012 and down $8.7 billion or 2 percent
from $372.9 billion reported for Q22013.

"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 Q32013, 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 June30, 2013. Top-selling equity funds
during Q32013 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 June30, 2013. Bond assets in the liquidation
portfolio were $6.2 billion at Sept.30, 2013. Top-selling fixed-income funds
during Q32013 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
June30, 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
June30, 2013.

Financial Summary

Q32013 vs. Q32012

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 Q32013, 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.

Q32013 vs. Q22013

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     Quarter    Change     Nine Months Ended       Change
                                      Q3 2012    Ended      Q2 2013                            YTD 2012
               Sept.30,   Sept.30,  to         June30,   to         Sept.30,   Sept.30,   to YTD
               2013        2012       Q32013    2013       Q32013    2013        2012        2013
Investment     $ (70.7)    $ (41.2)   $ (29.5)   $ (59.4)   $ (11.3)   $ (185.1)   $ (137.2)   $ (47.9)
advisory fees
Other service  (34.4)      (28.3)     (6.1)      (32.5)     (1.9)      (99.3)      (83.0)      (16.3)
fees
Total Revenue  $ (105.1)   $ (69.5)   $ (35.6)   $ (91.9)   $ (13.2)   $ (284.4)   $ (220.2)   $ (64.2)
Less:
Reduction in   72.1        52.9       19.2       66.9       5.2        203.8       163.6       40.2
distribution
expense
Operating      $ (33.0)    $ (16.6)   $ (16.4)   $ (25.0)   $ (8.0)    $ (80.6)    $ (56.6)    $ (24.0)
income
Less:
Reduction in   2.7         0.3        2.4        1.3        1.4        4.8         0.9         3.9
noncontrolling
interest
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 ofSept.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 managers^1. 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)
                                                % Change               %
                          Quarter Ended         Q3       Quarter Ended Change
                                                2012 to                Q2
                          Sept.30,  Sept.30,  Q3                     2013
                          2013       2012       2013     June30, 2013 to Q3
                                                                       2013
Revenue
Investment advisory fees, $ 134,623  $ 160,306  (16)%    $  147,515    (9)%
net
Administrative service    55,052     55,879     (1)      55,253        0
fees, net
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               6,464      6,532      (1)      6,087         6
communications
Advertising and           3,975      3,559      12       3,936         1
promotional
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        788        143        451      892           (12)
Income, net
Income before income      58,546     90,176     (35)     66,920        (13)
taxes
Income tax provision      20,917     31,983     (35)     25,059        (17)
Net income including
noncontrolling interest   37,629     58,193     (35)     41,861        (10)
in subsidiaries
Less: Net (loss) income
attributable to the       (75)       2,420      (103)    1,453         (105)
noncontrolling interest
in subsidiaries
Net Income                $ 37,704   $ 55,773   (32)%    $  40,408     (7)%
Amounts Attributable to
Federated
Earnings Per Share^1
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    $ 0.25     $ 0.24              $  0.24
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 $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),   2,815          (1,805)        256
net
Income before income taxes              194,800        227,595        (14)
Income tax provision                    70,621         81,922         (14)
Net income including noncontrolling     124,179        145,673        (15)
interest in subsidiaries
Less: Net income attributable to the    3,073          7,165          (57)
noncontrolling interest in subsidiaries
Net Income                              $   121,106    $   138,508    (13)%
Amounts Attributable to Federated
Earnings Per Share^1
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      $   1,183,103  $  1,090,061
Interests and Equity

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,
                            2013      2013      2012       2013      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            1,538     207       884        3,673     2,266
losses/reinvestments^1
Ending assets               $ 25,930  $ 25,030  $ 23,658   $ 25,930  $ 23,658
Equity Separate Accounts^2
Beginning assets            $ 13,675  $ 13,361  $ 10,550   $ 11,858  $ 8,957
Sales^3                     971       1,031     1,062      3,108     3,359
Redemptions^3               (798)     (937)     (503)      (2,303)   (1,686)
Net sales^3                 173       94        559        805       1,673
Net exchanges               0         0         0          0         (9)
Market gains and            505       220       588        1,690     1,076
losses/reinvestments^1
Ending assets               $ 14,353  $ 13,675  $ 11,697   $ 14,353  $ 11,697
Total Equity^2
Beginning assets            $ 38,705  $ 37,852  $ 33,221   $ 35,010  $ 30,887
Sales^3                     2,827     2,949     2,516      8,634     8,165
Redemptions^3               (3,369)   (2,566)   (2,030)    (8,891)   (7,197)
Net (redemptions) sales^3   (542)     383       486        (257)     968
Net exchanges               77        43        (14)       167       (32)
Acquisition-related         0         0         190        0         190
Market gains and            2,043     427       1,472      5,363     3,342
losses/reinvestments^1
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            261       (699)     651        (401)     1,641
losses/reinvestments^1
Ending assets               $ 39,944  $ 40,188  $ 41,547   $ 39,944  $ 41,547
Fixed-Income Separate
Accounts^2
Beginning assets            $ 9,817   $ 10,158  $ 9,474    $ 10,233  $ 7,573
Sales^3                     498       562       309        1,591     1,153
Redemptions^3               (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            125       (185)     260        (21)      526
losses/reinvestments^1
Ending assets               $ 10,018  $ 9,817   $ 9,842    $ 10,018  $ 9,842
Total Fixed Income^2
Beginning assets            $ 50,005  $ 52,770  $ 48,968   $ 52,711  $ 44,814
Sales^3                     4,880     5,794     5,429      16,353    16,731
Redemptions^3               (5,201)   (7,602)   (3,972)    (18,457)  (12,399)
Net (redemptions) sales^3   (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            386       (884)     911        (422)     2,167
losses/reinvestments^1
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, June30, Sept.30,  Sept.30, Sept.30,
                             2013      2013     2012       2013      2012
Liquidation Portfolio^1
Beginning assets             $  6,561  $ 7,019  $  8,124   $  7,346  $  8,856
Net redemptions              (384)     (458)    (406)      (1,169)   (1,137)
Market gains and             0         0        0          0         (1)
losses/reinvestments^2
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       Sept.30,                March31,  Dec.31,   Sept.30,
                     2013       June30, 2013 2013       2012       2012
(in millions)
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          6,177      6,561         7,019      7,346      7,718
portfolio^1
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       $ 56,715   $  59,150     $ 60,453   $ 51,106   $ 46,335
Accounts
Total Liquidation    $ 6,177    $  6,561      $ 7,019    $ 7,346    $ 7,718
Portfolio^1
Total Managed Assets $ 366,715  $  363,803    $ 377,309  $ 379,771  $ 364,084
AVERAGE MANAGED      Quarter Ended
ASSETS
(in millions)        Sept.30,  June30, 2013 March31,  Dec.31,   Sept.30,
                     2013                     2013       2012       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          6,434      6,834         7,215      7,559      7,948
portfolio^1
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      $ 300,276  $  305,142    $ 317,270  $ 313,899  $ 306,823
Assets
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  $ 57,498   $  60,894     $ 56,735   $ 47,271   $ 46,374
Accounts
Total Avg.
Liquidation          $ 6,434    $  6,834      $ 7,215    $ 7,559    $ 7,948
Portfolio^1
Total Avg. Managed   $ 364,208  $  372,870    $ 381,220  $ 368,729  $ 361,145
Assets

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 portfolio^1            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 Portfolio^1 $   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.

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