FEDERATED HERMES, INC. PITTSBURGH, Jan. 22, 2015 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.38 for Q4 2014, compared to $0.39 for the same quarter last year on net income of $39.6 million for Q4 2014, compared to $41.1 million for Q4 2013. Federated reported 2014 EPS of $1.42 on net income of $149.2 million, compared to EPS of $1.55 on net income of $162.2 million for 2013.
Federated's total managed assets were $362.9 billion at Dec. 31, 2014, down $13.2 billion or 4 percent from $376.1 billion at Dec. 31, 2013 and up $10.6 billion or 3 percent from $352.3 billion at Sept. 30, 2014. Federated's equity and fixed-income assets were $104.1 billion at Dec. 31, 2014, up $9.8 billion or 10 percent from $94.3 billion at Dec. 31, 2013 and up $2.6 billion or 3 percent from $101.5 billion at Sept. 30, 2014. Assets in the liquidation portfolio were fully liquidated in Q4 2014. Liquidation portfolio assets were $5.9 billion at Dec. 31, 2013 and $5.2 billion at Sept. 30, 2014. Average managed assets for Q4 2014 were $351.9 billion, down $14.3 billion or 4 percent from $366.2 billion reported for Q4 2013 and up $2.7 billion or 1 percent from $349.2 billion reported for Q3 2014.
"A range of Federated equity strategies again delivered strong performance for their shareholders in 2014. Eight funds, or more than 30 percent of Federated's equity funds, earned top-decile performance on a three-year basis at quarter end, contributing to record net equity sales for the year," said J. Christopher Donahue, president and chief executive officer. "At the same time, we continued to see demand for fixed-income products such as the Federated Total Return Bond Fund."
Federated's board of directors declared a quarterly dividend of $0.25 per share. The dividend is payable on Feb. 13, 2015 to shareholders of record as of Feb. 6, 2015. During Q4 2014, Federated purchased 200,000 shares of Federated class B common stock for $6.2 million.
Federated's equity assets were a record $51.4 billion at Dec. 31, 2014, up $7.3 billion or 17 percent from $44.1 billion at Dec. 31, 2013 and up $1.1 billion or 2 percent from $50.3 billion at Sept. 30, 2014. Top-selling equity funds during Q4 2014 on a net basis were Federated Strategic Value Dividend Fund, Federated Capital Income Fund, Federated Kaufmann Large Cap Fund, Federated Muni and Stock Advantage Fund and Federated International Strategic Value Dividend Fund.
Federated's fixed-income assets were $52.7 billion at Dec. 31, 2014, up $2.6 billion or 5 percent from $50.1 billion at Dec. 31, 2013 and up $1.5 billion or 3 percent from $51.2 billion at Sept. 30, 2014. Top-selling fixed-income funds during Q4 2014 on a net basis were Federated Total Return Bond Fund, Federated Institutional High Yield Bond Fund, Federated Ultrashort Bond Fund, Federated U.S. Government Securities Fund: 2-5 Years and Federated Sterling Cash Plus Fund.
Federated's money market assets were $258.8 billion at Dec. 31, 2014, down $17.2 billion or 6 percent from $276.0 billion at Dec. 31, 2013 and up $13.3 billion or 5 percent from $245.5 billion at Sept. 30, 2014. Money market mutual fund assets were $225.5 billion at Dec. 31, 2014, down $14.5 billion or 6 percent from $240.0 billion at Dec. 31, 2013 and up $10.3 billion or 5 percent from $215.2 billion at Sept. 30, 2014.
Financial Summary
Q4 2014 vs. Q4 2013
Revenue increased by $3.1 million or 1 percent due to higher average equity assets under management, partially offset by lower average money market assets. The increase in revenue was also due to a decrease in voluntary fee waivers related to certain money market assets primarily due to lower average money market assets. For information about voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields, please see the table at the end of this financial summary.
During Q4 2014, Federated derived 69 percent of its revenue from equity and fixed-income assets (46 percent from equity assets and 23 percent from fixed-income assets) and 31 percent from money market assets.
Operating expenses increased by $1.3 million or 1 percent primarily due to an increase in compensation and related expenses.
Nonoperating income (expenses), net decreased by $3.9 million or 88 percent primarily due to a decrease in gains realized from investments.
Q4 2014 vs. Q3 2014
Revenue increased by $0.9 million primarily due to higher average money market, equity and fixed-income assets.
Operating expenses increased by $0.1 million.
