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8-K - FORM 8-K - FEDERATED HERMES, INC. | d8k.htm |
Exhibit 99.1
Federated Investors, Inc. Reports Fourth Quarter and Year-End 2010 Earnings
| Equity and fixed-income assets surpass $82 billion at year end |
| Fixed-income fund and separate account assets increase by $7 billion during 2010 |
| Average money market assets increase $4 billion during Q4 2010 |
(PITTSBURGH, Pa., Jan. 27, 2011) Federated Investors, Inc. (NYSE: FII), one of the nations largest investment managers, today reported earnings per diluted share (EPS) of $0.45 for the quarter ended Dec. 31, 2010 compared to $0.42 for the prior quarter and $0.51 for the same quarter last year. Net income was $46.4 million for Q4 2010 compared to $43.1 million for the prior quarter and $51.9 million for Q4 2009. During Q4 2010, Federated recorded a non-cash impairment charge of $3.2 million or $0.02 per diluted share after tax related to intangible assets associated with a prior-year acquisition.
For the year ended Dec. 31, 2010, Federated reported EPS of $1.73 compared to $1.92 for 2009. For 2010, net income was $179.1 million compared to $197.3 million for 2009.
Federateds total managed assets were $358.2 billion at Dec. 31, 2010, up $16.9 billion or 5 percent from $341.3 billion reported at Sept. 30, 2010 and down $31.1 billion or 8 percent from $389.3 billion at Dec. 31, 2009. Average managed assets for Q4 2010 were $345.7 billion, up $7.1 billion or 2 percent from $338.6 billion reported for Q3 2010 and down $42.4 billion or 11 percent from $388.1 billion reported for Q4 2009.
Through challenging equity and fixed income markets in 2007 and 2008, Federateds money market assets increased by $182 billion. As markets recovered in 2009 and 2010, Federateds money market products experienced $80 billion in net outflows, reflecting industry-wide trends. At the same time, Federated acquired $17 billion in assets from other money-market providers. Federateds money market assets have increased a total of $102.4 billion since the end of 2006 to $276.0 billion at Dec. 31, 2010.
In the last year, the strategic balance of Federateds diverse product line again benefited our clients and shareholders, said J. Christopher Donahue, president and chief executive officer. In addition to bond asset growth, strong interest in the Federated Strategic Value Dividend Fund contributed to Federateds equity asset increase during the year as investors moved to classic dividend-paying stocks as a source of income.
Federateds board of directors declared a quarterly dividend of $0.24 per share. The dividend is payable on Feb. 15, 2011 to shareholders of record as of Feb. 8, 2011. Over the last three years, Federated has paid $703 million or $6.87 per share in dividends reflecting the companys success and profitability over challenging and changing market conditions. During Q4 2010, Federated purchased 222,226 shares of Federated class B common stock for $5.0 million. In 2010, the company purchased 659,675 shares of Federated class B common stock for $14.2 million.
MEDIA: | MEDIA: | ANALYSTS: | ||
Meghan McAndrew 412-288-8103 | J.T. Tuskan 412-288-7895 | Ray Hanley 412-288-1920 |
Federated Reports Q4 and Year-End 2010 Earnings | Page 2 of 10 |
Federateds fixed-income assets were $40.7 billion at Dec. 31, 2010, up $6.9 billion or 20 percent from $33.8 billion at Dec. 31, 2009 and up $0.5 billion from $40.2 billion at Sept. 30, 2010. During 2010, Federateds fixed-income separate account assets increased by 63 percent to $8.8 billion. Fixed-income assets in liquidation portfolios were $10.7 billion at Dec. 31, 2010. Net bond fund sales for the quarter were driven by strong flows into Federated Total Return Bond Fund, a multi-sector product; flows into several short-duration funds; and flows into Federated Institutional High Yield Bond Fund and Federated Strategic Income Fund.
