PITTSBURGH, Oct. 25, 2018 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.59 for Q3 2018, compared to $0.56 for the same quarter last year on net income of $59.6 million for Q3 2018 compared to $56.4 million for Q3 2017.  Federated reported EPS of $1.57 for both YTD 2018 and 2017 on YTD 2018 net income of $158.8 million compared to $159.5 million of net income for the same period last year.  The results in this press release include the acquisition of Hermes Fund Managers Limited (Hermes), beginning July 1, 2018.

Federated's YTD 2018 results include a $27.2 million pre-tax net expense, representing $0.21 per diluted share net of tax, primarily from entering into two foreign exchange derivative instruments used to eliminate exposure to fluctuations in the British pound sterling in preparation for the Q3 2018 Hermes acquisition payment.  In addition, Federated has incurred $9.9 million and $12.7 million for Q3 2018 and YTD 2018, respectively, in transaction-related costs directly attributable to the Hermes acquisition.

Federated's total managed assets were a record $437.2 billion at Sept. 30, 2018 with the completion of the Hermes acquisition, up $73.5 billion or 20 percent from $363.7 billion at Sept. 30, 2017 and up $57.5 billion or 15 percent from $379.7 billion at June 30, 2018.  Total average managed assets for Q3 2018 were $433.9 billion, up $73.4 billion or 20 percent from $360.5 billion reported for Q3 2017 and up $47.9 billion or 12 percent from $386.0 billion reported for Q2 2018.

"Hermes incorporates environmental, social and governance factors into a wide range of actively managed strategies and stewardship services," said J. Christopher Donahue, president and chief executive officer.  "Hermes and Federated are off to an exciting and promising start together.  With demand for ESG investing on the rise, we look forward to Hermes' continued growth as we begin to offer Hermes' strategies to U.S. investors."

Federated's board of directors declared a dividend of $0.27 per share.  The dividend is payable on Nov. 15, 2018 to shareholders of record as of Nov. 8, 2018.  During Q3 2018, Federated purchased 276,982 shares of Federated class B common stock for $5.9 million.

Federated's equity assets were a record $84.1 billion at Sept. 30, 2018, primarily due to the inclusion of $25.7 billion of Hermes' assets.  Equity assets were up $22.4 billion or 36 percent from $61.7 billion at Sept. 30, 2017 and up $26.1 billion or 45 percent from $58.0 billion at June 30, 2018.  Top-selling equity funds during Q3 2018 on a net basis were Federated MDT Small Cap Core Fund, Federated Kaufmann Small Cap Fund, Federated MDT Small Cap Growth Fund, Federated MDT Mid Cap Growth Fund and Hermes SDG Engagement Equity Fund.

Federated's fixed-income assets were a record $65.4 billion at Sept. 30, 2018, primarily resulting from the inclusion of $2.8 billion of Hermes' assets.  Fixed-income assets were up $12.7 billion or 24 percent from $52.7 billion at Sept. 30, 2017 and up $4.0 billion or 7 percent from $61.4 billion at June 30, 2018.  Top-selling fixed-income funds during Q3 2018 on a net basis were Federated Ultrashort Bond Fund, Federated Institutional High Yield Bond Fund, Federated Short-Term Income Fund, Federated Floating Rate Strategic Income Fund and Federated Total Return Bond Fund.

Money market assets were $264.2 billion at Sept. 30, 2018, up $20.4 billion or 8 percent from $243.8 billion at Sept. 30, 2017 and up $9.0 billion or 4 percent from $255.2 billion at June 30, 2018.  Money market fund assets were $183.0 billion at Sept. 30, 2018, up $5.1 billion or 3 percent from $177.9 billion at Sept. 30, 2017 and up $10.3 billion or 6 percent from $172.7 billion at June 30, 2018.  Federated's money market separate account assets were $81.3 billion at Sept. 30, 2018, up $15.3 billion or 23 percent from $66.0 billion at Sept. 30, 2017 and down $1.3 billion or 2 percent from $82.6 billion at June 30, 2018.