Nonoperating income (expenses), net increased by $1.9 million or 138 percent primarily due to decreases in the fair value of trading securities held in Q3 as compared to slight increases in the fair value of trading securities held in Q4.
2014 vs. 2013
Revenue decreased by $19.1 million or 2 percent primarily due to lower average money market assets, increased voluntary fee waivers related to certain money market funds and a change in the mix of average fixed-income assets. The decrease was partially offset by higher average equity assets.
During 2014, Federated derived 67 percent of its revenue from equity and fixed-income assets (45 percent from equity assets and 22 percent from fixed-income assets), 32 percent from money market assets and 1 percent from other products and services.
Operating expenses decreased by $5.3 million or 1 percent primarily due to a decrease in distribution expenses associated with lower average money market fund assets and a decrease in professional service fees, partially offset by an increase in compensation and related expenses.
Nonoperating income (expenses), net decreased by $5.9 million or 81 percent primarily due to a decrease in gains realized from investments. The decrease was partially offset by non-cash impairment charges of a minority interest investment in 2013.
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, expenses and regulatory changes, can significantly impact Federated's business activity levels and financial results. 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 (SEC).
Fee waivers to maintain positive or zero net yields on money market funds 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, yields on instruments available for purchase by the money market funds, actions by the Federal Reserve, the U.S. Department of the Treasury, the SEC, 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 structure of money market funds, demand for competing products, changes in the distribution fee arrangements with third parties, 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.
Unaudited Money Market Fund Yield Waiver Impact to the Consolidated Statements of Income
(in millions)
Quarter Ended Change Quarter Ended Change Year Ended
------------- ----------
Dec. 31, 2014 Dec. 31, 2013 Q4 2013 to Sept. 30, 2014 Q3 2014 to Dec. 31, 2014 Dec. 31, 2013 Change
Q4 2014 2013 to 2014
Q4 2014
---
Investment advisory fees $(67.4) $(70.9) $3.5 $(69.3) $1.9 $(279.5) $(255.9) $(23.6)
Other service fees (32.4) (33.7) 1.3 (32.4) 0.0 (131.1) (133.1) 2.0
------------------ ----- ----- --- ----- --- ------ ------ ---
Total revenue $(99.8) $(104.6) $4.8 $(101.7) $1.9 $(410.6) $(389.0) $(21.6)
Less: Reduction in distribution expense 67.6 73.3 (5.7) 68.7 (1.1) 280.9 277.1 3.8
--------------------------------------- ---- ---- ---- ---- ---- ----- ----- ---
Operating income $(32.2) $(31.3) $(0.9) $(33.0) $0.8 $(129.7) $(111.9) $(17.8)
Less: Reduction in 2.7 2.0 0.7 2.8 (0.1) 10.7 6.8 3.9
noncontrolling interest
----------------------- ---
Pre-tax impact $(29.5) $(29.3) $(0.2) $(30.2) $0.7 $(119.0) $(105.1) $(13.9)
-------------- ------ ------ ----- ------ ---- ------- ------- ------
Federated will host an earnings conference call at 9 a.m. Eastern on Jan. 23, 2015. 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. 30, 2015 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 13598386.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $362.9 billion in assets as of Dec. 31, 2014. With 131 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 7,700 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 6 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, 2014. 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 and preferences, asset flows and mix, changes in product structure, fee arrangements with customers, distribution expense, regulatory changes 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 Quarter Ended % Change Q3
------------- -------------
Dec. 31, 2014 Dec. 31, 2013 2013 to Q4 Sept. 30, 2014 2014 to Q4
2014 2014
--- --- ----
Revenue
Investment advisory fees, net $143,587 $138,051 4% $141,086 2%
Administrative service fees, net-affiliates 53,427 55,354 (3) 52,244 2
Other service fees, net 19,562 20,399 (4) 22,249 (12)
Other, net 1,282 918 40 1,336 (4)
----- --- --- ----- ---
Total Revenue 217,858 214,722 1 216,915 0
------------- ------- ------- --- ------- ---
Operating Expenses
Compensation and related 72,161 68,725 5 70,724 2
Distribution 49,980 49,802 0 50,149 (0)
Office and occupancy 7,526 6,838 10 8,241 (9)
Systems and communications 6,773 6,628 2 6,392 6
Professional service fees 5,714 9,241 (38) 7,944 (28)
Travel and related 3,792 4,108 (8) 3,028 25
Advertising and promotional 3,661 3,760 (3) 3,271 12
Other 6,617 5,862 13 6,338 4
----- ----- ----- --- ----- ---
Total Operating Expenses 156,224 154,964 1 156,087 0
------------------------ ------- ------- --- ------- ---
Operating Income 61,634 59,758 3 60,828 1
---------------- ------ ------ --- ------ ---
Nonoperating Income (Expenses)
Investment income, net 2,325 8,089 (71) 794 193
Debt expense (1,787) (2,996) (40) (2,162) (17)
Other, net (15) (636) (98) (4) 275
--- ---- --- --- ---
Total Nonoperating Income (Expenses), net 523 4,457 (88) (1,372) 138
----------------------------------------- --- ----- --- ------ ---
Income before income taxes 62,157 64,215 (3) 59,456 5
Income tax provision 22,552 22,039 2 22,197 2
-------------------- ------ ------ --- ------ ---
Net income including the noncontrolling interests in subsidiaries 39,605 42,176 (6) 37,259 6
Less: Net (loss) income attributable to the noncontrolling (8) 1,105 (101) (301) 97
interests in subsidiaries
---
Net Income $39,613 $41,071 (4)% $37,560 5%
---------- ------- ------- --- ------- ---
Amounts Attributable to Federated Investors, Inc.