Federateds equity assets were $30.8 billion at Dec. 31, 2010, up $1.1 billion or 4 percent from $29.7 billion on Dec. 31, 2009 and up $1.7 billion or 6 percent from $29.1 billion at Sept. 30, 2010. Net sales for the quarter were led by Federated Strategic Value Dividend Fund, Federated Max-Cap Index Fund, Federated Kaufmann Large Cap Fund, Federated Clover Small Value Fund and Federated International Strategic Value Dividend Fund.
Money market assets in both funds and separate accounts were $276.0 billion at Dec. 31, 2010, down $37.3 billion or 12 percent from $313.3 billion at Dec. 31, 2009 and up $15.1 billion or 6 percent from $260.9 billion at Sept. 30, 2010. Money market mutual fund assets were $244.8 billion at Dec. 31, 2010, down $36.8 billion or 13 percent from $281.6 billion at Dec. 31, 2009 and up $11.2 billion or 5 percent from $233.6 billion at Sept. 30, 2010. Assets at Dec. 31, 2010 included $14.1 billion acquired from SunTrust Banks, Inc.s products during Q3 and Q4 2010.
Financial Summary
Q4 2010 vs. Q4 2009
For Q4 2010, revenue decreased by $19.5 million or 7 percent from the same quarter last year. The decrease in revenue primarily reflects a decrease resulting from lower average money market assets. This decrease was partially offset by the impact of increased average fixed-income and equity assets. As detailed at the end of this financial summary, voluntary fee waivers related to certain money market funds in order to maintain positive or zero net yields increased during Q4 2010 compared to Q4 2009.
In Q4 2010, Federated derived 50 percent of its revenue from money market assets, 49 percent from fluctuating assets (31 percent from equity assets and 18 percent from fixed-income assets) and 1 percent from other products and services.
Operating expenses for Q4 2010 were $166.3 million compared to $178.4 million for Q4 2009. This decrease of $12.1 million was primarily a result of lower distribution expenses due to lower average money market assets and higher fee-waiver-related reductions.
Q4 2010 vs. Q3 2010
Compared to the prior quarter, revenue increased by $3.1 million or 1 percent. The increase in revenue reflects higher average equity, money market and fixed-income assets. Voluntary fee waivers related to certain money market funds in order to maintain positive or zero net yields increased during Q4 2010 compared to Q3 2010 (see table).
Federated Reports Q4 and Year-End 2010 Earnings | Page 3 of 10 |
Operating expenses for Q4 2010 decreased by $0.8 million compared to Q3 2010.
2010 vs. 2009
Revenue for 2010 decreased by $224.1 million or 19 percent compared to the prior year. The decrease in revenue primarily reflects a decrease resulting from lower average money market assets. This decrease was partially offset by the impact of increased average fixed-income and equity assets. Voluntary fee waivers related to certain money market funds in order to maintain positive or zero net yields increased for 2010 compared to 2009 (see table).
In 2010, Federated derived 50 percent of its revenue from money market assets, 49 percent from fluctuating assets (31 percent from equity assets and 18 percent from fixed-income assets) and 1 percent from other products and services.
Operating expenses for 2010 decreased by $204.5 million or 24 percent compared to last year. The decrease primarily reflects lower distribution expenses from the aforementioned fee waivers and lower average money market assets. Also contributing to the decrease in operating expenses was the recognition of insurance proceeds in Q2 2010.
Nonoperating expenses increased $6.3 million for 2010 compared to 2009 primarily due to an increase in recourse debt expense associated with the companys term loan, which was amended and restated in Q2 2010. This increase was partially offset by higher investment income.
Federateds level of business activity and financial results are dependent upon many factors including market conditions, investment performance and investor behavior. These factors and others including asset levels, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers and expenses can impact Federateds activity levels and financial results significantly. Risk factors and uncertainties that can influence Federateds financial results are discussed in the companys annual and quarterly reports as filed with the Securities and Exchange Commission.
Fee waivers to produce positive or zero net yields could vary significantly based on market conditions. The amount of these waivers will be determined by a variety of factors including, but not limited to, available yields on instruments held by the money market funds, changes in assets within money market funds, actions by the Federal Reserve and the U.S. Department of the Treasury, changes in the mix of money market customer assets, changes in expenses of the money market funds and Federateds willingness to continue these waivers.