Financial Summary

Q3 2018 vs. Q3 2017

Revenue increased $30.3 million or 11 percent primarily due to the consolidation of Hermes' revenue.  This increase was partially offset by a decrease in revenue due to the adoption of the new revenue recognition accounting standard and higher voluntary fee waivers for certain money market funds for competitive purposes.

During Q3 2018, Federated derived 66 percent of its revenue from long-term assets (45 percent from equity assets, 15 percent from fixed-income assets, and 6 percent from alternative/private markets and multi-asset), 33 percent from money market assets, and 1 percent from sources other than managed assets.

Operating expenses increased $37.1 million or 20 percent primarily due to the consolidation of Hermes' expenses.  This increase was partially offset by a decrease in distribution expense due to the adoption of the new revenue recognition accounting standard and a change in the mix of average money market fund assets.

Q3 2018 vs. Q2 2018

Revenue increased $52.6 million or 21 percent and operating expenses increased $51.5 million or 29 percent primarily due to the consolidation of Hermes.

Nonoperating income (expenses), net increased $30.9 million primarily due to a loss recorded in Q2 2018 from two foreign currency forward derivative instruments entered into in connection with the Hermes acquisition (FX Forward Loss).

YTD 2018 vs. YTD 2017

Revenue increased $3.8 million primarily due to the consolidation of Hermes revenue.  This increase was significantly offset by a decrease in revenue due to the adoption of the new revenue recognition accounting standard, a change in the mix of average money market assets and a previously disclosed Q1 2017 change in a customer relationship.

For the first nine months of 2018, Federated derived 63 percent of its revenue from long-term assets (42 percent from equity assets, 16 percent from fixed-income assets, and 5 percent from alternative/private markets and multi-asset), and 37 percent from money market assets.

Operating expenses increased by $12.2 million or 2 percent primarily due to the consolidation of Hermes' expenses.  This increase was partially offset by a decrease in expense due to the adoption of the new revenue recognition accounting standard and a change in the mix of average money market fund assets.

Nonoperating (expenses) income, net decreased $36.1 million due primarily to the FX Forward Loss.  In addition, investment income, net decreased due to a decrease in the market value of investments, primarily from securities held by consolidated investment companies, and fewer gains realized from the redemption of investments in the nine-month period ended Sept. 30, 2018 as compared to the same period in 2017.

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 and mix, product sales and redemptions, market appreciation or depreciation, revenues, currency fluctuations, fee waivers, acquisitions, 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).

Federated will host an earnings conference call at 9 a.m. Eastern on Oct. 26, 2018.  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 online in real time via the About Federated section of FederatedInvestors.com.  A replay will be available from approximately 12:30 p.m. Eastern Oct. 26, 2018 until Nov. 2, 2018 by calling 877-481-4010 (domestic) or 919-882-2331 (international) and entering access code 37820. An online replay will be available via FederatedInvestors.com for one year.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $437.2 billion in assets as of Sept. 30, 2018.  With 129 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 9,600 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.  Federated ranks in the top 6 percent of equity fund managers in the industry, the top 8 percent of money market fund managers and the top 11 percent of fixed-income fund managers1. Federated also ranks as the seventh-largest separately managed accounts manager2.  Information regarding Hermes is available at Hermes-Investment.comAn analyst presentation that includes information about Hermes also is availableFor more information, visitFederatedInvestors.com.

###

1) Strategic Insight, Sept. 30, 2018.  Based on assets under management in open-end funds.
2) Money Management Institute/Dover Financial Research, Q2 2018.
Federated Securities Corp. is distributor of the Federated funds.
Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Investment Management Limited and Hermes European Equities Limited, each a registered investment adviser.

