FEDERATED HERMES, INC. 
By PITTSBURGH, Jan. 26, 2012 /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 the quarter ended Dec. 31, 2011 as compared to $0.45 for the same quarter last year. Net income was $36.9 million for Q4 2011 compared to $46.4 million for Q4 2010. The decrease of $9.5 million primarily relates to an increase in the negative impact of money market fund minimum-yield waivers.
Federated reported EPS for the year ended Dec. 31, 2011 of $1.45 compared to $1.73 for the year ended Dec. 31, 2010. For the year ended Dec. 31, 2011, net income was $150.9 million compared to $179.1 million for the prior year. The decrease of $28.2 million primarily relates to an increase in the negative impact of money market fund minimum-yield waivers and an increase in professional service fees related to the recognition of insurance proceeds in Q2 2010.
Federated's total managed assets were $369.7 billion at Dec. 31, 2011, up $11.5 billion or 3 percent from $358.2 billion at Dec. 31, 2010 and up $18.0 billion or 5 percent from $351.7 billion reported at Sept. 30, 2011. Average managed assets for Q4 2011 were $358.3 billion, up $12.6 billion or 4 percent from $345.7 billion reported for Q4 2010 and up $9.5 billion or 3 percent from $348.8 billion reported for Q3 2011. Combined equity and fixed-income net sales for funds and separate accounts were a positive $2.2 billion for Q4 2011 and $2.9 billion for the year ended Dec. 31, 2011.
"In a year when income-seeking strategies were in demand, investors found a range of opportunities at Federated, from our multi-sector and high-yield bond strategies to the particular interest in equity portfolios investing in dividend-paying companies in the U.S. and across the globe," said J. Christopher Donahue, president and chief executive officer. "Combined assets in Federated's strategic-value portfolios more than doubled in 2011 to reach $10 billion, while our Strategic Value Dividend Fund became one of the best selling equity-income funds in the industry last year."
Federated's board of directors declared a quarterly dividend of $0.24 per share. The dividend is payable on Feb. 15, 2012 to shareholders of record as of Feb. 8, 2012. During Q4 2011, Federated purchased 561,850 shares of Federated class B common stock for $9.0 million. In 2011, the company purchased 1,540,795 shares of Federated class B common stock for $28.1 million.
Federated's equity assets were $30.9 billion at Dec. 31, 2011, up slightly from $30.8 billion at Dec. 31, 2010 and up $2.9 billion or 10 percent from $28.0 billion at Sept. 30, 2011. Net sales were positive in both equity funds and separate accounts for Q4 2011 and for the year ended Dec. 31, 2011. Top-selling equity funds during Q4 2011 on a net basis were Federated Strategic Value Dividend Fund, Federated International Strategic Value Dividend Fund and Federated Clover Small Value Fund.
Federated's fixed-income assets were $44.8 billion at Dec. 31, 2011, up $4.1 billion or 10 percent from $40.7 billion at Dec. 31, 2010 and up $1.9 billion or 4 percent from $42.9 billion at Sept. 30, 2011. Fixed-income assets in liquidation portfolios were $8.9 billion at Dec. 31, 2011. Sales were driven by strong net flows into Federated Total Return Bond Fund, Federated Municipal Ultrashort Fund, Federated Institutional High Yield Bond Fund, Federated Total Return Government Bond Fund and Federated's Capital Preservation Fund.
Money market assets in both funds and separate accounts were $285.1 billion at Dec. 31, 2011, up $9.1 billion or 3 percent from $276.0 billion at Dec. 31, 2010 and up $13.4 billion or 5 percent from $271.7 billion at Sept. 30, 2011. Money market mutual fund assets were $255.9 billion at Dec. 31, 2011, up $11.1 billion or 5 percent from $244.8 billion at Dec. 31, 2010 and up $10.6 billion or 4 percent from $245.3 billion at Sept. 30, 2011.
Financial Summary
Q4 2011 vs. Q4 2010
Revenue decreased by $28.9 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, as well as a change in the mix of, average equity assets. These decreases were partially offset by an increase in revenue from increased average money market and fixed-income assets. See additional information about voluntary fee waivers in the table at the end of this financial summary.