Earnings Per Share(1)
Basic and diluted $0.38 $0.39 (3)% $0.36 6%
----------------- ----- ----- --- ----- ---
Weighted-average shares outstanding
Basic 100,642 100,760 100,729
Diluted 100,643 100,762 100,731
------- ------- ------- -------
Dividends declared per share $0.25 $0.25 0% $0.25 0%
---------------------------- ----- ----- --- ----- ---
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 $1.5 million, $1.4 million and $1.5 million available
to unvested restricted shareholders for the quarterly periods ended Dec. 31, 2014, Dec. 31, 2013 and Sept. 30, 2014, respectively, was excluded from the computation of earnings per share.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Year Ended
----------
Dec. 31, 2014 Dec. 31, 2013 % Change
------------- ------------- --------
Revenue
Investment advisory fees, net $557,318 $570,952 (2)%
Administrative service fees, net-affiliates 213,136 222,487 (4)
Other service fees, net 84,039 79,608 6
Other, net 4,757 5,318 (11)
---------- ----- ----- ---
Total Revenue 859,250 878,365 (2)
------------- ------- ------- ---
Operating Expenses
Compensation and related 285,337 269,138 6
Distribution 197,943 212,901 (7)
Professional service fees 30,216 37,082 (19)
Office and occupancy 29,968 26,301 14
Systems and communications 25,794 25,801 (0)
Advertising and promotional 13,330 15,094 (12)
Travel and related 13,219 13,671 (3)
Other 25,494 26,634 (4)
----- ------ ------ ---
Total Operating Expenses 621,301 626,622 (1)
------------------------ ---
Operating Income 237,949 251,743 (5)
---------------- ------- ------- ---
Nonoperating Income (Expenses)
Investment income, net 11,043 23,576 (53)
Debt expense (9,611) (12,464) (23)
Other, net (29) (3,840) (99)
---------- --- ------ ---
Total Nonoperating Income, net 1,403 7,272 (81)
------------------------------ ----- ----- ---
Income before income taxes 239,352 259,015 (8)
Income tax provision 89,530 92,660 (3)
-------------------- ------ ------ ---
Net income including the noncontrolling interests in subsidiaries 149,822 166,355 (10)
Less: Net income attributable to the noncontrolling 586 4,178 (86)
interests in subsidiaries
------------------------- ---
Net Income $149,236 $162,177 (8)%
---------- -------- -------- ---
Amounts Attributable to Federated Investors, Inc.
Earnings Per Share(1)
Basic and diluted $1.42 $1.55 (8)%
----------------- ----- ----- ---
Weighted-average shares outstanding
Basic 100,721 100,668
Diluted 100,723 100,669
------- ------- -------
Dividends declared per share $1.00 $0.98 2
---------------------------- ----- ----- ---
1) Unvested share-based payment awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method."
As such, total net income of $5.8 million and $6.1 million available to unvested restricted shareholders for the years ended Dec. 31, 2014 and Dec. 31, 2013, respectively, was excluded from the computation of earnings per
share.
