Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FEDERATED HERMES, INC. | a8-kx2013q2epr.htm |
Exhibit 99.1
Federated Investors, Inc. Reports Second Quarter 2013 Earnings
• | Equity assets increase $5.5 billion or 17% to $38.7 billion from Q2 2012 |
• | Net equity sales were $383 million during Q2 2013 |
• | Board increases dividend 4% to $0.25 per share |
(PITTSBURGH, Pa., July 25, 2013) — Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.39 and net income of $40.4 million for Q2 2013, each of which is the same amount reported for Q2 2012. Federated reported YTD 2013 EPS of $0.80, matching the amount reported for the first half of 2012.
Federated's total managed assets were $363.8 billion at June 30, 2013, up $7.9 billion or 2 percent from $355.9 billion at June 30, 2012 and down $13.5 billion or 4 percent from $377.3 billion reported at March 31, 2013. Average managed assets for Q2 2013 were $372.9 billion, up $12.3 billion or 3 percent from $360.6 billion reported for Q2 2012 and down $8.3 billion or 2 percent from $381.2 billion reported for Q1 2013.
"Equity sales were positive for the quarter with strong client interest in a variety of strategies, especially our income-oriented portfolios investing in both U.S. and international dividend-paying companies," said J. Christopher Donahue, president and chief executive officer. "Federated offers a diversified approach to the pursuit of dividends and income with a range of equity, fixed-income and balanced investment solutions."
Federated's board of directors declared a quarterly dividend of $0.25 per share, a 4 percent increase from the prior quarter. The dividend is payable on Aug. 15, 2013 to shareholders of record as of Aug. 8, 2013. During Q2 2013, Federated purchased 158,133 shares of Federated class B common stock for $2.8 million.
Federated's equity assets were $38.7 billion at June 30, 2013, up $5.5 billion or 17 percent from $33.2 billion at June 30, 2012 and up $0.8 billion or 2 percent from $37.9 billion at March 31, 2013. Top-selling equity funds during Q2 2013 on a net basis were Federated Strategic Value Dividend Fund, Federated Capital Income Fund, Federated International Strategic Value Dividend Fund, Federated Kaufmann Large Cap Fund and Federated Muni and Stock Advantage Fund.
Federated's fixed-income assets were $50.0 billion at June 30, 2013, up $1.0 billion or 2 percent from $49.0 billion at June 30, 2012 and down $2.8 billion or 5 percent from $52.8 billion at March 31, 2013. Bond assets in the liquidation portfolio were $6.6 billion at June 30, 2013. Top-selling fixed-income funds during Q2 2013 on a net basis included several of Federated's U.S. and U.K.-domiciled short-duration products and Federated Institutional High Yield Bond Fund.
Money market assets in both funds and separate accounts were $268.5 billion at June 30, 2013, up $3.0 billion or 1 percent from $265.5 billion at June 30, 2012 and down $11.2 billion or 4 percent from $279.7 billion at March 31, 2013. Money market mutual fund assets were $232.9 billion at June 30, 2013, down $5.7 billion or 2 percent from $238.6 billion at June 30, 2012 and down $9.8 billion or 4 percent from $242.7 billion at March 31, 2013.
MEDIA: | MEDIA: | ANALYSTS: |
Meghan McAndrew 412-288-8103 | J.T. Tuskan 412-288-7895 | Ray Hanley 412-288-1920 |
Federated Reports Q2 2013 Earnings | Page 2 of 10 | |
Financial Summary
Q2 2013 vs. Q2 2012
Revenue decreased by $8.3 million or 4 percent due primarily to an increase in voluntary fee waivers related to certain money market funds in order for these funds to maintain positive or zero net yields. The decrease was partially offset by an increase in revenue due to higher average equity and fixed-income assets. See additional information about voluntary fee waivers in the table at the end of this financial summary.
During Q2 2013, Federated derived 59 percent of its revenue from equity and fixed-income assets (36 percent from equity assets and 23 percent from fixed-income assets), 40 percent from money market assets and 1 percent from other products and services.
Operating expenses decreased $5.3 million or 3 percent primarily related to a decrease in distribution expense related to increased fee waivers, which were partially offset by increased compensation and related expenses.
Q2 2013 vs. Q1 2013
Revenue decreased by $4.2 million or 2 percent primarily due to an increase in voluntary fee waivers.