Money Market Fund Yield Waiver Impact
(in millions)
Quarter Ended | Change Q4 2009 to Q4 2010 |
Quarter ended Sept. 30, 20101 |
Change Q3 2010 to Q4 2010 |
Year Ended | Change 2009 to 2010 |
|||||||||||||||||||||||||||
(Decrease)/Increase |
Dec. 31, 2010 |
Dec. 31, 2009 |
Dec. 31, 2010 |
Dec. 31, 2009 |
||||||||||||||||||||||||||||
Revenue |
$ | (60.0 | ) | $ | (57.5 | ) | $ | (2.5 | ) | $ | (53.8 | ) | $ | (6.2 | ) | $ | (241.6 | ) | $ | (120.6 | ) | $ | (121.0 | ) | ||||||||
Distribution expense |
(47.7 | ) | (42.6 | ) | (5.1 | ) | (42.6 | ) | (5.1 | ) | (186.6 | ) | (86.4 | ) | (100.2 | ) | ||||||||||||||||
Operating Income |
$ | (12.3 | ) | $ | (14.9 | ) | $ | 2.6 | $ | (11.2 | ) | $ | (1.1 | ) | $ | (55.0 | ) | $ | (34.2 | ) | $ | (20.8 | ) | |||||||||
1) | Reflects income statement reclassifications. |
Federated Reports Q4 and Year-End 2010 Earnings | Page 4 of 10 |
Federated will host an earnings conference call at 9 a.m. Eastern on Friday, Jan. 28, 2011. Investors are invited to listen to Federateds 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 Us section of FederatedInvestors.com. A replay will be available after 12:30 p.m. and through Feb. 4, 2011 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 364860.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $358.2 billion in assets as of Dec. 31, 2010. With 136 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 5,000 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top 2 percent of money market fund managers in the industry, the top 7 percent of fixed-income fund managers and the top 7 percent of equity fund managers1. For more information, visit FederatedInvestors.com.
###
1 | Strategic Insight, Nov. 30, 2010. Based on assets under management in open-end funds. |
Federated Securities Corp. is distributor of the Federated funds.
Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling and Federated MDTA LLC, each a registered investment advisor.
Certain statements in this press release, such as those related to the level of fee waivers incurred by the company, product demand and asset flows, constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the ability of the company to predict the level of fee waivers in future quarters, which could vary significantly depending on a variety of factors identified above, and include the ability of the company to sustain product demand and asset flows, which could vary significantly depending on market conditions, investment performance and investor behavior. Other risks and uncertainties also include the risk factors discussed in the companys 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.
Federated Reports Q4 and Year-End 2010 Earnings | Page 5 of 10 |
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Quarter Ended Dec. 31, | % Change Q4 2009 to |
Quarter Sept. 30, |
% Change Q3 2010 to |
|||||||||||||||||
2010 | 2009 | Q4 2010 | 2010 | Q4 2010 | ||||||||||||||||
Revenue |
||||||||||||||||||||
Investment advisory fees, net |
$ | 165,174 | $ | 175,586 | (6 | )% | $ | 163,783 | 1 | % | ||||||||||
Administrative service fees, net |
54,410 | 61,884 | (12 | ) | 53,085 | 2 | ||||||||||||||