Certain statements in this press release, such as those related to growth expectations, anticipated product or strategy offerings, the level of fee waivers and expenses incurred by the company, performance, investor preferences and demand, asset flows and mix, customer relationships, acquisitions, integration and expenses 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 anticipate when products or strategies will be ready to be offered, predict the level of fee waivers and expenses in future quarters, sustain product demand, and asset flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior.  Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the SEC.  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
Q3 2017 to
Q3 2018


Quarter Ended

% Change
Q2 2018 to
Q3 2018


Sept. 30, 2018

Sept. 30, 2017


June 30, 2018

Revenue







Investment advisory fees, net

$

217,036


$

184,886


17

%


$

168,127


29

%

Administrative service fees, net—affiliates

49,855


47,461


5



48,370


3


Other service fees, net

41,725


45,968


(9)



39,496


6


Total Revenue

308,616


278,315


11



255,993


21









Operating Expenses







Compensation and related

103,092


72,454


42



74,147


39


Distribution

72,153


84,838


(15)



69,446


4


Professional service fees

13,535


6,948


95



9,278


46


Systems and communications

12,213


7,992


53



7,751


58


Office and occupancy

9,332


7,293


28



7,365


27


Travel and related

4,622


3,258


42



3,523


31


Advertising and promotional

4,502


2,345


92



3,237


39


Other

7,269


4,497


62



489


NM


Total Operating Expenses

226,718


189,625


20



175,236


29


Operating Income

81,898


88,690


(8)



80,757


1









Nonoperating Income (Expenses)







Investment income, net

1,199


3,556


(66)



1,377


(13)


Debt expense

(1,602)


(1,250)


28



(1,431)


12


Other, net

2,240


1


NM


(28,974)


(108)


Total Nonoperating Income (Expenses), net

1,837


2,307


(20)



(29,028)


(106)


Income before income taxes

83,735


90,997


(8)



51,729


62


Income tax provision1

21,741


33,756


(36)



13,062


66


Net income including the noncontrolling interests in subsidiaries

61,994


57,241


8



38,667


60


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

2,386


802


198



(155)


NM


Net Income

$

59,608


$

56,439


6

%


$

38,822


54

%








Amounts Attributable to Federated Investors, Inc.







Earnings Per Share2







Basic and diluted

$

0.59


$

0.56


5

%


$

0.38


55

%

Weighted-average shares outstanding







Basic

96,664


97,128




97,193



Diluted

96,664


97,129




97,194



Dividends declared per share

$

0.27


$

0.25




$

0.27





1)

Sept. 30, 2018 and June 30, 2018 reflect a lower effective tax rate primarily due to the enactment of the Tax Cuts and Jobs Act of 2017 (Tax Act).

2)

Unvested share-based 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 $2.8 million, $2.2 million and $1.5 million available to unvested restricted Federated shareholders and, to a lesser extent, unvested shareholders of a nonpublic consolidated subsidiary for the quarterly periods ended Sept. 30, 2018, Sept. 30, 2017 and June 30, 2018, respectively, was excluded from the computation of earnings per share.

 

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)





Nine Months Ended



Sept. 30, 2018

Sept. 30, 2017

% Change

Revenue




Investment advisory fees, net

$

559,429


$

545,525


3

%

Administrative service fees, net—affiliates

147,248


139,763


5


Other service fees, net

121,784


139,324


(13)


Total Revenue

828,461


824,612


0






Operating Expenses




Compensation and related

255,613


217,226


18


Distribution

214,098


262,371


(18)


Professional service fees

32,443


20,141


61


Systems and communications

28,397


24,258


17


Office and occupancy

24,238


21,805


11


Advertising and promotional

10,967


8,396


31


Travel and related

10,967


9,150


20


Other

9,412


10,591


(11)


Total Operating Expenses

586,135


573,938


2


Operating Income

242,326


250,674


(3)






Nonoperating (Expenses) Income




Investment income, net

3,294


11,707


(72)


Debt expense

(4,363)


(3,534)


23


Other, net

(26,877)


(32)


NM

Total Nonoperating (Expenses) Income, net

(27,946)


8,141


(443)


Income before income taxes

214,380


258,815


(17)


Income tax provision1

53,713


95,888


(44)


Net income including the noncontrolling interests in subsidiaries

160,667


162,927


(1)


Less: Net income attributable to the noncontrolling interests in subsidiaries

1,906


3,396


(44)


Net Income

$

158,761


$

159,531


0

%





Amounts Attributable to Federated Investors, Inc.