Federated derived 53 percent of its revenue from equity and fixed-income assets (31 percent from equity assets and 22 percent from fixed-income assets), 46 percent from money market assets and 1 percent from other products and services.
Operating expenses were $154.5 million compared to $166.3 million. This decrease of $11.8 million was primarily a result of lower distribution expense due to the aforementioned increase in fee waivers.
Q4 2011 vs. Q3 2011
Revenue increased by $2.4 million or 1 percent primarily related to an increase in money market and fixed-income assets, partially offset by a decrease in revenue related to changes in equity asset mix.
Operating expense increased by $7.5 million or 5 percent. This primarily related to a $4.3 million increase in distribution expense largely due to improved prime money market fund yields and increased assets.
2011 vs. 2010
Revenue decreased $56.8 million or 6 percent due primarily to an increase in the aforementioned fee waivers, partially offset by increased assets in all asset categories.
Federated derived 53 percent of its revenue from equity and fixed income assets (33 percent from equity assets and 20 percent from fixed-income assets), 46 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 distribution expense due to the aforementioned increase in fee waivers. This decrease was partially offset by an increase in professional service fees for 2011 related to the recognition of insurance proceeds in Q2 2010 and nonrecurring legal expenses in Q1 2011.
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 based on market conditions. The amount of these waivers will be determined by a variety of factors including, but not limited to, available yields on instruments held by the money market funds, changes in assets within money market funds, actions by the Federal Reserve, the U.S. Department of the Treasury and other governmental entities, changes in the mix of money market customer assets, changes in expenses of the money market funds and Federated's willingness to continue these waivers.
Money Market Fund Yield Waiver Impact
(in millions)
Quarter
Quarter Ended Change Ended Change Year Ended
------------- ----------
Q4 2010 Q3 2011 Dec.
(Decrease)/Increase Dec. 31, Dec. 31, to Sept. 30, to 31, Dec. 31, Change
------------------- -------- -------- -------- 2011 Q4 2011 ----- -------- ------
2010 to
2011 2010 Q4 2011 2011 2010 2011
---- ---- ------- ---- ---- --------
Investment
advisory fees $(58.8) $(32.6) $(26.2) $(57.2) $(1.6) $(201.6) $(134.3) $(67.3)
Other service
fees (30.2) (27.4) (2.8) (31.7) 1.5 (119.1) (107.3) (11.8)
------------- ----- ----- ---- ----- --- ------ ------ -----
Total Revenue $(89.0) $(60.0) $(29.0) $(88.9) $(0.1) $(320.7) $(241.6) $(79.1)
Distribution
expense (61.9) (47.7) (14.2) (63.2) 1.3 (232.3) (186.6) (45.7)
------------ ----- ----- ----- ----- --- ------ ------ -----
Operating
income $(27.1) $(12.3) $(14.8) $(25.7) $(1.4) $(88.4) $(55.0) $(33.4)
Noncontrolling
interest (1.0) (0.2) (0.8) (2.5) 1.5 (6.5) (1.0) (5.5)
-------------- ---- ---- ---- ---- --- ---- ---- ----
Pre-tax impact $(26.1) $(12.1) $(14.0) $(23.2) $(2.9) $(81.9) $(54.0) $(27.9)
-------------- ------ ------ ------ ------ ----- ------ ------ ------
Federated will host an earnings conference call at 9 a.m. Eastern on Jan. 27, 2012. 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 Feb. 3, 2012 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 386349.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $369.7 billion in assets as of Dec. 31, 2011. With 134 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 7 percent of fixed-income fund managers(1). For more information, visit http://FederatedInvestors.com.