Other service fees, net |
25,054 | 26,124 | (4 | ) | 24,645 | 2 | ||||||||||||||
Other, net |
679 | 1,216 | (44 | ) | 660 | 3 | ||||||||||||||
Total Revenue |
245,317 | 264,810 | (7 | ) | 242,173 | 1 | ||||||||||||||
Operating Expenses |
||||||||||||||||||||
Compensation and related |
56,384 | 62,359 | (10 | ) | 61,387 | (8 | ) | |||||||||||||
General and administrative |
||||||||||||||||||||
Distribution |
69,141 | 76,718 | (10 | ) | 68,800 | 0 | ||||||||||||||
Professional service fees |
9,385 | 8,260 | 14 | 9,401 | (0 | ) | ||||||||||||||
Office and occupancy |
5,968 | 6,194 | (4 | ) | 5,841 | 2 | ||||||||||||||
Systems and communications |
5,831 | 5,599 | 4 | 5,362 | 9 | |||||||||||||||
Travel and related |
3,456 | 3,743 | (8 | ) | 2,692 | 28 | ||||||||||||||
Advertising and promotional |
2,630 | 2,847 | (8 | ) | 2,724 | (3 | ) | |||||||||||||
Other |
4,577 | 5,274 | (13 | ) | 4,494 | 2 | ||||||||||||||
Total general and administrative |
100,988 | 108,635 | (7 | ) | 99,314 | 2 | ||||||||||||||
Intangible asset impairment and amortization |
5,989 | 3,909 | 53 | 3,397 | 76 | |||||||||||||||
Amortization of deferred sales commissions |
2,924 | 3,526 | (17 | ) | 2,987 | (2 | ) | |||||||||||||
Total Operating Expenses |
166,285 | 178,429 | (7 | ) | 167,085 | (0 | ) | |||||||||||||
Operating Income |
79,032 | 86,381 | (9 | ) | 75,088 | 5 | ||||||||||||||
Nonoperating Income (Expenses) |
||||||||||||||||||||
Investment income, net |
3,980 | 814 | 389 | 4,475 | (11 | ) | ||||||||||||||
Debt expenserecourse |
(4,853 | ) | (975 | ) | 398 | (4,958 | ) | (2 | ) | |||||||||||
Other, net |
(184 | ) | (212 | ) | (13 | ) | (65 | ) | 183 | |||||||||||
Total Nonoperating Expenses, net |
(1,057 | ) | (373 | ) | 183 | (548 | ) | 93 | ||||||||||||
Income before income taxes |
77,975 | 86,008 | (9 | ) | 74,540 | 5 | ||||||||||||||
Income tax provision |
29,344 | 31,308 | (6 | ) | 26,477 | 11 | ||||||||||||||
Net income including noncontrolling interests in subsidiaries |
48,631 | 54,700 | (11 | ) | 48,063 | 1 | ||||||||||||||
Less: Net income attributable to noncontrolling interests in subsidiaries |
2,230 | 2,803 | (20 | ) | 5,007 | (55 | ) | |||||||||||||
Net Income |
$ | 46,401 | $ | 51,897 | (11 | )% | $ | 43,056 | 8 | % | ||||||||||
Amounts Attributable to Federated Earnings Per Share1 |
||||||||||||||||||||
Basic and Diluted |
$ | 0.45 | $ | 0.51 | (12 | )% | $ | 0.42 | 7 | % | ||||||||||
Weighted-average shares outstanding |
||||||||||||||||||||
Basic |
99,976 | 99,763 | 99,916 | |||||||||||||||||
Diluted |
99,998 | 99,938 | 99,954 | |||||||||||||||||
Dividends declared per share |
$ | 0.24 | $ | 0.24 | $ | 0.24 | ||||||||||||||
1) | Unvested share-based payment awards that receive non-forfeitable dividend rights are considered participating securities and are required to be included in the computation of earnings per share under the two-class method. Total income available to participating restricted shareholders was $1.4 million, $1.4 million and $1.3 million for the quarterly periods ended Dec. 31, 2010, Dec. 31, 2009 and Sept. 30, 2010, respectively. |
Federated Reports Q4 and Year-End 2010 Earnings | Page 6 of 10 |