Earnings Per Share2




Basic and diluted

$

1.57


$

1.57


0

%

Weighted-average shares outstanding




Basic

97,013


97,521



Diluted

97,014


97,522



Dividends declared per share

$

0.79


$

0.75





1)

Sept. 30, 2018 reflects a lower effective tax rate primarily due to the enactment of the Tax Act.

2)

Unvested share-based 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 $6.7 million and $6.3 million available to unvested restricted Federated shareholders and, to a lesser extent, unvested shareholders of a nonpublic consolidated subsidiary for the nine months ended Sept. 30, 2018 and Sept. 30, 2017, respectively, was excluded from the computation of earnings per share.

 

Unaudited Condensed Consolidated Balance Sheets



(in thousands)

Sept. 30, 2018

Dec. 31, 2017

Assets



  Cash and other investments

$

157,059


$

369,538


  Other current assets

114,563


67,736


  Intangible assets, net, including goodwill

1,160,824


736,915


  Other long-term assets

91,211


57,221


  Total Assets

$

1,523,657


$

1,231,410





Liabilities, Redeemable Noncontrolling Interests and Equity



  Current liabilities

$

164,301


$

128,849


  Long-term debt

160,000


170,000


  Other long-term liabilities

179,248


141,183


  Redeemable noncontrolling interests

192,744


30,163


  Equity excluding treasury stock

1,121,518


1,039,947


  Treasury stock

(294,154)


(278,732)


  Total Liabilities, Redeemable Noncontrolling Interests and Equity

$

1,523,657


$

1,231,410


 

Unaudited Changes in Long-Term Assets - By Asset Class

(in millions)

Quarter Ended


Nine Months Ended


Sept. 30, 2018

June 30, 2018

Sept. 30, 2017


Sept. 30, 2018

Sept. 30, 2017

Equity







Beginning assets

$

57,973


$

58,830


$

60,404



$

62,816


$

56,759


Sales1

3,757


2,731


2,570



9,681


9,131


Redemptions1

(5,288)


(5,078)


(3,078)



(15,624)


(11,586)


Net redemptions1

(1,531)


(2,347)


(508)



(5,943)


(2,455)


Net exchanges

(11)


202


(52)



64


(53)


Acquisition-related

24,700


0


0



24,700


287


Market gains and losses2

3,012


1,288


1,877



2,506


7,183


Ending assets

$

84,143


$

57,973


$

61,721



$

84,143


$

61,721









Fixed Income







Beginning assets

$

61,435


$

62,205


$

52,436



$

64,160


$

51,314


Sales1

5,163


4,755


3,587



14,826


11,778


Redemptions1

(4,418)


(4,934)


(3,897)



(15,946)


(12,415)


Net sales (redemptions)1

745


(179)


(310)



(1,120)


(637)


Net exchanges

2


(207)


53



(78)


(73)


Acquisition-related

2,732


0


0



2,732


148


Market gains and losses2

455


(384)


522



(325)


1,949


Ending assets

$

65,369


$

61,435


$

52,701



$

65,369


$

52,701









Alternative / Private Markets







Beginning assets

$

292


$

343


$

443



$

366


$

458


Sales1

757


15


22



813


94


Redemptions1

(674)


(44)


(49)



(785)


(177)


Net sales (redemptions)1

83


(29)


(27)



28


(83)


Net exchanges

(2)


(2)


1



(3)


58


Acquisition-related3

18,509


0


0



18,509


0


Market gains and losses2

(261)


(20)


(10)



(279)


(26)


