Federated Investors, Inc. Reports Third Quarter 2018 Earnings

Federated Investors, Inc. Reports Third Quarter 2018 Earnings

- Q3 2018 EPS of $0.59 up 5 percent from $0.56 in Q3 2017

- Managed assets reach a record $437 billion with completion of Hermes acquisition

- Board declares $0.27 per share quarterly dividend

PR Newswire

PITTSBURGH, Oct. 25, 2018 /PRNewswire/ -- Federated Investors, Inc. 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, visit FederatedInvestors.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.

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