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Year Ended Dec. 31, | % Change | |||||||||||
2010 | 2009 | |||||||||||
Revenue |
||||||||||||
Investment advisory fees, net |
$ | 639,404 | $ | 749,823 | (15 | )% | ||||||
Administrative service fees, net |
215,643 | 261,610 | (18 | ) | ||||||||
Other service fees, net |
94,035 | 158,999 | (41 | ) | ||||||||
Other, net |
2,861 | 5,518 | (48 | ) | ||||||||
Total Revenue |
951,943 | 1,175,950 | (19 | ) | ||||||||
Operating Expenses |
||||||||||||
Compensation and related |
242,853 | 254,428 | (5 | ) | ||||||||
General and administrative |
||||||||||||
Distribution |
259,210 | 410,019 | (37 | ) | ||||||||
Office and occupancy |
22,958 | 24,509 | (6 | ) | ||||||||
Systems and communications |
22,828 | 23,470 | (3 | ) | ||||||||
Professional service fees |
18,980 | 38,133 | (50 | ) | ||||||||
Travel and related |
11,461 | 11,374 | 1 | |||||||||
Advertising and promotional |
10,110 | 11,085 | (9 | ) | ||||||||
Other |
19,044 | 22,669 | (16 | ) | ||||||||
Total general and administrative |
364,591 | 541,259 | (33 | ) | ||||||||
Intangible asset impairment and amortization |
22,511 | 32,574 | (31 | ) | ||||||||
Amortization of deferred sales commissions |
12,197 | 18,462 | (34 | ) | ||||||||
Total Operating Expenses |
642,152 | 846,723 | (24 | ) | ||||||||
Operating Income |
309,791 | 329,227 | (6 | ) | ||||||||
Nonoperating Income (Expenses) |
||||||||||||
Investment income, net |
6,872 | 3,308 | 108 | |||||||||
Debt expenserecourse |
(15,049 | ) | (4,345 | ) | 246 | |||||||
Other, net |
(494 | ) | (1,372 | ) | (64 | ) | ||||||
Total Nonoperating Expenses, net |
(8,671 | ) | (2,409 | ) | 260 | |||||||
Income before income taxes |
301,120 | 326,818 | (8 | ) | ||||||||
Income tax provision |
111,957 | 118,278 | (5 | ) | ||||||||
Net income including noncontrolling interests in subsidiaries |
189,163 | 208,540 | (9 | ) | ||||||||
Less: Net income attributable to noncontrolling interests in subsidiaries |
10,049 | 11,248 | (11 | ) | ||||||||
Net Income |
$ | 179,114 | $ | 197,292 | (9 | )% | ||||||
Amounts Attributable to Federated Earnings Per Share1 |
||||||||||||
Basic |
$ | 1.73 | $ | 1.93 | (10 | )% | ||||||
Diluted |
$ | 1.73 | $ | 1.92 | (10 | )% | ||||||
Weighted-average shares outstanding |
||||||||||||
Basic |
99,925 | 99,923 | ||||||||||
Diluted |
99,993 | 100,056 | ||||||||||
Dividends declared per share |
$ | 2.22 | $ | 0.96 | ||||||||
1) | Unvested share-based payment awards that receive non-forfeitable dividend rights are considered participating securities and are required to be included in the computation of earnings per share under the two-class method. Total income available to participating restricted shareholders was $6.4 million and $4.9 million for the twelve months ended Dec. 31, 2010 and Dec. 31, 2009, respectively. |
Federated Reports Q4 and Year-End 2010 Earnings | Page 7 of 10 |
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
Dec. 31, | Dec. 31, | |||||||
2010 | 2009 | |||||||
Assets |
||||||||
Cash and other investments |
$ | 333,641 | $ | 121,990 | ||||
Other current assets |
39,529 | 62,797 | ||||||
