SYS-CON MEDIA Authors: Bob Gourley, Greg Schulz, Don Nelson, Gilad Parann-Nissany, Noel Wurst

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Federated Investors, Inc. Reports Fourth Quarter and Full-Year 2013 Earnings

- Equity and bond assets surpass $100 billion at year end

PITTSBURGH, Jan. 23, 2014 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.39 for Q4 2013 compared to $0.44 for the same quarter last year on net income of $41.1 million for Q4 2013 compared to $49.6 million for Q4 2012.   Federated reported 2013 EPS of $1.55 compared to $1.79 for 2012 on 2013 net income of $162.2 million compared to $188.1 million for 2012. Federated's financial results for 2012 included the recognition of insurance proceeds that reduced pre-tax operating expenses by $20.2 million and increased EPS by $0.12 per share, after tax.

Federated's total managed assets were $376.1 billion at Dec. 31, 2013, down $3.7 billion or 1 percent from $379.8 billion at Dec. 31, 2012 and up $9.4 billion or 3 percent from $366.7 billion reported at Sept. 30, 2013.  Average managed assets for Q4 2013 were $366.2 billion, down $2.5 billion or 1 percent from $368.7 billion reported for Q4 2012 and up $2.0 billion or 1 percent from $364.2 billion reported for Q3 2013. 

"With nearly three-quarters of  Federated's equity funds delivering one-year performance that beat a majority of their peers in 2013, we are well positioned to meet increased investor interest in our broad range of equity strategies," said J. Christopher Donahue, president and chief executive officer. "Such strong performance in a range of styles expanded client interest beyond our dividend-oriented strategies to additional options such as large-cap growth, international, small-cap value and balanced strategies, as well."

Federated's board of directors declared a quarterly dividend of $0.25 per share.  The dividend is payable on Feb. 14, 2014 to shareholders of record as of Feb. 7, 2014.  In 2013, the company paid total dividends of $0.98 per share.  During Q4 2013, Federated purchased 295,638 shares of Federated class B common stock for $7.0 million, bringing the total for 2013 to 645,343 shares purchased for $14.2 million.  

Federated's equity assets were $44.1 billion at Dec. 31, 2013, up $9.1 billion or 26 percent from $35.0 billion at Dec. 31, 2012 and up $3.8 billion or 9 percent from $40.3 billion at Sept. 30, 2013.  Top-selling equity funds during Q4 2013 on a net basis were Federated Capital Income Fund, Federated Kaufmann Large Cap Fund, Federated International Leaders Fund, Federated International Strategic Value Dividend Fund and Federated Clover Small Value Fund. 

Federated's fixed-income assets were $50.1 billion at Dec. 31, 2013, down $2.6 billion or 5 percent from $52.7 billion at Dec. 31, 2012 and up slightly from $50.0 billion at Sept. 30, 2013.  Bond assets in the liquidation portfolio were $5.9 billion at Dec. 31, 2013.  Top-selling fixed-income funds during Q4 2013 on a net basis were Federated Institutional High Yield Bond Fund, Federated Sterling Cash Plus Fund, Federated Short-Term Income Fund, Federated Floating Rate Strategic Income Fund and Federated High Yield Trust. 

Money market assets in both funds and separate accounts were $276.0 billion at Dec. 31, 2013, down $8.7 billion or 3 percent from $284.7 billion at Dec. 31, 2012 and up $5.7 billion or 2 percent from $270.3 billion at Sept. 30, 2013.  Money market mutual fund assets were $240.0 billion at Dec. 31, 2013, down $15.7 billion or 6 percent from $255.7 billion at Dec. 31, 2012 and up $2.1 billion or 1 percent from $237.9 billion at Sept. 30, 2013. 

Financial Summary

Q4 2013 vs. Q4 2012

Revenue decreased by $30.1 million or 12 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 and a decrease in revenue due to lower average money market and fixed-income assets.  The decrease was partially offset by an increase in revenue from higher average equity assets. See additional information about voluntary fee waivers in the table at the end of this financial summary. 

During Q4 2013, Federated derived 63 percent of its revenue from equity and fixed-income assets (40 percent from equity assets and 23 percent from fixed-income assets), 36 percent from money market assets and 1 percent from other products and services.

Operating expenses decreased $6.7 million or 4 percent primarily due to a decrease in distribution expenses associated with  increased fee waivers related to the low-yield environment for money market funds, partially offset by an increase in compensation and related expense.  