Unaudited Condensed Consolidated Balance Sheets
(in thousands) Dec. 31, 2014 Dec. 31, 2013
------------- ------------- -------------
Assets
Cash and other investments $297,338 $292,178
Other current assets 44,717 47,140
Intangible assets, net and goodwill 733,847 735,345
Other long-term assets 64,617 61,134
---------------------- ------ ------
Total Assets $1,140,519 $1,135,797
------------ ---------- ----------
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities $149,321 $214,205
Long-term debt 216,750 198,333
Other long-term liabilities 161,099 141,398
Redeemable noncontrolling interests 3,697 15,517
Equity excluding treasury stock(1) 774,910 1,317,583
Treasury stock(1) (165,258) (751,239)
---------------- -------- --------
Total Liabilities, Redeemable Noncontrolling Interests and Equity $1,140,519 $1,135,797
----------------------------------------------------------------- ---------- ----------
1) During the fourth quarter 2014, the board of directors authorized the retirement of 20 million treasury shares, which restored them to authorized but unissued status. There was no impact to total equity as a
result of this transaction.
Unaudited Changes in Equity and Fixed-Income Fund and Separate Account Assets
(in millions; excludes liquidation portfolio)
Quarter Ended Year Ended
------------- ----------
Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2013
------------- -------------- ------------- ------------- -------------
Equity funds
Beginning assets $32,088 $31,673 $25,930 $28,097 $23,152
---------------- ------- ------- ------- ------- -------
Sales 2,650 2,632 1,913 10,140 7,439
Redemptions (1,844) (1,389) (1,740) (6,530) (8,328)
----------- ------ ------ ------ ------ ------
Net sales (redemptions) 806 1,243 173 3,610 (889)
Net exchanges (7) 8 47 42 214
Market gains and losses/reinvestments(1) 254 (836) 1,947 1,392 5,620
-------------------------------------------- --- ---- ----- ----- -----
Ending assets $33,141 $32,088 $28,097 $33,141 $28,097
------------- ------- ------- ------- ------- -------
Equity separate accounts(2)
Beginning assets $18,247 $18,215 $14,353 $16,051 $11,858
---------------- ------- ------- ------- ------- -------
Sales(3) 1,392 1,131 1,337 4,536 4,445
Redemptions(3) (1,622) (737) (701) (3,883) (3,004)
------------- ------ ---- ---- ------ ------
Net (redemptions) sales(3) (230) 394 636 653 1,441
Market gains and losses4 268 (362) 1,062 1,581 2,752
------------------------ --- ---- ----- ----- -----
Ending assets $18,285 $18,247 $16,051 $18,285 $16,051
------------- ------- ------- ------- ------- -------
Total equity(2)
Beginning assets $50,335 $49,888 $40,283 $44,148 $35,010
---------------- ------- ------- ------- ------- -------
Sales(3) 4,042 3,763 3,250 14,676 11,884
Redemptions(3) (3,466) (2,126) (2,441) (10,413) (11,332)
------------- ------ ------ ------ ------- -------
Net sales(3) 576 1,637 809 4,263 552
Net exchanges (7) 8 47 42 214
Market gains and losses/reinvestments(1) 522 (1,198) 3,009 2,973 8,372
-------------------------------------------- --- ------ ----- ----- -----
Ending assets $51,426 $50,335 $44,148 $51,426 $44,148
------------- ------- ------- ------- ------- -------
Fixed-income funds
Beginning assets $40,435 $40,357 $39,944 $39,606 $42,478
---------------- ------- ------- ------- ------- -------
Sales 4,631 3,982 3,944 16,186 18,706
Redemptions (4,411) (3,744) (4,400) (16,120) (21,075)
----------- ------ ------ ------ ------- -------
Net sales (redemptions) 220 238 (456) 66 (2,369)
Net exchanges (285) 1 (131) (354) (351)
Acquisition related 0 0 0 301 0
Market gains and losses/reinvestments(1) 86 (161) 249 837 (152)
-------------------------------------------- --- ---- --- --- ----
Ending assets $40,456 $40,435 $39,606 $40,456 $39,606
------------- ------- ------- ------- ------- -------
Fixed-income separate accounts(2)
Beginning assets $10,752 $10,772 $10,018 $10,520 $10,233
---------------- ------- ------- ------- ------- -------
Sales(3) 1,499 263 751 2,393 2,342
Redemptions(3) (306) (268) (368) (1,343) (2,150)
------------- ---- ---- ---- ------ ------
Net sales (redemptions)(3) 1,193 (5) 383 1,050 192
Net exchanges 229 0 7 230 4
Market gains and losses4 77 (15) 112 451 91
------------------------ --- --- --- --- ---
Ending assets $12,251 $10,752 $10,520 $12,251 $10,520
------------- ------- ------- ------- ------- -------
Total fixed income(2)
Beginning assets $51,187 $51,129 $49,962 $50,126 $52,711
---------------- ------- ------- ------- ------- -------
Sales(3) 6,130 4,245 4,695 18,579 21,048
Redemptions(3) (4,717) (4,012) (4,768) (17,463) (23,225)
------------- ------ ------ ------ ------- -------
Net sales (redemptions)(3) 1,413 233 (73) 1,116 (2,177)
Net exchanges (56) 1 (124) (124) (347)
Acquisition related 0 0 0 301 0
Market gains and losses/reinvestments(1) 163 (176) 361 1,288 (61)
-------------------------------------------- --- ---- --- ----- ---
Ending assets $52,707 $51,187 $50,126 $52,707 $50,126
------------- ------- ------- ------- ------- -------
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.