Operating expenses decreased by $2.0 million or 1 percent. The decrease primarily reflects lower distribution expense related to the aforementioned increase in fee waivers.
YTD 2013 vs. YTD 2012
Revenue decreased by $10.6 million or 2 percent primarily due to an increase in voluntary fee waivers, which was partially offset by an increase from higher average equity, fixed-income and money market assets.
For the first half of 2013, Federated derived 57 percent of its revenue from equity and fixed-income assets (34 percent from equity assets and 23 percent from fixed-income assets), 42 percent from money market assets and 1 percent from other products and services.
Operating expenses decreased by $5.5 million or 2 percent primarily due to a decrease in distribution expense related primarily to increased fee waivers that were partially offset by an increase related to a change in the mix of average money market assets and increased compensation and related expenses.
Federated's level of business activity and financial results are dependent upon many factors including market conditions, investment performance and investor behavior. These factors and others including asset levels, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers and expenses can impact Federated's activity levels and financial results significantly. Risk factors and uncertainties that can influence Federated's financial results are discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission.
Fee waivers to maintain positive or zero net yields could vary significantly in the future as they are contingent on a number of variables including, but not limited to, changes in assets within the money market funds, available yields on instruments held by the money market funds, actions by the Federal Reserve, the U.S. Department of the Treasury, the Securities and Exchange Commission, the Financial Stability Oversight Council and other governmental entities, changes in expenses of the money market funds, changes in the mix of money market customer assets, Federated’s willingness to continue the fee waivers and changes in the extent to which the impact of the waivers is shared by third parties.
Federated Reports Q2 2013 Earnings | Page 3 of 10 | |
Money Market Fund Yield Waiver Impact to Consolidated Statements of Income
(in millions)
Quarter Ended | Change Q2 2012 to Q2 2013 | Quarter Ended | Change Q1 2013 to Q2 2013 | Six Months Ended | Change YTD 2012 to YTD 2013 | ||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | March 31, 2013 | June 30, 2013 | June 30, 2012 | |||||||||||||||||||||||||||
Investment advisory fees | $ | (59.4 | ) | $ | (43.0 | ) | $ | (16.4 | ) | $ | (54.9 | ) | $ | (4.5 | ) | $ | (114.3 | ) | $ | (95.9 | ) | $ | (18.4 | ) | |||||||
Other service fees | (32.5 | ) | (27.3 | ) | (5.2 | ) | (32.4 | ) | (0.1 | ) | (65.0 | ) | (54.8 | ) | (10.2 | ) | |||||||||||||||
Total Revenue | $ | (91.9 | ) | $ | (70.3 | ) | $ | (21.6 | ) | $ | (87.3 | ) | $ | (4.6 | ) | $ | (179.3 | ) | $ | (150.7 | ) | $ | (28.6 | ) | |||||||
Less: Reduction in distribution expense | 66.9 | 53.1 | 13.8 | 64.8 | 2.1 | 131.7 | 110.6 | 21.1 | |||||||||||||||||||||||
Operating income | $ | (25.0 | ) | $ | (17.2 | ) | $ | (7.8 | ) | $ | (22.5 | ) | $ | (2.5 | ) | $ | (47.6 | ) | $ | (40.1 | ) | $ | (7.5 | ) | |||||||
Less: Reduction in noncontrolling interest | 1.3 | 0.0 | 1.3 | 0.8 | 0.5 | 2.1 | 0.6 | 1.5 | |||||||||||||||||||||||
Pre-tax impact | $ | (23.7 | ) | $ | (17.2 | ) | $ | (6.5 | ) | $ | (21.7 | ) | $ | (2.0 | ) | $ | (45.5 | ) | $ | (39.5 | ) | $ | (6.0 | ) | |||||||
Federated will host an earnings conference call at 9 a.m. Eastern on July 26, 2013. Investors are invited to listen to Federated's earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (international) prior to the 9 a.m. start time. The call may also be accessed in real time on the Internet via the About Federated section of FederatedInvestors.com. A replay will be available after 12:30 p.m. and through Aug. 2, 2013 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 417387.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $363.8 billion in assets as of June 30, 2013. With 135 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 5,700 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top 3 percent of money market fund managers in the industry, the top 7 percent of equity fund managers and the top 9 percent of fixed-income fund managers1. For more information, visit FederatedInvestors.com.