Nonoperating income, net, increased $6.7 million or 296 percent.  The change primarily reflects an increase in investment income from gains realized on investments and a reduction in the level of pre-tax non-cash impairment charges related to changes in the fair value of a minority interest investment.

Q4 2013 vs. Q3 2013

Revenue increased by $2.9 million or 1 percent primarily due to higher average equity assets. 

Operating expenses increased by $0.9 million or 1 percent primarily due to an increase in compensation and related expense.

Nonoperating income, net, increased $3.7 million or 466 percent due primarily to a reduction in the level of pre-tax non-cash impairment charges related to changes in the fair value of a minority interest investment.

YTD 2013 vs. YTD 2012

Revenue decreased by $67.3 million or 7 percent primarily due to an increase in voluntary fee waivers and was partially offset by an increase in revenue due to higher average equity assets.

During 2013, Federated derived 60 percent of its revenue from equity and fixed-income assets (37 percent from equity assets and 23 percent from fixed-income assets), 39 percent from money market assets and 1 percent from other products and services.

Operating expenses decreased by $6.5 million or 1 percent primarily due to a decrease in distribution expenses related to the low-yield environment and were partially offset by an increase in professional service fees due to the aforementioned insurance proceeds recorded as a reduction to professional service fees in 2012 and an increase in compensation and related expense.

Nonoperating income, net,  increased $11.4 million or 278 percent primarily reflecting an increase in investment income from gains realized on investments and a reduction in debt expense.

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
Q4 2012 to Q4 2013


Quarter Ended


Change
Q3 2013 to Q4 2013


Year Ended


Change
YTD 2012
to YTD
2013


Dec. 31, 2013


Dec. 31, 2012



Sept. 30, 2013



Dec. 31, 2013


Dec. 31, 2012


Investment advisory fees

$

(70.9)



$

(40.0)



$

(30.9)



$

(70.7)



$

(0.2)



$

(255.9)



$

(177.2)



$

(78.7)


Other service fees

(33.7)



(30.7)



(3.0)



(34.4)



0.7



(133.1)



(113.8)



(19.3)


   Total revenue

$

(104.6)



$

(70.7)



$

(33.9)



$

(105.1)



$

0.5



$

(389.0)



$

(291.0)



$

(98.0)


Less: Reduction in distribution expense

73.3



54.9



18.4



72.1



1.2



277.1



218.5



58.6


   Operating income

$

(31.3)



$

(15.8)



$

(15.5)



$

(33.0)



$

1.7



$

(111.9)



$

(72.5)



$

(39.4)


Less: Reduction in noncontrolling interest

2.0



0.3



1.7



2.7



(0.7)



6.8



1.3



5.5


Pre-tax impact

$

(29.3)



$

(15.5)



$

(13.8)



$

(30.3)



$

1.0



$

(105.1)



$

(71.2)



$

(33.9)


Federated will host an earnings conference call at 9 a.m. Eastern on Jan. 24, 2014.  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 Jan. 31, 2014 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 13574383.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $376.1 billion in assets as of Dec. 31, 2013.  With 135 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 6,000 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.  Federated ranks in the top 3 percent of money market fund managers in the industry, the top 7 percent of equity fund managers and the top 9 percent of fixed-income fund managers1.  For more information, visit FederatedInvestors.com

1 Strategic Insight, Nov. 30, 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 and performance, investor interest, asset flows and mix, fee arrangements with customers and market conditions constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements.  Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, which could vary significantly depending on a variety of factors identified above, and include the ability of the company to sustain product demand and asset flows and mix, which could vary significantly depending on market conditions, investment performance and investor behavior.  Other risks and uncertainties also include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission.  As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.