4) Reflects the approximate changes in the fair value of the securities held by the portfolios.
Unaudited Total Changes in Equity and Fixed-Income Assets
(in millions; excludes liquidation portfolio)
Quarter Ended Year Ended
------------- ----------
Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2013
------------- -------------- ------------- ------------- -------------
Funds
Beginning assets $72,523 $72,030 $65,874 $67,703 $65,630
---------------- ------- ------- ------- ------- -------
Sales 7,281 6,614 5,857 26,326 26,145
Redemptions (6,255) (5,133) (6,140) (22,650) (29,403)
----------- ------ ------ ------ ------- -------
Net sales (redemptions) 1,026 1,481 (283) 3,676 (3,258)
Net exchanges (292) 9 (84) (312) (137)
Acquisition related 0 0 0 301 0
Market gains and losses/reinvestments(1) 340 (997) 2,196 2,229 5,468
-------------------------------------------- --- ---- ----- ----- -----
Ending assets $73,597 $72,523 $67,703 $73,597 $67,703
------------- ------- ------- ------- ------- -------
Separate accounts(2)
Beginning assets $28,999 $28,987 $24,371 $26,571 $22,091
---------------- ------- ------- ------- ------- -------
Sales(3) 2,891 1,394 2,088 6,929 6,787
Redemptions(3) (1,928) (1,005) (1,069) (5,226) (5,154)
------------- ------ ------ ------ ------ ------
Net sales(3) 963 389 1,019 1,703 1,633
Net exchanges 229 0 7 230 4
Market gains and losses4 345 (377) 1,174 2,032 2,843
------------------------ --- ---- ----- ----- -----
Ending assets $30,536 $28,999 $26,571 $30,536 $26,571
------- ------- ------- ------- -------
Total assets (2)
Beginning assets $101,522 $101,017 $90,245 $94,274 $87,721
---------------- -------- -------- ------- ------- -------
Sales(3) 10,172 8,008 7,945 33,255 32,932
Redemptions(3) (8,183) (6,138) (7,209) (27,876) (34,557)
------------- ------ ------ ------ ------- -------
Net sales (redemptions)(3) 1,989 1,870 736 5,379 (1,625)
Net exchanges (63) 9 (77) (82) (133)
Acquisition related 0 0 0 301 0
Market gains and losses/reinvestments(1) 685 (1,374) 3,370 4,261 8,311
-------------------------------------------- --- ------ ----- ----- -----
Ending assets $104,133 $101,522 $94,274 $104,133 $94,274
------------- -------- -------- ------- -------- -------
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.
4) Reflects the approximate changes in the fair value of the securities held by the portfolios.