Ending assets

$

18,621


$

292


$

407



$

18,621


$

407









Multi-asset







Beginning assets

$

4,730


$

4,843


$

5,011



$

5,014


$

5,164


Sales1

120


126


110



374


371


Redemptions1

(211)


(229)


(274)



(675)


(909)


Net redemptions1

(91)


(103)


(164)



(301)


(538)


Net exchanges

4


(2)


(8)



2


(21)


Acquisition-related

45


0


0



45


0


Market gains and losses2

102


(8)


159



30


393


Ending assets

$

4,790


$

4,730


$

4,998



$

4,790


$

4,998









Total Long-term Assets







Beginning assets

$

124,430


$

126,221


$

118,294



$

132,356


$

113,695


Sales1

9,797


7,627


6,289



25,694


21,374


Redemptions1

(10,591)


(10,285)


(7,298)



(33,030)


(25,087)


Net redemptions1

(794)


(2,658)


(1,009)



(7,336)


(3,713)


Net exchanges

(7)


(9)


(6)



(15)


(89)


Acquisition-related3

45,986


0


0



45,986


435


Market gains and losses2

3,308


876


2,548



1,932


9,499


Ending assets

$

172,923


$

124,430


$

119,827



$

172,923


$

119,827




1)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates.

3)

Acquisition-related includes $8.4 billion of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.

 

Unaudited Changes in Long-Term Assets - By Asset Class and Product Type

(in millions)

 



Quarter Ended


Sept. 30, 2018


Equity

Fixed Income

Alternative / Private
Markets

Multi-asset

Total


Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds2

Separate
Accounts1

Funds

Separate
Accounts1

Funds2

Separate
Accounts1

Beginning assets

$

31,699


$

26,274


$

39,877


$

21,558


$

292


$

0


$

4,521


$

209


$

76,389


$

48,041


Sales

2,447


1,310


3,878


1,285


723


34


120


0


7,168


2,629


Redemptions

(3,047)


(2,241)


(3,883)


(535)


(270)


(404)


(205)


(6)


(7,405)


(3,186)


Net (redemptions) sales

(600)


(931)


(5)


750


453


(370)


(85)


(6)


(237)


(557)


Net exchanges

(9)


(2)


3


(1)


(2)


0


4


0


(4)


(3)


Acquisition-related

11,131


13,569


1,565


1,167


10,823


7,686


45


0


23,564


22,422


Market gains and losses3

1,357


1,655


377


78


(109)


(152)


100


2


1,725


1,583


Ending assets

$

43,578


$

40,565


$

41,817


$

23,552


$

11,457


$

7,164


$

4,585


$

205


$

101,437


$

71,486














Nine Months Ended


Sept. 30, 2018


Equity

Fixed Income

Alternative / Private
Markets

Multi-asset

Total


Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds2

Separate
Accounts1

Funds

Separate
Accounts1

Funds2

Separate
Accounts1

Beginning assets

$

33,008


$

29,808


$

41,144


$

23,016


$

366


$

0


$

4,783


$

231


$

79,301


$

53,055


Sales

5,763


3,918


11,817


3,009


779


34


374


0


18,733


6,961


Redemptions

(8,283)


(7,341)


(12,668)


(3,278)


(381)


(404)


(654)


(21)


(21,986)


(11,044)


Net (redemptions) sales

(2,520)


(3,423)


(851)


(269)


398


(370)


(280)


(21)


(3,253)


(4,083)


Net exchanges

65


(1)


(77)


(1)


(3)


0


2


0


(13)


(2)


Acquisition-related

11,131


13,569


1,565


1,167


10,823


7,686


45


0


23,564


22,422


Market gains and losses3

1,894


612


36


(361)


(127)


(152)


35


(5)


1,838


94


Ending assets

$

43,578


$

40,565


$

41,817


$

23,552


$

11,457


$

7,164


$

4,585


$

205


$

101,437


$

71,486




1)

Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products.  For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2)

Acquisition-related includes $8.4 billion of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.