 

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)




Quarter Ended

% Change
Q4 2012 to
Q4 2013

Quarter Ended

% Change
Q3 2013
to Q4 2013


Dec. 31, 2013

Dec. 31, 2012

Sept. 30, 2013

Revenue






Investment advisory fees, net

$

138,051


$

166,813


(17)%


$

134,623


3%


Administrative service fees, net

55,354


57,372


(4)


55,052


1


Other service fees, net

20,399


19,818


3


20,022


2


Other, net

918


821


12


2,169


(58)


Total Revenue

214,722


244,824


(12)


211,866


1









Operating Expenses







Compensation and related

68,725


63,211


9


65,620


5


Distribution

49,802


65,278


(24)


51,051


(2)


Professional service fees

9,241


6,549


41


9,704


(5)


Office and occupancy

6,838


6,349


8


6,488


5


Systems and communications

6,628


6,100


9


6,464


3


Travel and related

4,108


3,837


7


3,344


23


Advertising and promotional

3,760


3,611


4


3,975


(5)


Intangible asset related

(453)


951


(148)


634


(171)


Other

6,315


5,746


10


6,828


(8)


Total Operating Expenses

154,964


161,632


(4)


154,108


1


Operating Income

59,758


83,192


(28)


57,758


3









Nonoperating Income (Expenses)







Investment income, net

8,089


4,343


86


6,999


16


Debt expense

(2,996)


(3,506)


(15)


(3,078)


(3)


Other, net

(636)


(3,112)


(80)


(3,133)


(80)


Total Nonoperating Income (Expenses), net

4,457


(2,275)


296


788


466


Income before income taxes

64,215


80,917


(21)


58,546


10


Income tax provision

22,039


28,961


(24)


20,917


5


Net income including noncontrolling interest in subsidiaries

42,176


51,956


(19)


37,629


12


Less: Net income (loss) attributable to the noncontrolling interest in subsidiaries

1,105


2,375


(53)


(75)


1,573


Net Income

$

41,071


$

49,581


(17)%


$

37,704


9%









Amounts Attributable to Federated







Earnings Per Share1







Basic and diluted

$

0.39


$

0.44


(11)%


$

0.36


8%


Weighted-average shares outstanding







Basic

100,760


100,374



100,677




Diluted

100,762


100,374



100,678




Dividends declared per share

$

0.25


$

1.75



$

0.25




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, $5.7 million and $1.4 million available to unvested restricted shares for the quarterly periods ended Dec. 31, 2013, Dec. 31, 2012 and Sept. 30, 2013, 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, 2013

Dec. 31, 2012

Revenue




Investment advisory fees, net

$

570,952


$

630,834


(9)%


Administrative service fees, net

222,487


225,529


(1)


Other service fees, net

79,608


85,902


(7)


Other, net

5,318


3,441


55


Total Revenue

878,365


945,706


(7)






Operating Expenses




Compensation and related

269,138


257,622


4


Distribution

212,901


253,445


(16)


Professional service fees

37,082


18,925


96


Office and occupancy

26,301


24,828


6


Systems and communications

25,801


25,716


0


Advertising and promotional

15,094


13,413


13


Travel and related

13,671


12,838


6


Intangible asset related

1,597


2,593


(38)


Other

25,037


23,733


5


Total Operating Expenses

626,622


633,113


(1)


Operating Income

251,743


312,593


(19)






Nonoperating Income (Expenses)




Investment income, net

23,576


13,667


73


Debt expense

(12,464)


(14,441)


(14)


Other, net

(3,840)


(3,308)


16


Total Nonoperating Income (Expenses), net

7,272


(4,082)


278


Income before income taxes

259,015


308,511


(16)


Income tax provision

92,660


110,883


(16)


Net income including noncontrolling interest in subsidiaries

166,355


197,628


(16)


Less: Net income attributable to the noncontrolling interest in subsidiaries

4,178


9,540


(56)


Net Income

$

162,177


$

188,088


(14)%






Amounts Attributable to Federated




Earnings Per Share1




Basic and diluted

$

1.55


$

1.79


(13)%


Weighted-average shares outstanding




Basic

100,668


100,313



Diluted

100,669


100,313



Dividends declared per share

$

0.98


$

2.47



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 $6.1 million and $8.4 million available to unvested restricted shares for the years ended Dec. 31, 2013 and Dec. 31, 2012, respectively, was excluded from the computation of earnings per share.