###
1 Strategic Insight, May 31, 2013. Based on assets under management in open-end funds.
Federated Securities Corp. is distributor of the Federated funds.
Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling and Federated MDTA LLC, each a registered investment adviser.
Certain statements in this press release, such as those related to the level of fee waivers and expenses incurred by the company, product demand, asset flows and mix and market conditions constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, which could vary significantly depending on a variety of factors identified above, and include the ability of the company to sustain product demand and asset flows and mix, which could vary significantly depending on market conditions, investment performance and investor behavior. Other risks and uncertainties also include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
Federated Reports Q2 2013 Earnings | Page 4 of 10 | |
Unaudited Condensed Consolidated Statements of Income | |||||||||||||
(in thousands, except per share data) | |||||||||||||
Quarter Ended | % Change Q2 2012 to Q2 2013 | Quarter Ended | % Change Q1 2013 to Q2 2013 | ||||||||||
June 30, 2013 | June 30, 2012 | March 31, 2013 | |||||||||||
Revenue | |||||||||||||
Investment advisory fees, net | $ | 147,515 | $ | 154,367 | (4 | )% | $ | 150,763 | (2 | )% | |||
Administrative service fees, net | 55,253 | 54,986 | 0 | 56,828 | (3 | ) | |||||||
Other service fees, net | 19,856 | 22,007 | (10 | ) | 19,332 | 3 | |||||||
Other, net | 1,182 | 772 | 53 | 1,049 | 13 | ||||||||
Total Revenue | 223,806 | 232,132 | (4 | ) | 227,972 | (2 | ) | ||||||
Operating Expenses | |||||||||||||
Compensation and related | 67,855 | 65,215 | 4 | 66,937 | 1 | ||||||||
Distribution | 53,809 | 62,328 | (14 | ) | 58,240 | (8 | ) | ||||||
Professional service fees | 9,293 | 9,932 | (6 | ) | 8,844 | 5 | |||||||
Office and occupancy | 6,543 | 6,119 | 7 | 6,432 | 2 | ||||||||
Systems and communications | 6,087 | 6,773 | (10 | ) | 6,623 | (8 | ) | ||||||
Advertising and promotional | 3,936 | 3,316 | 19 | 3,422 | 15 | ||||||||
Travel and related | 3,533 | 3,336 | 6 | 2,686 | 32 | ||||||||
Intangible asset related | 654 | 822 | (20 | ) | 763 | (14 | ) | ||||||
Other | 6,068 | 5,271 | 15 | 5,826 | 4 | ||||||||
Total Operating Expenses | 157,778 | 163,112 | (3 | ) | 159,773 | (1 | ) | ||||||
Operating Income | 66,028 | 69,020 | (4 | ) | 68,199 | (3 | ) | ||||||
Nonoperating Income (Expenses) | |||||||||||||
Investment income, net | 4,059 | 2,272 | 79 | 4,428 | (8 | ) | |||||||
Debt expense | (3,137 | ) | (3,690 | ) | (15 | ) | (3,253 | ) | (4 | ) | |||
Other, net | (30 | ) | (128 | ) | (77 | ) | (40 | ) | (25 | ) | |||
Total Nonoperating Income (Expenses), net | 892 | (1,546 | ) | (158 | ) | 1,135 | (21 | ) | |||||
Income before income taxes | 66,920 | 67,474 | (1 | ) | 69,334 | (3 | ) | ||||||
Income tax provision | 25,059 | 24,401 | 3 | 24,646 | 2 | ||||||||
Net income including noncontrolling interest in subsidiaries | 41,861 | 43,073 | (3 | ) | 44,688 | (6 | ) | ||||||
Less: Net income attributable to the noncontrolling interest in subsidiaries | 1,453 | 2,663 | (45 | ) | 1,694 | (14 | ) | ||||||
Net Income | $ | 40,408 | $ | 40,410 | 0 | % | $ | 42,994 | (6 | )% | |||
Amounts Attributable to Federated | |||||||||||||
Earnings Per Share1 | |||||||||||||
Basic and diluted | $ | 0.39 | $ | 0.39 | 0 | % | $ | 0.41 | (5 | )% | |||
Weighted-average shares outstanding | |||||||||||||
Basic | 100,716 | 100,347 | 100,518 | ||||||||||
Diluted | 100,717 | 100,347 | 100,518 | ||||||||||
Dividends declared per share | $ | 0.24 | $ | 0.24 | $ | 0.24 | |||||||
1) Unvested share-based payment awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the “two-class method.” As such, total net income of $1.5 million, $1.5 million and $1.7 million available to unvested restricted shares for the quarterly periods ended June 30, 2013, June 30, 2012 and March 31, 2013, respectively, was excluded from the computation of earnings per share.
