Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FEDERATED HERMES, INC. | a8-k2016q4epr.htm |
Exhibit 99.1
Federated Investors, Inc. Reports Fourth Quarter and Full-Year 2016 Earnings
• | Full-year 2016 EPS increases to $2.03, up 25 percent compared to 2015 |
• | EPS for Q4 2016 increases to $0.52, up 13 percent compared to Q4 2015 |
• | Net equity sales for 2016 reach a record $5.8 billion |
• | Board declares $0.25 per share quarterly dividend |
(PITTSBURGH, Pa., Jan. 26, 2017) — Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.52 for Q4 2016, up 13 percent from $0.46 for the same quarter last year on net income of $55.8 million for Q4 2016, compared to $47.6 million for Q4 2015. Federated reported 2016 EPS of $2.03, up 25 percent from $1.62 in 2015, on net income of $208.9 million for 2016, compared to $169.8 million for 2015.
Federated's total managed assets were $365.9 billion at Dec. 31, 2016, up $4.8 billion from $361.1 billion at Dec. 31, 2015 and up $1.6 billion from $364.3 billion at Sept. 30, 2016. Federated’s equity and fixed-income managed assets were $113.7 billion at Dec. 31, 2016, up $9.0 billion or 9 percent from $104.7 billion at Dec. 31, 2015 and down $2.3 billion or 2 percent from $116.0 billion at Sept. 30, 2016.
“Federated more than doubled net equity sales in 2016 from 2015, with our Strategic Value Dividend strategies leading the way,” said J. Christopher Donahue, president and chief executive officer. "On the fixed-income side, we saw fourth-quarter flows into products suited to a moderately rising-rate environment, including our ultrashort strategies, as well as our high-yield and floating-rate funds."
Federated's board of directors declared a quarterly dividend of $0.25 per share. The dividend is payable on Feb. 15, 2017 to shareholders of record as of Feb. 8, 2017. During Q4 2016, Federated purchased 706,000 shares of Federated class B common stock for $19.5 million, bringing the total shares of Class B common stock purchased in 2016 to 3,053,204 shares for $83.6 million.
Federated's equity assets were $62.4 billion at Dec. 31, 2016, up $8.8 billion or 16 percent from $53.6 billion at Dec. 31, 2015 and down $1.7 billion or 3 percent from $64.1 billion at Sept. 30, 2016. Top-selling equity strategies on a net basis during Q4 2016 included Federated Strategic Value, Federated MDT Small Cap Core, Federated MDT Small Cap Growth and Federated Muni and Stock Advantage.
Federated's fixed-income assets were $51.3 billion at Dec. 31, 2016, up slightly from $51.1 billion at Dec. 31, 2015 and down $0.5 billion or 1 percent from $51.8 billion at Sept. 30, 2016. Top-selling fixed-income funds on a net basis during Q4 2016 were Federated Ultrashort Bond Fund, Federated Institutional High Yield Bond Fund, Federated Floating Rate Strategic Income Fund, Federated Municipal Ultrashort Fund and Federated Government Ultrashort Duration Fund.
Federated's money market assets were $252.2 billion at Dec. 31, 2016, down $4.2 billion or 2 percent from $256.4 billion at Dec. 31, 2015 and up $3.8 billion or 2 percent from $248.4 billion at Sept. 30, 2016. Money market mutual fund assets were
MEDIA: | MEDIA: | ANALYSTS: |
Ed Costello 412-288-7538 | Meghan McAndrew 412-288-8103 | Ray Hanley 412-288-1920 |
Federated Reports Q4 and Full-Year 2016 Earnings | Page 2 of 11 | |
$206.4 billion at Dec. 31, 2016, down $15.2 billion or 7 percent from $221.6 billion at Dec. 31, 2015 and down $3.0 billion or 1 percent from $209.4 billion at Sept. 30, 2016.
Financial Summary
Q4 2016 vs. Q4 2015
Revenue increased by $46.3 million or 19 percent primarily due to a decrease in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers) and, to a lesser extent, an increase in revenue from higher average equity assets. The increase in revenue was partially offset by a decrease in revenue from lower average money market assets. See additional information about voluntary yield-related fee waivers in the table at the end of this financial summary.
During Q4 2016, Federated derived 56 percent of its revenue from equity and fixed-income assets (39 percent from equity assets and 17 percent from fixed-income assets) and 44 percent from money market assets.