1 Strategic Insight, Nov. 30, 2011. 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 advisor.
Certain statements in this press release, such as those related to the level of fee waivers incurred by the company, and 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
Quarter Ended % Change Ended % Change
------------- --------
Dec. 31, Dec. 31, Q4 2010 Sept. 30, Q3 2011
2011 2010 to 2011 to
--------- --------- -------- ---------- --------
Q4 2011 Q4 2011
------- -------
Revenue
Investment advisory fees, net $138,225 $165,174 (16)% $139,399 (1)%
Administrative service fees, net 56,830 54,410 4 54,928 3
Other service fees, net 20,249 25,054 (19) 19,008 7
Other, net 1,102 679 62 713 55
-------------------------------------------------- ----- --- --- --- ---
Total Revenue 216,406 245,317 (12) 214,048 1
------------- ------- ------- --- ------- ---
Operating Expenses
Compensation and related 60,620 56,384 8 57,930 5
General and administrative
Distribution 58,740 69,141 (15) 54,440 8
Professional service fees 9,567 9,385 2 9,437 1
Office and occupancy 6,254 5,968 5 6,202 1
Systems and communications 5,839 5,831 0 5,825 0
Travel and related 3,673 3,456 6 2,809 31
Advertising and promotional 3,524 2,630 34 3,887 (9)
Other 3,707 4,577 (19) 3,906 (5)
----- ----- ----- --- ----- ---
Total general and administrative 91,304 100,988 (10) 86,506 6
Amortization of deferred sales
commissions 1,378 2,924 (53) 1,338 3
Intangible asset related 1,243 5,989 (79) 1,263 (2)
------------------------ ----- ----- --- ----- ---
Total Operating Expenses 154,545 166,285 (7) 147,037 5
------------------------ ------- ------- --- ------- ---
Operating Income 61,861 79,032 (22) 67,011 (8)
---------------- ------ ------ --- ------ ---
Nonoperating Income (Expenses)
Investment income (expense), net 2,538 3,980 (36) (1,271) 300
Debt expense--recourse (3,860) (4,853) (20) (3,972) (3)
Other, net (103) (184) (44) (83) 24
---------- ---- ---- --- --- ---
Total Nonoperating Expenses, net (1,425) (1,057) 35 (5,326) (73)
-------------------------------- ------ ------ --- ------ ---
Income before income taxes 60,436 77,975 (22) 61,685 (2)
Income tax provision 21,811 29,344 (26) 23,165 (6)
-------------------- ------ ------ --- ------ ---
Net income including noncontrolling
interests in subsidiaries 38,625 48,631 (21) 38,520 0
Less: Net income attributable to the
noncontrolling interests in
subsidiaries 1,682 2,230 (25) 200 741
------------------------------------ ----- ----- --- --- ---
Net Income $36,943 $46,401 (20)% $38,320 (4)%
---------- ------- ------- ---- ------- ---
Amounts Attributable to Federated
Earnings Per Share(1)
Basic and Diluted $0.36 $0.45 (20)% $0.37 (3)%
-----
Weighted-average shares outstanding
Basic 100,264 99,976 100,684
Diluted 100,264 99,998 100,684
------- ------- ------ -------
Dividends declared per share $0.24 $0.24 $0.24
---------------------------- ----- ----- -----
1) Unvested share-based payment awards that receive non-forfeitable dividend
rights are considered participating securities and are required to be included in
the computation of earnings per share under the "two-class method." Total income
available to participating restricted shareholders was $1.2 million, $1.4 million
and $1.2 million for the quarterly periods ended Dec. 31, 2011, Dec. 31, 2010 and
Sept. 30, 2011, respectively.