 

Unaudited Condensed Consolidated Balance Sheets



(in thousands)

Dec. 31, 2013

Dec. 31, 2012

Assets



Cash and other investments

$

292,178


$

258,628


Other current assets

47,140


41,434


Intangible assets, net and goodwill

735,345


727,857


Other long-term assets

61,134


62,142


Total Assets

$

1,135,797


$

1,090,061





Liabilities, Redeemable Noncontrolling Interests and Equity



Current liabilities

$

214,205


$

181,134


Long-term debt

198,333


276,250


Other long-term liabilities

141,398


128,733


Redeemable noncontrolling interests

15,517


7,268


Equity excluding treasury stock

1,317,583


1,256,698


Treasury stock

(751,239)


(760,022)


Total Liabilities, Redeemable Noncontrolling Interests and Equity

$

1,135,797


$

1,090,061


 

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

(in millions)



Quarter Ended


Year Ended


Dec. 31, 2013

Sept. 30, 2013

Dec. 31, 2012


Dec. 31, 2013

Dec. 31, 2012

Equity Funds







Beginning assets

$

25,930


$

25,030


$

23,658



$

23,152


$

21,930


Sales

1,913


1,856


1,415



7,439


6,221


Redemptions

(1,740)


(2,571)


(1,866)



(8,328)


(7,377)


Net sales (redemptions)

173


(715)


(451)



(889)


(1,156)


Net exchanges

47


77


(47)



214


(70)


Acquisition-related

0


0


0



0


190


Market gains and losses/reinvestments1

1,947


1,538


(8)



5,620


2,258


Ending assets

$

28,097


$

25,930


$

23,152



$

28,097


$

23,152









Equity Separate Accounts2







Beginning assets

$

14,353


$

13,675


$

11,697



$

11,858


$

8,957


Sales3

1,337


971


893



4,445


4,252


Redemptions3

(701)


(798)


(605)



(3,004)


(2,291)


Net sales3

636


173


288



1,441


1,961


Net exchanges

0


0


1



0


(8)


Market gains and losses/reinvestments1

1,062


505


(128)



2,752


948


Ending assets

$

16,051


$

14,353


$

11,858



$

16,051


$

11,858









Total Equity2







Beginning assets

$

40,283


$

38,705


$

35,355



$

35,010


$

30,887


Sales3

3,250


2,827


2,308



11,884


10,473


Redemptions3

(2,441)


(3,369)


(2,471)



(11,332)


(9,668)


Net sales (redemptions)3

809


(542)


(163)



552


805


Net exchanges

47


77


(46)



214


(78)


Acquisition-related

0


0


0



0


190


Market gains and losses/reinvestments1

3,009


2,043


(136)



8,372


3,206


Ending assets

$

44,148


$

40,283


$

35,010



$

44,148


$

35,010









Fixed-Income Funds







Beginning assets

$

39,944


$

40,188


$

41,547



$

42,478


$

37,241


Sales

3,944


4,382


4,848



18,706


20,426


Redemptions

(4,400)


(4,789)


(4,268)



(21,075)


(15,664)


Net (redemptions) sales

(456)


(407)


580



(2,369)


4,762


Net exchanges

(131)


(98)


141



(351)


(1,520)


Acquisition-related

0


0


0



0


144


Market gains and losses/reinvestments1

249


261


210



(152)


1,851


Ending assets

$

39,606


$

39,944


$

42,478



$

39,606


$

42,478









Fixed-Income Separate Accounts2







Beginning assets

$

10,018


$

9,817


$

9,842



$

10,233


$

7,573


Sales3

751


498


393



2,342


1,546


Redemptions3

(368)


(412)


(125)



(2,150)


(1,128)


Net sales3

383


86


268



192


418


Net exchanges

7


(10)


0



4


1,593


Market gains and losses/reinvestments1

112


125


123



91


649


Ending assets

$

10,520


$

10,018


$

10,233



$

10,520


$

10,233









Total Fixed Income2







Beginning assets

$

49,962


$

50,005


$

51,389



$

52,711


$

44,814


Sales3

4,695


4,880


5,241



21,048


21,972


Redemptions3

(4,768)


(5,201)


(4,393)



(23,225)


(16,792)


Net (redemptions) sales3

(73)


(321)


848



(2,177)


5,180


Net exchanges

(124)


(108)


141



(347)


73


Acquisition-related

0


0


0



0


144


Market gains and losses/reinvestments1

361


386


333



(61)


2,500


Ending assets

$

50,126


$

49,962


$

52,711



$

50,126


$

52,711


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


Year Ended


Dec. 31, 2013

Sept. 30, 2013

Dec. 31, 2012


Dec. 31, 2013

Dec. 31, 2012

Liquidation Portfolio1







Beginning assets

$

6,177


$

6,561


$

7,718



$

7,346


$

8,856


Liquidiations2

(319)


(384)


(372)



(1,488)


(1,510)


Ending assets

$

5,858


$

6,177


$

7,346



$

5,858


$

7,346


1) Liquidation portfolio represents a portfolio of distressed bonds at cost.  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) Liquidations reflect the cost of liquidated assets.