3)

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.

 

Unaudited Changes in Long-Term Assets - By Product Type

(in millions)

 

Quarter Ended


Nine Months Ended


Sept. 30, 2018

June 30, 2018

Sept. 30, 2017


Sept. 30, 2018

Sept. 30, 2017

Total Fund Assets







Beginning assets

$

76,389


$

76,999


$

78,105



$

79,301


$

75,665


Sales

7,168


5,609


4,699



18,733


15,529


Redemptions

(7,405)


(6,947)


(5,566)



(21,986)


(18,430)


Net redemptions

(237)


(1,338)


(867)



(3,253)


(2,901)


Net exchanges

(4)


(7)


(6)



(13)


(33)


Acquisition-related1

23,564


0


0



23,564


435


Market gains and losses2

1,725


735


1,723



1,838


5,789


Ending assets

$

101,437


$

76,389


$

78,955



$

101,437


$

78,955









Total Separate Accounts Assets3







Beginning assets

$

48,041


$

49,222


$

40,189



$

53,055


$

38,030


Sales4

2,629


2,018


1,590



6,961


5,845


Redemptions4

(3,186)


(3,338)


(1,732)



(11,044)


(6,657)


Net redemptions4

(557)


(1,320)


(142)



(4,083)


(812)


Net exchanges

(3)


(2)


0



(2)


(56)


Acquisition-related

22,422


0


0



22,422


0


Market gains and losses2

1,583


141


825



94


3,710


Ending assets

$

71,486


$

48,041


$

40,872



$

71,486


$

40,872









Total Long-term Assets3







Beginning assets

$

124,430


$

126,221


$

118,294



$

132,356


$

113,695


Sales4

9,797


7,627


6,289



25,694


21,374


Redemptions4

(10,591)


(10,285)


(7,298)



(33,030)


(25,087)


Net redemptions4

(794)


(2,658)


(1,009)



(7,336)


(3,713)


Net exchanges

(7)


(9)


(6)



(15)


(89)


Acquisition-related1

45,986


0


0



45,986


435


Market gains and losses2

3,308


876


2,548



1,932


9,499


Ending assets

$

172,923


$

124,430


$

119,827



$

172,923


$

119,827




1)

Acquisition-related includes $8.4 billion of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.

2)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates.

3)

Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products.

4)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

 

Unaudited Managed Assets

(in millions)

Sept. 30, 2018

June 30, 2018

March 31, 2018

Dec. 31, 2017

Sept. 30, 2017

By Asset Class






Equity

$

84,143


$

57,973


$

58,830


$

62,816


$

61,721


Fixed-income

65,369


61,435


62,205


64,160


52,701


Alternative / private markets1

18,621


292


343


366


407


Multi-asset

4,790


4,730


4,843


5,014


4,998


Total long-term assets

172,923


124,430


126,221


132,356


119,827


Money market

264,233


255,247


265,944


265,214


243,840


Total Managed Assets

$

437,156


$

379,677


$

392,165


$

397,570


$

363,667








By Product Type






Funds:






Equity

$

43,578


$

31,699


$

31,507


$

33,008


$

32,637


Fixed-income

41,817


39,877


40,529


41,144


41,142


Alternative / private markets1

11,457


292


343


366


407


Multi-asset

4,585


4,521


4,620


4,783


4,769


Total long-term assets

101,437


76,389


76,999


79,301


78,955


Money market

182,966


172,671


182,437


185,536


177,865


Total Fund Assets

$

284,403


$

249,060


$

259,436


$

264,837


$

256,820


Separate Accounts:






Equity

$

40,565


$

26,274


$

27,323


$

29,808


$

29,084


Fixed-income

23,552


21,558


21,676


23,016


11,559


Alternative / private markets

7,164


0


0


0


0


Multi-asset

205


209


223


231


229


Total long-term assets

71,486


48,041


49,222


53,055


40,872


Money market

81,267


82,576


83,507


79,678


65,975


Total Separate Account Assets

$

152,753


$

130,617


$

132,729


$

132,733


$

106,847


Total Managed Assets

$

437,156


$

379,677


$

392,165


$

397,570


$

363,667




1)

Alternative/private markets at Sept. 30, 2018 includes $8.4 billion of fund assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.