Deferred sales commissions, net |
10,317 | 15,318 | ||||||
Intangible assets, net and goodwill |
720,825 | 662,996 | ||||||
Other long-term assets |
49,192 | 49,332 | ||||||
Total Assets |
$ | 1,153,504 | $ | 912,433 | ||||
Liabilities and Equity |
||||||||
Current liabilities |
$ | 214,352 | $ | 196,998 | ||||
Long-term debtrecourse |
361,250 | 105,000 | ||||||
Long-term debtnonrecourse |
4,436 | 13,556 | ||||||
Other long-term liabilities |
79,751 | 54,151 | ||||||
Equity excluding treasury stock |
1,272,324 | 1,338,117 | ||||||
Treasury stock |
(778,609 | ) | (795,389 | ) | ||||
Total Liabilities and Equity |
$ | 1,153,504 | $ | 912,433 | ||||
Federated Reports Q4 and Year-End 2010 Earnings | Page 8 of 10 |
Changes in Equity and Fixed-Income Fund Assets
(in millions)
Quarter Ended | Year Ended Dec. 31, | |||||||||||||||||||
Dec. 31, 2010 |
Dec. 31, 2009 |
Sept. 30, 2010 |
2010 | 2009 | ||||||||||||||||
Equity Funds |
||||||||||||||||||||
Beginning assets |
$ | 21,325 | $ | 20,350 | $ | 19,344 | $ | 20,960 | $ | 17,562 | ||||||||||
Sales |
1,756 | 1,555 | 1,639 | 6,288 | 5,560 | |||||||||||||||
Redemptions |
(1,937 | ) | (1,488 | ) | (1,582 | ) | (7,041 | ) | (5,607 | ) | ||||||||||
Net (redemptions) sales |
(181 | ) | 67 | 57 | (753 | ) | (47 | ) | ||||||||||||
Net exchanges |
7 | (11 | ) | (31 | ) | (47 | ) | (90 | ) | |||||||||||
Acquisition related |
0 | 0 | 0 | 0 | 257 | |||||||||||||||
Market gains and reinvestments1 |
1,475 | 554 | 1,955 | 2,466 | 3,278 | |||||||||||||||
Ending assets |
$ | 22,626 | $ | 20,960 | $ | 21,325 | $ | 22,626 | $ | 20,960 | ||||||||||
Fixed-Income Funds |
||||||||||||||||||||
Beginning assets |
$ | 32,211 | $ | 26,960 | $ | 30,651 | $ | 28,427 | $ | 19,321 | ||||||||||
Sales |
3,820 | 4,355 | 3,655 | 15,595 | 16,892 | |||||||||||||||
Redemptions |
(3,743 | ) | (3,095 | ) | (2,829 | ) | (13,136 | ) | (10,073 | ) | ||||||||||
Net sales |
77 | 1,260 | 826 | 2,459 | 6,819 | |||||||||||||||
Net exchanges |
(71 | ) | 27 | 20 | (20 | ) | 128 | |||||||||||||
Market (losses) gains and reinvestments1 |
(284 | ) | 180 | 714 | 1,067 | 2,159 | ||||||||||||||
Ending assets |
$ | 31,933 | $ | 28,427 | $ | 32,211 | $ | 31,933 | $ | 28,427 | ||||||||||
1) | Reflects the approximate changes in the market value of the securities held by the funds and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates. |
Federated Reports Q4 and Year-End 2010 Earnings | Page 9 of 10 |
Changes in Equity and Fixed-Income Separate Account Assets and Liquidation Portfolios
(in millions)
Quarter Ended | Year Ended Dec. 31, | |||||||||||||||||||
Dec. 31, 2010 |
Dec. 31, 2009 |
Sept. 30, 2010 |
2010 | 2009 | ||||||||||||||||
Equity Separate Accounts1 |
||||||||||||||||||||
Beginning assets |
$ | 7,808 | $ | 8,774 | $ | 7,470 | $ | 8,713 | $ | 9,099 | ||||||||||
Sales2 |
464 | | 522 | 1,689 | | |||||||||||||||
Redemptions2 |
(760 | ) | | (975 | ) | (3,149 | ) | | ||||||||||||
Net redemptions2 |
(296 | ) | (419 | ) | (453 | ) | (1,460 | ) | (1,515 | ) | ||||||||||
Net exchanges |
10 | 16 | 9 | 41 | 86 | |||||||||||||||
Acquisition related |
0 | 0 | 0 | 0 | (257 | ) | ||||||||||||||
Market gains and reinvestments3 |