(unaudited)
----------
MANAGED ASSETS Dec. 31, 2014 Sept. 30, 2014 June 30, 2014 March 31, 2014 Dec. 31, 2013
(in millions)
------------ ---
By Asset Class
--------------
Equity $51,426 $50,335 $49,888 $45,879 $44,148
Fixed-income 52,707 51,187 51,129 50,983 50,126
Money market 258,772 245,536 245,201 263,648 275,952
Liquidation portfolio(1) 0 5,197 5,408 5,690 5,858
--- ----- ----- ----- -----
Total Managed Assets $362,905 $352,255 $351,626 $366,200 $376,084
-------------------- -------- -------- -------- -------- --------
By Product Type
---------------
Funds:
Equity $33,141 $32,088 $31,673 $29,208 $28,097
Fixed-income 40,456 40,435 40,357 40,237 39,606
Money market 225,471 215,237 212,434 227,470 240,048
Total Fund Assets $299,068 $287,760 $284,464 $296,915 $307,751
----------------- -------- -------- -------- -------- --------
Separate accounts:
Equity $18,285 $18,247 $18,215 $16,671 $16,051
Fixed-income 12,251 10,752 10,772 10,746 10,520
Money market 33,301 30,299 32,767 36,178 35,904
Total Separate Accounts $63,837 $59,298 $61,754 $63,595 $62,475
----------------------- ------- ------- ------- ------- -------
Total Liquidation Portfolio(1) $0 $5,197 $5,408 $5,690 $5,858
----------------------------- --- ------ ------ ------ ------
Total Managed Assets $362,905 $352,255 $351,626 $366,200 $376,084
-------------------- -------- -------- -------- -------- --------
AVERAGE MANAGED ASSETS Quarter Ended
-------------
(in millions) Dec. 31, 2014 Sept. 30, 2014 June 30, 2014 March 31, 2014 Dec. 31, 2013
------------ ------------- -------------- ------------- -------------- -------------
By Asset Class
--------------
Equity $50,901 $50,207 $47,466 $44,693 $42,539
Fixed-income 52,782 51,115 50,774 50,658 50,268
Money market 246,698 242,537 254,575 273,233 267,351
Liquidation portfolio(1) 1,563 5,307 5,569 5,791 6,050
----------------------- ----- ----- ----- ----- -----
Total Avg. Assets $351,944 $349,166 $358,384 $374,375 $366,208
----------------- -------- -------- -------- -------- --------
By Product Type
---------------
Funds:
Equity $32,705 $32,060 $30,154 $28,516 $27,157
Fixed-income 41,072 40,275 40,130 39,987 39,883
Money market 216,235 211,571 219,936 235,228 234,788
Total Avg. Fund Assets $290,012 $283,906 $290,220 $303,731 $301,828
---------------------- -------- -------- -------- -------- --------
Separate accounts:
Equity $18,196 $18,147 $17,312 $16,177 $15,382
Fixed-income 11,710 10,840 10,644 10,671 10,385
Money market 30,463 30,966 34,639 38,005 32,563
Total Avg. Separate Accounts $60,369 $59,953 $62,595 $64,853 $58,330
---------------------------- ------- ------- ------- ------- -------
Total Avg. Liquidation Portfolio(1) $1,563 $5,307 $5,569 $5,791 $6,050
---------------------------------- ------ ------ ------ ------ ------
Total Avg. Managed Assets $351,944 $349,166 $358,384 $374,375 $366,208
------------------------- -------- -------- -------- -------- --------
1) Liquidation portfolio represents a portfolio of distressed bonds at cost. Federated had been retained by a third party to manage these assets through an orderly liquidation process that was completed as of Nov. 6, 2014. Management-fee rates earned from this
portfolio were lower than those of traditional separate account mandates.
(unaudited)
----------
AVERAGE MANAGED
ASSETS Year Ended
----------
(in millions) Dec. 31, 2014 Dec. 31, 2013
------------ ------------- -------------
By Asset Class
--------------
Equity $48,317 $39,474
Fixed-income 51,333 51,340
Money market 254,260 273,680
Liquidation
portfolio(1) 4,557 6,633
------------- ----- -----
Total Avg. Assets $358,467 $371,127
----------------- -------- --------
By Product Type
---------------
Funds:
Equity $30,859 $25,512
Fixed-income 40,366 41,177
Money market 220,742 239,440
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Total Avg. Fund
Assets $291,967 $306,129
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Separate Accounts:
Equity $17,458 $13,962
Fixed-income 10,967 10,163
Money market 33,518 34,240
------------ ------ ------
Total Avg. Separate
Accounts $61,943 $58,365
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Total Avg.
Liquidation
Portfolio(1) $4,557 $6,633
------------- ------ ------
Total Avg. Managed
Assets $358,467 $371,127
------------------ -------- --------
1) Liquidation portfolio represents a portfolio of distressed bonds at cost. Federated had
been retained by a third party to manage these assets through an orderly liquidation
process that was completed as of Nov. 6, 2014. Management-fee rates earned from this
portfolio were lower than those of traditional separate account mandates.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/federated-investors-inc-reports-fourth-quarter-and-full-year-2014-earnings-300024590.html
SOURCE Federated Investors, Inc.