Unaudited Condensed
Consolidated Statements of
Income
(in thousands, except per share
data)
Year Ended % Change
---------- --------
Dec. 31, Dec. 31,
2011 2010
--------- ---------
Revenue
Investment advisory
fees, net $586,340 $639,404 (8)%
Administrative
service fees, net 220,356 215,643 2
Other service fees,
net 85,385 94,035 (9)
Other, net 3,033 2,861 6
Total Revenue 895,114 951,943 (6)
------------- ------- ------- ---
Operating Expenses
Compensation and
related 245,439 242,853 1
General and administrative
Distribution 235,670 259,210 (9)
Professional
service fees 53,737 18,980 183
Office and
occupancy 24,689 22,958 8
Systems and
communications 22,971 22,828 1
Advertising and
promotional 13,413 10,110 33
Travel and related 12,174 11,461 6
Other 14,273 19,044 (25)
----- ------ ------ ---
Total general and
administrative 376,927 364,591 3
Intangible asset
related 7,915 22,511 (65)
Amortization of
deferred sales
commissions 7,378 12,197 (40)
--------------- ----- ------ ---
Total Operating
Expenses 637,659 642,152 (1)
Operating Income 257,455 309,791 (17)
---------------- ------- ------- ---
Nonoperating Income (Expenses)
Investment income,
net 6,259 6,872 (9)
Debt
expense--recourse (17,047) (15,049) 13
Other, net (296) (494) (40)
---------- ---- ---- ---
Total Nonoperating
Expenses, net (11,084) (8,671) 28
------------------ ------- ------ ---
Income before
income taxes 246,371 301,120 (18)
Income tax
provision 91,288 111,957 (18)
---------- ------ ------- ---
Net income
including
noncontrolling
interests in
subsidiaries 155,083 189,163 (18)
Less: Net income
attributable to
the noncontrolling
interests in
subsidiaries 4,177 10,049 (58)
------------------- ----- ------ ---
Net Income $150,906 $179,114 (16)%
---------- -------- -------- ----
Amounts Attributable to
Federated
Earnings Per Share(1)
Basic and Diluted $1.45 $1.73 (16)%
Weighted-average shares
outstanding
Basic 100,609 99,925
Diluted 100,632 99,993
------- ------- ------
Dividends declared
per share $0.96 $2.22
------------------ ----- -----
1) Unvested share-based payment awards that
receive non-forfeitable dividend rights are
considered participating securities and are
required to be included in the computation of
earnings per share under the "two-class method."
Total income available to participating restricted
shareholders was $4.9 million and $6.4 million for
the twelve months ended Dec. 31, 2011 and Dec. 31,
2010, respectively.
Unaudited Condensed Consolidated Balance Sheets
Dec. 31, Dec. 31,
(in thousands) 2011 2010
-------------- --------- ---------
Assets
Cash and other investments $322,317 $333,641
Other current assets 44,194 39,529
Deferred sales commissions, net 10,888 10,317
Intangible assets, net and goodwill 720,926 720,825
Other long-term assets 52,531 49,192
---------------------- ------ ------
Total Assets $1,150,856 $1,153,504
------------ ---------- ----------
Liabilities and Equity
Current liabilities $187,356 $214,352
Long-term debt-recourse 318,750 361,250
Other long-term liabilities 101,567 84,187
Equity excluding treasury stock 1,315,664 1,272,324
Treasury stock (772,481) (778,609)
-------------- -------- --------
Total Liabilities and Equity $1,150,856 $1,153,504
---------------------------- ---------- ----------
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,
2011 2011 2010 2011 2010
--------- ---------- --------- --------- ---------
Equity Funds
Beginning assets $20,140 $22,678 $21,325 $22,626 $20,960
---------------- ------- ------- ------- ------- -------
Sales 2,185 2,434 1,756 7,633 6,288
Redemptions (1,771) (1,966) (1,937) (7,461) (7,041)
----------- ------ ------ ------ ------ ------
Net sales
(redemptions) 414 468 (181) 172 (753)
Net exchanges (32) (40) 7 (76) (47)
Acquisition-
related 0 463 0 463 0
Market gains and
losses/
reinvestments(1) 1,408 (3,429) 1,475 (1,255) 2,466
----------------- ----- ------ ----- ------ -----