 







MANAGED ASSETS

(in millions)

Dec. 31, 2013

Sept. 30, 2013

June 30, 2013

March 31, 2013

Dec. 31, 2012

By Asset Class






Equity

$

44,148


$

40,283


$

38,705


$

37,852


$

35,010


Fixed-income

50,126


49,962


50,005


52,770


52,711


Money market

275,952


270,293


268,532


279,668


284,704


Liquidation portfolio1

5,858


6,177


6,561


7,019


7,346


Total Managed Assets

$

376,084


$

366,715


$

363,803


$

377,309


$

379,771


By Product Type






Funds:






Equity

$

28,097


$

25,930


$

25,030


$

24,491


$

23,152


Fixed-income

39,606


39,944


40,188


42,612


42,478


Money market

240,048


237,949


232,874


242,734


255,689


Total Fund Assets

$

307,751


$

303,823


$

298,092


$

309,837


$

321,319


Separate Accounts:






Equity

$

16,051


$

14,353


$

13,675


$

13,361


$

11,858


Fixed-income

10,520


10,018


9,817


10,158


10,233


Money market

35,904


32,344


35,658


36,934


29,015


Total Separate Accounts

$

62,475


$

56,715


$

59,150


$

60,453


$

51,106


Total Liquidation Portfolio1

$

5,858


$

6,177


$

6,561


$

7,019


$

7,346


Total Managed Assets

$

376,084


$

366,715


$

363,803


$

377,309


$

379,771



AVERAGE MANAGED ASSETS

Quarter Ended

(in millions)

Dec. 31, 2013

Sept. 30, 2013

June 30, 2013

March 31, 2013

Dec. 31, 2012

By Asset Class






Equity

$

42,539


$

39,910


$

38,762


$

36,685


$

35,016


Fixed-income

50,268


49,983


52,375


52,732


52,211


Money market

267,351


267,881


274,899


284,588


273,943


Liquidation portfolio1

6,050


6,434


6,834


7,215


7,559


Total Avg. Assets

$

366,208


$

364,208


$

372,870


$

381,220


$

368,729


By Product Type






Funds:






Equity

$

27,157


$

25,761


$

25,094


$

24,037


$

23,209


Fixed-income

39,883


39,987


42,258


42,581


42,156


Money market

234,788


234,528


237,790


250,652


248,534


Total Avg. Fund Assets

$

301,828


$

300,276


$

305,142


$

317,270


$

313,899


Separate Accounts:






Equity

$

15,382


$

14,149


$

13,668


$

12,648


$

11,807


Fixed-income

10,385


9,996


10,117


10,151


10,055


Money market

32,563


33,353


37,109


33,936


25,409


Total Avg. Separate Accounts

$

58,330


$

57,498


$

60,894


$

56,735


$

47,271


Total Avg. Liquidation Portfolio1

$

6,050


$

6,434


$

6,834


$

7,215


$

7,559


Total Avg. Managed Assets

$

366,208


$

364,208


$

372,870


$

381,220


$

368,729


1) Liquidation portfolio represents a portfolio of distressed bonds at cost.  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

Year Ended

(in millions)

Dec. 31, 2013


Dec. 31, 2012

By Asset Class




Equity

$

39,474



$

33,816


Fixed-income

51,340



48,986


Money market

273,680



274,206


Liquidation portfolio1

6,633



8,141


Total Avg. Assets

$

371,127



$

365,149


By Product Type




Funds:




Equity

$

25,512



$

23,015


Fixed-income

41,177



39,941


Money market

239,440



246,731


Total Avg. Fund Assets

$

306,129



$

309,687


Separate Accounts:




Equity

$

13,962



$

10,801


Fixed-income

10,163



9,045


Money market

34,240



27,475


Total Avg. Separate Accounts

$

58,365



$

47,321


Total Avg. Liquidation Portfolio1

$

6,633



$

8,141


Total Avg. Managed Assets

$

371,127



$

365,149


1) Liquidation portfolio represents a portfolio of distressed bonds at cost.  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.

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