Federated Reports Q2 2013 Earnings | Page 5 of 10 | |
Unaudited Condensed Consolidated Statements of Income | ||||||||
(in thousands, except per share data) | ||||||||
Six Months Ended | % Change | |||||||
June 30, 2013 | June 30, 2012 | |||||||
Revenue | ||||||||
Investment advisory fees, net | $ | 298,278 | $ | 303,714 | (2 | )% | ||
Administrative service fees, net | 112,081 | 112,278 | 0 | |||||
Other service fees, net | 39,187 | 44,663 | (12 | ) | ||||
Other, net | 2,231 | 1,758 | 27 | |||||
Total Revenue | 451,777 | 462,413 | (2 | ) | ||||
Operating Expenses | ||||||||
Compensation and related | 134,792 | 129,280 | 4 | |||||
Distribution | 112,048 | 124,021 | (10 | ) | ||||
Professional service fees | 18,137 | 20,240 | (10 | ) | ||||
Office and occupancy | 12,975 | 12,371 | 5 | |||||
Systems and communications | 12,710 | 13,084 | (3 | ) | ||||
Advertising and promotional | 7,358 | 6,244 | 18 | |||||
Travel and related | 6,219 | 6,087 | 2 | |||||
Intangible asset related | 1,417 | 843 | 68 | |||||
Other | 11,894 | 10,876 | 9 | |||||
Total Operating Expenses | 317,550 | 323,046 | (2 | ) | ||||
Operating Income | 134,227 | 139,367 | (4 | ) | ||||
Nonoperating Income (Expenses) | ||||||||
Investment income, net | 8,487 | 5,618 | 51 | |||||
Debt expense | (6,390 | ) | (7,401 | ) | (14 | ) | ||
Other, net | (70 | ) | (166 | ) | (58 | ) | ||
Total Nonoperating Income (Expenses), net | 2,027 | (1,949 | ) | (204 | ) | |||
Income before income taxes | 136,254 | 137,418 | (1 | ) | ||||
Income tax provision | 49,705 | 49,938 | 0 | |||||
Net income including noncontrolling interest in subsidiaries | 86,549 | 87,480 | (1 | ) | ||||
Less: Net income attributable to the noncontrolling interest in subsidiaries | 3,147 | 4,745 | (34 | ) | ||||
Net Income | $ | 83,402 | $ | 82,735 | 1 | % | ||
Amounts Attributable to Federated | ||||||||
Earnings Per Share1 | ||||||||
Basic and diluted | $ | 0.80 | $ | 0.80 | 0 | % | ||
Weighted-average shares outstanding | ||||||||
Basic | 100,617 | 100,229 | ||||||
Diluted | 100,618 | 100,229 | ||||||
Dividends declared per share | $ | 0.48 | $ | 0.48 | ||||
1) Unvested share-based payment awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the “two-class method.” As such, total net income of $3.2 million and $3.0 million available to unvested restricted shares for the six months ended June 30, 2013 and June 30, 2012, respectively, was excluded from the computation of earnings per share.