Ending assets $21,930 $20,140 $22,626 $21,930 $22,626
------------- ------- ------- ------- ------- -------
Equity Separate Accounts(2)
Beginning assets $7,831 $8,702 $7,808 $8,176 $8,713
---------------- ------ ------ ------ ------ ------
Sales(3) 873 723 464 2,861 1,689
Redemptions(3) (549) (631) (760) (2,530) (3,149)
-------------- ---- ---- ---- ------ ------
Net sales
(redemptions)(3) 324 92 (296) 331 (1,460)
Net exchanges 26 7 10 54 41
Market gains and
losses/
reinvestments(1) 776 (970) 654 396 882
----------------- --- ---- --- --- ---
Ending assets $8,957 $7,831 $8,176 $8,957 $8,176
------------- ------ ------ ------ ------ ------
Total Equity(2)
Beginning assets $27,971 $31,380 $29,133 $30,802 $29,673
---------------- ------- ------- ------- ------- -------
Sales(3) 3,058 3,157 2,220 10,494 7,977
Redemptions(3) (2,320) (2,597) (2,697) (9,991) (10,190)
-------------- ------ ------ ------ ------ -------
Net sales
(redemptions)(3) 738 560 (477) 503 (2,213)
Net exchanges (6) (33) 17 (22) (6)
Acquisition-
related 0 463 0 463 0
Market gains and
losses/
reinvestments(1) 2,184 (4,399) 2,129 (859) 3,348
----------------- ----- ------ ----- ---- -----
Ending assets $30,887 $27,971 $30,802 $30,887 $30,802
------------- ------- ------- ------- ------- -------
Fixed-Income Funds
Beginning assets $35,620 $34,874 $32,211 $31,933 $28,427
---------------- ------- ------- ------- ------- -------
Sales 4,696 4,049 3,820 17,990 15,595
Redemptions (3,417) (3,707) (3,743) (15,844) (13,136)
----------- ------ ------ ------ ------- -------
Net sales(3) 1,279 342 77 2,146 2,459
Net exchanges 38 29 (71) 1,873 (20)
Acquisition-
related 0 132 0 132 0
Market gains and
losses/
reinvestments(1) 304 243 (284) 1,157 1,067
----------------- --- --- ---- ----- -----
Ending assets $37,241 $35,620 $31,933 $37,241 $31,933
------------- ------- ------- ------- ------- -------
Fixed-Income Separate
Accounts(2)
Beginning assets $7,263 $7,544 $7,963 $8,772 $5,360
---------------- ------ ------ ------ ------ ------
Sales(3) 415 198 1,014 1,698 4,303
Redemptions(3) (195) (469) (150) (1,443) (1,228)
-------------- ---- ---- ---- ------ ------
Net sales
(redemptions)(3) 220 (271) 864 255 3,075
Net exchanges 1 0 0 (1,806) 0
Market gains and
losses/
reinvestments(1) 89 (10) (55) 352 337
----------------- --- --- --- --- ---
Ending assets $7,573 $7,263 $8,772 $7,573 $8,772
------------- ------ ------ ------ ------ ------
Total Fixed Income(2)
Beginning assets $42,883 $42,418 $40,174 $40,705 $33,787
---------------- ------- ------- ------- ------- -------
Sales(3) 5,111 4,247 4,834 19,688 19,898
Redemptions(3) (3,612) (4,176) (3,893) (17,287) (14,364)
-------------- ------ ------ ------ ------- -------
Net sales(3) 1,499 71 941 2,401 5,534
Net exchanges 39 29 (71) 67 (20)
Acquisition-
related 0 132 0 132 0
Market gains and
losses/
reinvestments(1) 393 233 (339) 1,509 1,404
----------------- --- --- ---- ----- -----
Ending assets $44,814 $42,883 $40,705 $44,814 $40,705
------------- ------- ------- ------- ------- -------
1) Reflects the approximate changes in the market 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,
2011 2011 2010 2011 2010
--------- ---------- --------- --------- ---------
Liquidation Portfolios(1)
Beginning assets $9,144 $9,964 $11,071 $10,708 $12,596
---------------- ------ ------ ------- ------- -------
Sales(2) 0 0 2 2 12
Redemptions(2) (289) (820) (365) (1,854) (1,900)
-------------- ---- ---- ---- ------ ------
Net
redemptions(2) (289) (820) (363) (1,852) (1,888)
Market gains and
losses/
reinvestments(3) 1 0 0 0 0
----------------- --- --- --- --- ---
Ending Assets $8,856 $9,144 $10,708 $8,856 $10,708
------------- ------ ------ ------- ------ -------
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) 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.
3) Reflects the approximate changes in the market 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.