654 | 342 | 782 | 882 | 1,300 | |||||||||||||||
Ending assets |
$ | 8,176 | $ | 8,713 | $ | 7,808 | $ | 8,176 | $ | 8,713 | ||||||||||
Fixed-Income Separate Accounts1 |
||||||||||||||||||||
Beginning assets |
$ | 7,963 | $ | 5,079 | $ | 7,361 | $ | 5,360 | $ | 4,165 | ||||||||||
Sales2 |
1,014 | | 530 | 4,303 | | |||||||||||||||
Redemptions2 |
(150 | ) | | (244 | ) | (1,228 | ) | | ||||||||||||
Net sales 2 |
864 | 241 | 286 | 3,075 | 510 | |||||||||||||||
Market (losses) gains and reinvestments3 |
(55 | ) | 40 | 316 | 337 | 685 | ||||||||||||||
Ending assets |
$ | 8,772 | $ | 5,360 | $ | 7,963 | $ | 8,772 | $ | 5,360 | ||||||||||
Liquidation Portfolios4 |
||||||||||||||||||||
Beginning assets |
$ | 11,071 | $ | 13,073 | $ | 11,491 | $ | 12,596 | $ | 1,505 | ||||||||||
Sales2 |
2 | | 3 | 12 | | |||||||||||||||
Redemptions2 |
(365 | ) | | (423 | ) | (1,900 | ) | | ||||||||||||
Net (redemptions) sales 2 |
(363 | ) | (478 | ) | (420 | ) | (1,888 | ) | 11,085 | |||||||||||
Market gains and reinvestments3 |
0 | 1 | 0 | 0 | 6 | |||||||||||||||
Ending assets |
$ | 10,708 | $ | 12,596 | $ | 11,071 | $ | 10,708 | $ | 12,596 | ||||||||||
1) | Includes separately managed accounts, institutional accounts and sub-advised funds (both variable annuity and other) and other managed products. |
2) | For certain accounts, Sales, Redemptions or Net sales (redemptions) are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains (losses) and reinvestments. Sales and Redemptions data was not reported prior to 2010, therefore some historical data is not available. |
3) | Reflects the approximate changes in the market value of the securities held in the portfolios, and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates. |
4) | Liquidation portfolios include portfolios of distressed fixed-income securities and liquidating collateralized debt obligation (CDO) products. In the distressed security category, Federated has been retained by a third party to manage these assets through an orderly liquidation process that will generally occur over a multi-year period. In the case of liquidating CDOs, the CDO structure has unwound earlier than expected due to events of default related to certain distressed securities in the portfolio. Management-fee rates earned from these portfolios are significantly different than those of traditional separate account mandates. |
Federated Reports Q4 and Year-End 2010 Earnings | Page 10 of 10 |
MANAGED ASSETS (in millions) |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
Dec. 31, 2009 |
|||||||||||||||
By Asset Class |
||||||||||||||||||||
Equity |
$ | 30,802 | $ | 29,133 | $ | 26,814 | $ | 30,066 | $ | 29,673 | ||||||||||
Fixed-income |
40,705 | 40,174 | 38,012 | 35,527 | 33,787 | |||||||||||||||
Money market |
276,026 | 260,899 | 260,519 | 272,344 | 313,260 | |||||||||||||||
Liquidation portfolios1 |
10,708 | 11,071 | 11,491 | 11,930 | 12,596 | |||||||||||||||
Total Managed Assets |
$ | 358,241 | $ | 341,277 | $ | 336,836 | $ | 349,867 | $ | 389,316 | ||||||||||
By Product Type |
||||||||||||||||||||
Mutual Funds: |
||||||||||||||||||||
Equity |
$ | 22,626 | $ | 21,325 | $ | 19,344 | $ | 21,445 | $ | 20,960 | ||||||||||