Federated Reports Q2 2013 Earnings | Page 6 of 10 | |
Unaudited Condensed Consolidated Balance Sheets | ||||||
(in thousands) | June 30, 2013 | Dec. 31, 2012 | ||||
Assets | ||||||
Cash and other investments | $ | 302,945 | $ | 258,628 | ||
Other current assets | 48,293 | 41,434 | ||||
Intangible assets, net and goodwill | 726,505 | 727,857 | ||||
Other long-term assets | 64,463 | 62,142 | ||||
Total Assets | $ | 1,142,206 | $ | 1,090,061 | ||
Liabilities, redeemable noncontrolling interest and equity | ||||||
Current liabilities | $ | 146,326 | $ | 181,134 | ||
Long-term debt | 255,000 | 276,250 | ||||
Other long-term liabilities | 136,218 | 128,733 | ||||
Redeemable noncontrolling interest | 69,539 | 7,268 | ||||
Equity excluding treasury stock | 1,289,317 | 1,256,698 | ||||
Treasury stock | (754,194 | ) | (760,022 | ) | ||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 1,142,206 | $ | 1,090,061 | ||
Federated Reports Q2 2013 Earnings | Page 7 of 10 | |
Changes in Equity and Fixed-Income Fund and Separate Account Assets
(in millions)
Quarter Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | March 31, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||||
Equity Funds | ||||||||||||||||
Beginning assets | $ | 24,491 | $ | 23,152 | $ | 23,612 | $ | 23,152 | $ | 21,930 | ||||||
Sales | 1,918 | 1,752 | 1,529 | 3,670 | 3,352 | |||||||||||
Redemptions | (1,629 | ) | (2,388 | ) | (1,797 | ) | (4,017 | ) | (3,984 | ) | ||||||
Net sales (redemptions) | 289 | (636 | ) | (268 | ) | (347 | ) | (632 | ) | |||||||
Net exchanges | 43 | 47 | 3 | 90 | (9 | ) | ||||||||||
Market gains and losses/reinvestments1 | 207 | 1,928 | (676 | ) | 2,135 | 1,382 | ||||||||||
Ending assets | $ | 25,030 | $ | 24,491 | $ | 22,671 | $ | 25,030 | $ | 22,671 | ||||||
Equity Separate Accounts2 | ||||||||||||||||
Beginning assets | $ | 13,361 | $ | 11,858 | $ | 10,505 | $ | 11,858 | $ | 8,957 | ||||||
Sales3 | 1,031 | 1,106 | 836 | 2,137 | 2,297 | |||||||||||
Redemptions3 | (937 | ) | (568 | ) | (697 | ) | (1,505 | ) | (1,183 | ) | ||||||
Net sales3 | 94 | 538 | 139 | 632 | 1,114 | |||||||||||
Net exchanges | 0 | 0 | (9 | ) | 0 | (9 | ) | |||||||||
Market gains and losses/reinvestments1 | 220 | 965 | (85 | ) | 1,185 | 488 | ||||||||||
Ending assets | $ | 13,675 | $ | 13,361 | $ | 10,550 | $ | 13,675 | $ | 10,550 | ||||||
Total Equity2 | ||||||||||||||||
Beginning assets | $ | 37,852 | $ | 35,010 | $ | 34,117 | $ | 35,010 | $ | 30,887 | ||||||
Sales3 | 2,949 | 2,858 | 2,365 | 5,807 | 5,649 | |||||||||||
Redemptions3 | (2,566 | ) | (2,956 | ) | (2,494 | ) | (5,522 | ) | (5,167 | ) | ||||||
Net sales (redemptions)3 | 383 | (98 | ) | (129 | ) | 285 | 482 | |||||||||
Net exchanges | 43 | 47 | (6 | ) | 90 | (18 | ) | |||||||||
Market gains and losses/reinvestments1 | 427 | 2,893 | (761 | ) | 3,320 | 1,870 | ||||||||||
Ending assets | $ | 38,705 | $ | 37,852 | $ | 33,221 | $ | 38,705 | $ | 33,221 | ||||||
Fixed-Income Funds | ||||||||||||||||
Beginning assets | $ | 42,612 | $ | 42,478 | $ | 38,526 | $ | 42,478 | $ | 37,241 | ||||||
Sales | 5,232 | 5,148 | 5,636 | 10,380 | 10,458 | |||||||||||
Redemptions | (6,877 | ) | (5,009 | ) | (3,639 | ) | (11,886 | ) | (7,626 | ) | ||||||
Net (redemptions) sales | (1,645 | ) | 139 | 1,997 | (1,506 | ) | 2,832 | |||||||||
Net exchanges | (80 | ) | (42 | ) | (1,510 | ) | (122 | ) | (1,569 | ) | ||||||
Market gains and losses/reinvestments1 | (699 | ) | 37 | 481 | (662 | ) | 990 | |||||||||
Ending assets | $ | 40,188 | $ | 42,612 | $ | 39,494 | $ | 40,188 | $ | 39,494 | ||||||