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
MANAGED ASSETS 2011 2011 2011 2011 2010
-------------- --------- ---------- --------- ---------- ---------
(in millions)
-------------
By Asset Class
--------------
Equity $30,887 $27,971 $31,380 $31,641 $30,802
Fixed-income 44,814 42,883 42,418 41,756 40,705
Money market 285,140 271,653 265,651 271,141 276,026
Liquidation
portfolios(1) 8,856 9,144 9,964 10,384 10,708
-------------- ----- ----- ----- ------ ------
Total Managed
Assets $369,697 $351,651 $349,413 $354,922 $358,241
------------- -------- -------- -------- -------- --------
By Product Type
---------------
Funds:
Equity $21,930 $20,140 $22,678 $22,848 $22,626
Fixed-income 37,241 35,620 34,874 32,689 31,933
Money market 255,857 245,293 236,077 238,990 244,796
------------ ------- ------- ------- ------- -------
Total Fund
Assets $315,028 $301,053 $293,629 $294,527 $299,355
---------- -------- -------- -------- -------- --------
Separate Accounts:
Equity $8,957 $7,831 $8,702 $8,793 $8,176
Fixed-income 7,573 7,263 7,544 9,067 8,772
Money market 29,283 26,360 29,574 32,151 31,230
------------ ------ ------ ------ ------ ------
Total Separate
Accounts $45,813 $41,454 $45,820 $50,011 $48,178
-------------- ------- ------- ------- ------- -------
Total
Liquidation
Portfolios(1) $8,856 $9,144 $9,964 $10,384 $10,708
-------------- ------ ------ ------ ------- -------
Total Managed
Assets $369,697 $351,651 $349,413 $354,922 $358,241
------------- -------- -------- -------- -------- --------
AVERAGE
MANAGED
ASSETS Quarter Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
(in millions) 2011 2011 2011 2011 2010
------------- --------- ---------- --------- ---------- ---------
By Asset Class
--------------
Equity $29,965 $29,699 $31,520 $31,056 $30,108
Fixed-income 43,980 43,001 42,127 41,187 40,686
Money market 275,295 266,756 270,411 273,542 263,976
Liquidation
portfolios(1) 9,030 9,309 10,138 10,534 10,926
-------------- ----- ----- ------ ------ ------
Total Avg.
Assets $358,270 $348,765 $354,196 $356,319 $345,696
---------- -------- -------- -------- -------- --------
By Product Type
---------------
Funds:
Equity $21,451 $21,491 $22,741 $22,599 $22,090
Fixed-income 36,546 35,478 33,534 32,265 32,369
Money market 249,324 239,406 239,642 240,375 236,500
------------ ------- ------- ------- ------- -------
Total Avg.
Fund Assets $307,321 $296,375 $295,917 $295,239 $290,959
------------ -------- -------- -------- -------- --------
Separate Accounts:
Equity $8,514 $8,208 $8,779 $8,457 $8,018
Fixed-income 7,434 7,523 8,593 8,922 8,317
Money market 25,971 27,350 30,769 33,167 27,476
------------ ------ ------ ------ ------ ------
Total Avg.
Separate
Accounts $41,919 $43,081 $48,141 $50,546 $43,811
---------- ------- ------- ------- ------- -------
Total Avg.
Liquidation
Portfolios(1) $9,030 $9,309 $10,138 $10,534 $10,926
-------------- ------ ------ ------- ------- -------
Total Avg.
Managed
Assets $358,270 $348,765 $354,196 $356,319 $345,696
---------- -------- -------- -------- -------- --------
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, 2011 Dec. 31, 2010
------------- ------------- -------------
By Asset Class
--------------
Equity $30,560 $29,104
Fixed-income 42,573 37,690
Money market 271,501 268,701
Liquidation Portfolios 9,753 11,579
---------------------- ----- ------
Total Avg. Assets $354,387 $347,074
----------------- -------- --------
By Product Type
---------------
Funds:
Equity $22,071 $21,016
Fixed-income 34,455 30,864
Money market 242,187 238,767
------------ ------- -------
Total Avg. Fund Assets $298,713 $290,647
---------------------- -------- --------
Separate Accounts:
Equity $8,489 $8,088
Fixed-income 8,118 6,826
Money market 29,314 29,934
Total Avg. Separate Accounts $45,921 $44,848
---------------------------- ------- -------
Total Avg. Liquidation
Portfolios(1) $9,753 $11,579
---------------------- ------ -------
Total Avg. Managed Assets $354,387 $347,074
------------------------- -------- --------
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.