Operating expenses increased by $38.3 million or 23 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers, partially offset by lower average money market assets.
Q4 2016 vs. Q3 2016
Revenue decreased by $4.7 million or 2 percent primarily due to a decrease in revenue from lower average money market assets partially offset by a decrease in voluntary yield-related fee waivers.
Operating expenses decreased slightly primarily due to a decrease in compensation and related expenses primarily due to lower incentive compensation accruals. This decrease in expenses was partially offset by an increase in distribution expenses primarily as a result of a decrease in voluntary yield-related fee waivers.
Nonoperating income, net decreased by $2.2 million or 76 percent primarily due to a decrease in net investment income resulting from a decrease in the market value of certain trading securities in Q4 2016, compared to an increase in the market value of trading securities in Q3 2016.
2016 vs. 2015
Revenue increased by $216.8 million or 23 percent primarily due to a decrease in voluntary yield-related fee waivers and an increase in revenue from higher average equity assets. The increase in revenue was partially offset by a decrease in revenue from a change in the mix of average money market assets and lower average fixed-income assets.
During 2016, Federated derived 55 percent of its revenue from equity and fixed-income assets (38 percent from equity assets and 17 percent from fixed-income assets) and 45 percent from money market assets.
Operating expenses increased by $160.5 million or 25 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers, partially offset by a change in the mix of average money market assets.
Nonoperating income (expenses), net increased by $9.8 million primarily due to an increase in net investment income principally resulting from an increase in the market value of trading securities in 2016 as compared to a decrease in the market value of trading securities in 2015.
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
Federated Reports Q4 and Full-Year 2016 Earnings | Page 3 of 11 | |
redemptions, market appreciation or depreciation, revenues, fee waivers, expenses and regulatory changes, can significantly impact Federated's business activity levels and financial results. Risk factors and uncertainties that can influence Federated's financial results are discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission (SEC).
Voluntary yield-related fee waivers and their resulting negative impact could vary significantly in the future as they are contingent on a number of variables including, but not limited to, changes in assets within the money market funds, yields on instruments available for purchase by the money market funds, actions by the Federal Reserve, the U.S. Department of the Treasury, the SEC, the Financial Stability Oversight Council, the U.S. Department of Labor and other governmental entities, changes in fees and expenses of the money market funds, changes in the mix of money market customer assets, changes in customer relationships, changes in the money market product structures and offerings, demand for competing products, changes in distribution models, changes in the distribution fee arrangements with third parties, Federated’s willingness to continue the fee waivers and changes in the extent to which the impact of the waivers is shared by third parties.
Unaudited Money Market Fund Yield Waiver Impact to the Consolidated Statements of Income
(in millions)
Quarter Ended | Change Q4 2015 to Q4 2016 | Quarter Ended | Change Q3 2016 to Q4 2016 | Year Ended | Change 2015 to 2016 | ||||||||||||||||||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||||||||||||||||||||
Investment advisory fees | $ | (3.2 | ) | $ | (37.5 | ) | $ | 34.3 | $ | (5.1 | ) | $ | 1.9 | $ | (29.5 | ) | $ | (202.5 | ) | $ | 173.0 | ||||||||||
Other service fees | (7.8 | ) | (34.5 | ) | 26.7 | (12.9 | ) | 5.1 | (58.3 | ) | (131.1 | ) | 72.8 | ||||||||||||||||||
Total revenue | $ | (11.0 | ) | $ | (72.0 | ) | $ | 61.0 | $ | (18.0 | ) | $ | 7.0 | $ | (87.8 | ) | $ | (333.6 | ) | $ | 245.8 | ||||||||||
Less: Reduction in distribution expense | 7.6 | 54.5 | (46.9 | ) | 13.8 | (6.2 | ) | 65.8 | 240.6 | (174.8 | ) | ||||||||||||||||||||
Operating income | $ | (3.4 | ) | $ | (17.5 | ) | $ | 14.1 | $ | (4.2 | ) | $ | 0.8 | $ | (22.0 | ) | $ | (93.0 | ) | $ | 71.0 | ||||||||||
Less: Reduction in noncontrolling interest | 0.0 | 1.1 | (1.1 | ) | 0.0 | 0.0 | 0.0 | 7.1 | (7.1 | ) | |||||||||||||||||||||
Pre-tax impact | $ | (3.4 | ) | $ | (16.4 | ) | $ | 13.0 | $ | (4.2 | ) | $ | 0.8 | $ | (22.0 | ) | $ | (85.9 | ) | $ | 63.9 | ||||||||||
Federated will host an earnings conference call at 9 a.m. Eastern on Jan. 27, 2017. 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 from approximately 12:30 p.m. Eastern on Jan. 27, 2017 through Feb. 3, 2017 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 10191.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $365.9 billion in assets as of Dec. 31, 2016. With 124 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 8,500 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top 5 percent of equity fund managers in the industry, the top 7 percent of money market fund managers and the top 10 percent of fixed-income fund managers1. For more information, visit FederatedInvestors.com.