Fixed-Income Separate Accounts2 | ||||||||||||||||
Beginning assets | $ | 10,158 | $ | 10,233 | $ | 7,695 | $ | 10,233 | $ | 7,573 | ||||||
Sales3 | 562 | 531 | 624 | 1,093 | 844 | |||||||||||
Redemptions3 | (725 | ) | (645 | ) | (521 | ) | (1,370 | ) | (801 | ) | ||||||
Net (redemptions) sales3 | (163 | ) | (114 | ) | 103 | (277 | ) | 43 | ||||||||
Net exchanges | 7 | 0 | 1,592 | 7 | 1,592 | |||||||||||
Market gains and losses/reinvestments1 | (185 | ) | 39 | 84 | (146 | ) | 266 | |||||||||
Ending assets | $ | 9,817 | $ | 10,158 | $ | 9,474 | $ | 9,817 | $ | 9,474 | ||||||
Total Fixed Income2 | ||||||||||||||||
Beginning assets | $ | 52,770 | $ | 52,711 | $ | 46,221 | $ | 52,711 | $ | 44,814 | ||||||
Sales3 | 5,794 | 5,679 | 6,260 | 11,473 | 11,302 | |||||||||||
Redemptions3 | (7,602 | ) | (5,654 | ) | (4,160 | ) | (13,256 | ) | (8,427 | ) | ||||||
Net (redemptions) sales3 | (1,808 | ) | 25 | 2,100 | (1,783 | ) | 2,875 | |||||||||
Net exchanges | (73 | ) | (42 | ) | 82 | (115 | ) | 23 | ||||||||
Market gains and losses/reinvestments1 | (884 | ) | 76 | 565 | (808 | ) | 1,256 | |||||||||
Ending assets | $ | 50,005 | $ | 52,770 | $ | 48,968 | $ | 50,005 | $ | 48,968 | ||||||
1) Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates.
2) Includes separately managed accounts, institutional accounts and sub-advised funds and other managed products.
3) For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses/reinvestments.
Federated Reports Q2 2013 Earnings | Page 8 of 10 | |
Changes in Liquidation Portfolio
(in millions)
Quarter Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | March 31, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||||
Liquidation Portfolio1 | ||||||||||||||||
Beginning assets | $ | 7,019 | $ | 7,346 | $ | 8,583 | $ | 7,346 | $ | 8,856 | ||||||
Net redemptions | (458 | ) | (327 | ) | (458 | ) | (785 | ) | (731 | ) | ||||||
Market gains and losses/reinvestments2 | 0 | 0 | (1 | ) | 0 | (1 | ) | |||||||||
Ending Assets | $ | 6,561 | $ | 7,019 | $ | 8,124 | $ | 6,561 | $ | 8,124 | ||||||
1) Liquidation portfolio represents a portfolio of distressed bonds. Federated has been retained by a third party to manage these assets through an orderly liquidation process that will generally occur over a multi-year period. Management-fee rates earned from this portfolio are lower than those of traditional separate account mandates.
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.
Federated Reports Q2 2013 Earnings | Page 9 of 10 | |
MANAGED ASSETS (in millions) | June 30, 2013 | March 31, 2013 | Dec. 31, 2012 | Sept. 30, 2012 | June 30, 2012 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 38,705 | $ | 37,852 | $ | 35,010 | $ | 35,355 | $ | 33,221 | |||||
Fixed-income | 50,005 | 52,770 | 52,711 | 51,389 | 48,968 | ||||||||||
Money market | 268,532 | 279,668 | 284,704 | 269,622 | 265,548 | ||||||||||
Liquidation portfolio1 | 6,561 | 7,019 | 7,346 | 7,718 | 8,124 | ||||||||||
Total Managed Assets | $ | 363,803 | $ | 377,309 | $ | 379,771 | $ | 364,084 | $ | 355,861 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 25,030 | $ | 24,491 | $ | 23,152 | $ | 23,658 | $ | 22,671 | |||||
Fixed-income | 40,188 | 42,612 | 42,478 | 41,547 | 39,494 | ||||||||||
Money market | 232,874 | 242,734 | 255,689 | 244,826 | 238,610 | ||||||||||
Total Fund Assets | $ | 298,092 | $ | 309,837 | $ | 321,319 | $ | 310,031 | $ | 300,775 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 13,675 | $ | 13,361 | $ | 11,858 | $ | 11,697 | $ | 10,550 | |||||