Fixed-income |
31,933 | 32,211 | 30,651 | 30,007 | 28,427 | |||||||||||||||
Money market |
244,796 | 233,611 | 231,205 | 240,160 | 281,569 | |||||||||||||||
Total Fund Assets |
$ | 299,355 | $ | 287,147 | $ | 281,200 | $ | 291,612 | $ | 330,956 | ||||||||||
Separate Accounts: |
||||||||||||||||||||
Equity |
$ | 8,176 | $ | 7,808 | $ | 7,470 | $ | 8,621 | $ | 8,713 | ||||||||||
Fixed-income |
8,772 | 7,963 | 7,361 | 5,520 | 5,360 | |||||||||||||||
Money market |
31,230 | 27,288 | 29,314 | 32,184 | 31,691 | |||||||||||||||
Total Separate Accounts |
$ | 48,178 | $ | 43,059 | $ | 44,145 | $ | 46,325 | $ | 45,764 | ||||||||||
Total Liquidation Portfolios1 |
$ | 10,708 | $ | 11,071 | $ | 11,491 | $ | 11,930 | $ | 12,596 | ||||||||||
Total Managed Assets |
$ | 358,241 | $ | 341,277 | $ | 336,836 | $ | 349,867 | $ | 389,316 | ||||||||||
AVERAGE MANAGED ASSETS | Quarter Ended | |||||||||||||||||||
(in millions) |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
Dec. 31, 2009 |
|||||||||||||||
By Asset Class |
||||||||||||||||||||
Equity |
$ | 30,108 | $ | 28,033 | $ | 28,781 | $ | 29,493 | $ | 29,343 | ||||||||||
Fixed-income |
40,686 | 39,192 | 35,920 | 34,962 | 33,164 | |||||||||||||||
Money market |
263,976 | 260,098 | 260,634 | 290,094 | 312,761 | |||||||||||||||
Liquidation portfolios1 |
10,926 | 11,313 | 11,759 | 12,320 | 12,881 | |||||||||||||||
Total Avg. Assets |
$ | 345,696 | $ | 338,636 | $ | 337,094 | $ | 366,869 | $ | 388,149 | ||||||||||
By Product Type |
||||||||||||||||||||
Mutual Funds: |
||||||||||||||||||||
Equity |
$ | 22,090 | $ | 20,411 | $ | 20,590 | $ | 20,971 | $ | 20,625 | ||||||||||
Fixed-income |
32,369 | 31,491 | 30,266 | 29,329 | 27,903 | |||||||||||||||
Money market |
236,500 | 232,230 | 230,353 | 255,985 | 283,353 | |||||||||||||||
Total Avg. Fund Assets |
$ | 290,959 | $ | 284,132 | $ | 281,209 | $ | 306,285 | $ | 331,881 | ||||||||||
Separate Accounts: |
||||||||||||||||||||
Equity |
$ | 8,018 | $ | 7,622 | $ | 8,191 | $ | 8,522 | $ | 8,718 | ||||||||||
Fixed-income |
8,317 | 7,701 | 5,654 | 5,633 | 5,261 | |||||||||||||||
Money market |
27,476 | 27,868 | 30,281 | 34,109 | 29,408 | |||||||||||||||
Total Avg. Separate Accts. |
$ | 43,811 | $ | 43,191 | $ | 44,126 | $ | 48,264 | $ | 43,387 | ||||||||||
Total Avg. Liquidation Portfolios1 |
$ | 10,926 | $ | 11,313 | $ | 11,759 | $ | 12,320 | $ | 12,881 | ||||||||||
Total Avg. Managed Assets |
$ | 345,696 | $ | 338,636 | $ | 337,094 | $ | 366,869 | $ | 388,149 | ||||||||||
1) | Liquidation portfolios include portfolios of distressed fixed-income securities and liquidating collateralized debt obligation (CDO) products. In the distressed security category, Federated has been retained by a third party to manage these assets through an orderly liquidation process that will generally occur over a multi-year period. In the case of liquidating CDOs, the CDO structure has unwound earlier than expected due to events of default related to certain distressed securities in the portfolio. Management-fee rates earned from these portfolios are significantly different than those of traditional separate account mandates. |