###
1) Strategic Insight, Nov. 30, 2016. 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.
Federated Reports Q4 and Full-Year 2016 Earnings | Page 4 of 11 | |
Certain statements in this press release, such as those related to the level of fee waivers and expenses incurred by the company, product demand and performance, investor interest and preferences, asset flows and mix, changes in product structure, fee arrangements with customers, distribution expense, regulatory changes and market conditions constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, which could vary significantly depending on a variety of factors identified above, and include the ability of the company to sustain product demand and asset flows and mix, which could vary significantly depending on market conditions, investment performance and investor behavior. Other risks and uncertainties 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.
Federated Reports Q4 and Full-Year 2016 Earnings | Page 5 of 11 | |
Unaudited Condensed Consolidated Statements of Income | |||||||||||||
(in thousands, except per share data) | |||||||||||||
Quarter Ended | % Change Q4 2015 to Q4 2016 | Quarter Ended | % Change Q3 2016 to Q4 2016 | ||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2016 | |||||||||||
Revenue | |||||||||||||
Investment advisory fees, net | $ | 195,063 | $ | 166,441 | 17 | % | $ | 197,253 | (1 | )% | |||
Administrative service fees, net—affiliates | 51,466 | 53,561 | (4 | ) | 53,577 | (4 | ) | ||||||
Other service fees, net | 42,803 | 22,896 | 87 | 42,734 | 0 | ||||||||
Other, net | 572 | 741 | (23 | ) | 1,056 | (46 | ) | ||||||
Total Revenue | 289,904 | 243,639 | 19 | 294,620 | (2 | ) | |||||||
Operating Expenses | |||||||||||||
Distribution | 101,785 | 66,069 | 54 | 98,740 | 3 | ||||||||
Compensation and related | 68,740 | 68,870 | 0 | 75,731 | (9 | ) | |||||||
Systems and communications | 7,876 | 7,096 | 11 | 7,763 | 1 | ||||||||
Professional service fees | 7,562 | 6,100 | 24 | 7,360 | 3 | ||||||||
Office and occupancy | 7,156 | 6,591 | 9 | 6,660 | 7 | ||||||||
Advertising and promotional | 3,771 | 3,645 | 3 | 3,371 | 12 | ||||||||
Travel and related | 3,501 | 3,935 | (11 | ) | 3,165 | 11 | |||||||
Other | 4,691 | 4,448 | 5 | 3,194 | 47 | ||||||||
Total Operating Expenses | 205,082 | 166,754 | 23 | 205,984 | 0 | ||||||||
Operating Income | 84,822 | 76,885 | 10 | 88,636 | (4 | ) | |||||||
Nonoperating Income (Expenses) | |||||||||||||
Investment income, net | 1,706 | 1,541 | 11 | 3,889 | (56 | ) | |||||||
Debt expense | (1,055 | ) | (974 | ) | 8 | (1,039 | ) | 2 | |||||
Other, net | 48 | 4 | NM | 19 | NM | ||||||||
Total Nonoperating Income, net | 699 | 571 | 22 | 2,869 | (76 | ) | |||||||
Income before income taxes | 85,521 | 77,456 | 10 | 91,505 | (7 | ) | |||||||
Income tax provision | 28,292 | 28,287 | 0 | 32,597 | (13 | ) | |||||||
Net income including the noncontrolling interests in subsidiaries | 57,229 | 49,169 | 16 | 58,908 | (3 | ) | |||||||
Less: Net income attributable to the noncontrolling interests in subsidiaries | 1,387 | 1,559 | NM | 3,983 | NM | ||||||||
Net Income | $ | 55,842 | $ | 47,610 | 17 | % | $ | 54,925 | 2 | % | |||
Amounts Attributable to Federated Investors, Inc. | |||||||||||||
Earnings Per Share1 | |||||||||||||
Basic and diluted | $ | 0.52 | $ | 0.46 | 13 | % | $ | 0.54 | (4 | )% | |||
Weighted-average shares outstanding | |||||||||||||
Basic | 98,280 | 100,088 | 98,805 | ||||||||||
Diluted | 98,280 | 100,090 | 98,806 | ||||||||||