Fixed-income | 9,817 | 10,158 | 10,233 | 9,842 | 9,474 | ||||||||||
Money market | 35,658 | 36,934 | 29,015 | 24,796 | 26,938 | ||||||||||
Total Separate Accounts | $ | 59,150 | $ | 60,453 | $ | 51,106 | $ | 46,335 | $ | 46,962 | |||||
Total Liquidation Portfolio1 | $ | 6,561 | $ | 7,019 | $ | 7,346 | $ | 7,718 | $ | 8,124 | |||||
Total Managed Assets | $ | 363,803 | $ | 377,309 | $ | 379,771 | $ | 364,084 | $ | 355,861 | |||||
AVERAGE MANAGED ASSETS | Quarter Ended | ||||||||||||||
(in millions) | June 30, 2013 | March 31, 2013 | Dec. 31, 2012 | Sept. 30, 2012 | June 30, 2012 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 38,762 | $ | 36,685 | $ | 35,016 | $ | 34,429 | $ | 32,993 | |||||
Fixed-income | 52,375 | 52,732 | 52,211 | 50,195 | 47,747 | ||||||||||
Money market | 274,899 | 284,588 | 273,943 | 268,573 | 271,507 | ||||||||||
Liquidation portfolio1 | 6,834 | 7,215 | 7,559 | 7,948 | 8,353 | ||||||||||
Total Avg. Assets | $ | 372,870 | $ | 381,220 | $ | 368,729 | $ | 361,145 | $ | 360,600 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 25,094 | $ | 24,037 | $ | 23,209 | $ | 23,133 | $ | 22,642 | |||||
Fixed-income | 42,258 | 42,581 | 42,156 | 40,579 | 38,901 | ||||||||||
Money market | 237,790 | 250,652 | 248,534 | 243,111 | 243,454 | ||||||||||
Total Avg. Fund Assets | $ | 305,142 | $ | 317,270 | $ | 313,899 | $ | 306,823 | $ | 304,997 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 13,668 | $ | 12,648 | $ | 11,807 | $ | 11,296 | $ | 10,351 | |||||
Fixed-income | 10,117 | 10,151 | 10,055 | 9,616 | 8,846 | ||||||||||
Money market | 37,109 | 33,936 | 25,409 | 25,462 | 28,053 | ||||||||||
Total Avg. Separate Accounts | $ | 60,894 | $ | 56,735 | $ | 47,271 | $ | 46,374 | $ | 47,250 | |||||
Total Avg. Liquidation Portfolio1 | $ | 6,834 | $ | 7,215 | $ | 7,559 | $ | 7,948 | $ | 8,353 | |||||
Total Avg. Managed Assets | $ | 372,870 | $ | 381,220 | $ | 368,729 | $ | 361,145 | $ | 360,600 | |||||
1) Liquidation portfolio represents a portfolio of distressed bonds. Federated has been retained by a third party to manage these assets through an orderly liquidation process that will generally occur over a multi-year period. Management-fee rates earned from this portfolio are lower than those of traditional separate account mandates.
Federated Reports Q2 2013 Earnings | Page 10 of 10 | |
AVERAGE MANAGED ASSETS | Six Months Ended | ||||||
(in millions) | June 30, 2013 | June 30, 2012 | |||||
By Asset Class | |||||||
Equity | $ | 37,724 | $ | 32,910 | |||
Fixed-income | 52,553 | 46,769 | |||||
Money market | 279,743 | 277,154 | |||||
Liquidation portfolio1 | 7,025 | 8,528 | |||||
Total Avg. Assets | $ | 377,045 | $ | 365,361 | |||
By Product Type | |||||||
Funds: | |||||||
Equity | $ | 24,566 | $ | 22,859 | |||
Fixed-income | 42,419 | 38,514 | |||||
Money market | 244,221 | 247,640 | |||||
Total Avg. Fund Assets | $ | 311,206 | $ | 309,013 | |||
Separate Accounts: | |||||||
Equity | $ | 13,158 | $ | 10,051 | |||
Fixed-income | 10,134 | 8,255 | |||||
Money market | 35,522 | 29,514 | |||||
Total Avg. Separate Accounts | $ | 58,814 | $ | 47,820 | |||
Total Avg. Liquidation Portfolio1 | $ | 7,025 | $ | 8,528 | |||
Total Avg. Managed Assets | $ | 377,045 | $ | 365,361 | |||
1) Liquidation portfolio represents a portfolio of distressed bonds. Federated has been retained by a third party to manage these assets through an orderly liquidation process that will generally occur over a multi-year period. Management-fee rates earned from this portfolio are lower than those of traditional separate account mandates.