 

Unaudited Average Managed Assets

Quarter Ended

(in millions)

Sept. 30, 2018

June 30, 2018

March 31, 2018

Dec. 31, 2017

Sept. 30, 2017

By Asset Class






Equity

$

84,262


$

58,818


$

61,555


$

62,140


$

60,782


Fixed-income

64,750


61,648


63,538


64,280


52,559


Alternative / private markets1

18,504


319


355


397


425


Multi-asset

4,805


4,824


4,979


5,000


4,992


Total long-term assets

172,321


125,609


130,427


131,817


118,758


Money market

261,571


260,371


267,546


250,197


241,749


Total Avg. Managed Assets

$

433,892


$

385,980


$

397,973


$

382,014


$

360,507








By Product Type






Funds:






Equity

$

43,473


$

31,911


$

32,680


$

32,829


$

32,179


Fixed-income

41,501


40,199


41,022


41,169


40,896


Alternative / private markets1

11,109


319


355


397


425


Multi-asset

4,598


4,604


4,749


4,771


4,768


Total long-term assets

100,681


77,033


78,806


79,166


78,268


Money market

179,562


175,885


181,856


176,918


174,358


Total Avg. Fund Assets

$

280,243


$

252,918


$

260,662


$

256,084


$

252,626


Separate Accounts:






Equity

$

40,789


$

26,907


$

28,875


$

29,311


$

28,603


Fixed-income

23,249


21,449


22,516


23,111


11,663


Alternative / private markets

7,395


0


0


0


0


Multi-asset

207


220


230


229


224


Total long-term assets

71,640


48,576


51,621


52,651


40,490


Money market

82,009


84,486


85,690


73,279


67,391


Total Avg. Separate Account Assets

$

153,649


$

133,062


$

137,311


$

125,930


$

107,881


Total Avg. Managed Assets

$

433,892


$

385,980


$

397,973


$

382,014


$

360,507




1)

Alternative/private markets for the quarter ended Sept. 30, 2018 includes $8.2 billion of fund assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.

 

Unaudited Average Managed Assets


Nine Months Ended

(in millions)


Sept. 30, 2018


Sept. 30, 2017

By Asset Class





Equity


$

68,212



$

59,627


Fixed-income


63,312



52,178


Alternative / private markets1


6,393



456


Multi-asset


4,869



5,083


Total long-term assets


142,786



117,344


Money market


263,162



243,879


Total Avg. Managed Assets


$

405,948



$

361,223







By Product Type





Funds:





Equity


$

36,022



$

31,938


Fixed-income


40,907



40,511


Alternative / private markets1


3,928



456


Multi-asset


4,650



4,864


Total long-term assets


85,507



77,769


Money market


179,100



176,467


Total Avg. Fund Assets


$

264,607



$

254,236


Separate Accounts:





Equity


$

32,190



$

27,689


Fixed-income


22,405



11,667


Alternative / private markets


2,465



0


Multi-asset


219



219


Total long-term assets


57,279



39,575


Money market


84,062



67,412


Total Avg. Separate Account Assets


$

141,341



$

106,987


Total Avg. Managed Assets


$

405,948



$

361,223




1)

Alternative/Private Markets for the nine months ended Sept. 30, 2018 includes
$2.7 billion of fund assets managed by a nonconsolidated entity, Hermes GPE LLP,
in which Hermes holds an equity method investment.

 

Cision View original content:http://www.prnewswire.com/news-releases/federated-investors-inc-reports-third-quarter-2018-earnings-300738265.html

SOURCE Federated Investors, Inc.