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 Quarter Ended Change Year Ended Change Q4 2012 to Q4 Q3 2013 to Q4 2013 2013 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 managers(1). 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 Quarter Ended % Change Q4 2012 to Q3 2013 Q4 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 Share(1) 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 Share(1) 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/ reinvestments(1) 1,947 1,538 (8) 5,620 2,258 ------------------------ ----- ----- --- ----- ----- Ending assets $28,097 $25,930 $23,152 $28,097 $23,152 ------------- ------- ------- ------- ------- ------- Equity Separate Accounts(2) Beginning assets $14,353 $13,675 $11,697 $11,858 $8,957 ---------------- ------- ------- ------- ------- ------ Sales(3) 1,337 971 893 4,445 4,252 Redemptions(3) (701) (798) (605) (3,004) (2,291) ------------- ---- ---- ---- ------ ------ Net sales(3) 636 173 288 1,441 1,961 Net exchanges 0 0 1 0 (8) Market gains and losses/ reinvestments(1) 1,062 505 (128) 2,752 948 ------------------------ ----- --- ---- ----- --- Ending assets $16,051 $14,353 $11,858 $16,051 $11,858 ------------- ------- ------- ------- ------- ------- Total Equity(2) Beginning assets $40,283 $38,705 $35,355 $35,010 $30,887 ---------------- ------- ------- ------- ------- ------- Sales(3) 3,250 2,827 2,308 11,884 10,473 Redemptions(3) (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/ reinvestments(1) 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/ reinvestments(1) 249 261 210 (152) 1,851 ------------------------ --- --- --- ---- ----- Ending assets $39,606 $39,944 $42,478 $39,606 $42,478 ------------- ------- ------- ------- ------- ------- Fixed-Income Separate Accounts(2) Beginning assets $10,018 $9,817 $9,842 $10,233 $7,573 ---------------- ------- ------ ------ ------- ------ Sales(3) 751 498 393 2,342 1,546 Redemptions(3) (368) (412) (125) (2,150) (1,128) ------------- ---- ---- ---- ------ ------ Net sales(3) 383 86 268 192 418 Net exchanges 7 (10) 0 4 1,593 Market gains and losses/ reinvestments(1) 112 125 123 91 649 ------------------------ --- --- --- --- --- Ending assets $10,520 $10,018 $10,233 $10,520 $10,233 ------------- ------- ------- ------- ------- ------- Total Fixed Income(2) Beginning assets $49,962 $50,005 $51,389 $52,711 $44,814 ---------------- ------- ------- ------- ------- ------- Sales(3) 4,695 4,880 5,241 21,048 21,972 Redemptions(3) (4,768) (5,201) (4,393) (23,225) (16,792) ------------- ------ ------ ------ ------- ------- Net (redemptions) sales(3) (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/ reinvestments(1) 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 Portfolio(1) Beginning assets $6,177 $6,561 $7,718 $7,346 $8,856 ---------------- ------ ------ ------ ------ ------ Liquidiations(2) (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 Dec. 31, 2013 Sept. 30, 2013 June 30, 2013 March 31, 2013 Dec. 31, 2012 (in millions) ------------ --- 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 portfolio(1) 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 Portfolio(1) $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 portfolio(1) 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 Portfolio(1) $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 portfolio(1) 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 Portfolio(1) $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.