Dividends declared per share | $ | 1.25 | $ | 0.25 | $ | 0.25 | |||||||
1) | 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 $4.5 million, $1.8 million and $2.0 million available to unvested restricted shareholders for the quarterly periods ended Dec. 31, 2016, Dec. 31, 2015 and Sept. 30, 2016, respectively, was excluded from the computation of earnings per share. |
Federated Reports Q4 and Full-Year 2016 Earnings | Page 6 of 11 | |
Unaudited Condensed Consolidated Statements of Income | |||||||||||
(in thousands, except per share data) | |||||||||||
Year Ended | |||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | % Change | |||||||||
Revenue | |||||||||||
Investment advisory fees, net | $ | 766,825 | $ | 626,325 | 22 | % | |||||
Administrative service fees, net—affiliates | 211,646 | 211,458 | 0 | ||||||||
Other service fees, net | 161,378 | 84,910 | 90 | ||||||||
Other, net | 3,522 | 3,916 | (10 | ) | |||||||
Total Revenue | 1,143,371 | 926,609 | 23 | ||||||||
Operating Expenses | |||||||||||
Distribution | 383,648 | 232,445 | 65 | ||||||||
Compensation and related | 296,466 | 286,932 | 3 | ||||||||
Systems and communications | 31,271 | 27,629 | 13 | ||||||||
Professional service fees | 27,447 | 29,090 | (6 | ) | |||||||
Office and occupancy | 27,379 | 26,706 | 3 | ||||||||
Advertising and promotional | 14,522 | 13,930 | 4 | ||||||||
Travel and related | 13,228 | 13,409 | (1 | ) | |||||||
Other | 13,727 | 17,022 | (19 | ) | |||||||
Total Operating Expenses | 807,688 | 647,163 | 25 | ||||||||
Operating Income | 335,683 | 279,446 | 20 | ||||||||
Nonoperating Income (Expenses) | |||||||||||
Investment income (loss), net | 9,364 | (208 | ) | NM | |||||||
Debt expense | (4,173 | ) | (4,299 | ) | (3 | ) | |||||
Other, net | 60 | (33 | ) | NM | |||||||
Total Nonoperating Income (Expenses), net | 5,251 | (4,540 | ) | 216 | |||||||
Income before income taxes | 340,934 | 274,906 | 24 | ||||||||
Income tax provision | 119,420 | 102,920 | 16 | ||||||||
Net income including the noncontrolling interests in subsidiaries | 221,514 | 171,986 | 29 | ||||||||
Less: Net income attributable to the noncontrolling interests in subsidiaries | 12,595 | 2,179 | NM | ||||||||
Net Income | $ | 208,919 | $ | 169,807 | 23 | % | |||||
Amounts Attributable to Federated Investors, Inc. | |||||||||||
Earnings Per Share1 | |||||||||||
Basic and diluted | $ | 2.03 | $ | 1.62 | 25 | % | |||||
Weighted-average shares outstanding | |||||||||||
Basic | 99,116 | 100,475 | |||||||||
Diluted | 99,117 | 100,477 | |||||||||
Dividends declared per share | $ | 2.00 | $ | 1.00 | |||||||
1) | 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 $7.6 million and $6.6 million available to unvested restricted shareholders for the years ended Dec. 31, 2016 and Dec. 31, 2015, respectively, was excluded from the computation of earnings per share. |
Federated Reports Q4 and Full-Year 2016 Earnings | Page 7 of 11 | |
Unaudited Condensed Consolidated Balance Sheets | ||||||
(in thousands) | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Assets | ||||||
Cash and other investments | $ | 301,149 | $ | 346,815 | ||
Other current assets | 58,611 | 49,013 | ||||
Intangible assets, net, including goodwill | 733,137 | 734,492 | ||||
Other long-term assets | 62,210 | 56,883 | ||||
Total Assets | $ | 1,155,107 | $ | 1,187,203 | ||
Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||
Current liabilities | $ | 162,538 | $ | 159,208 | ||
Long-term debt | 165,750 | 191,250 | ||||
Other long-term liabilities | 199,673 | 179,039 | ||||
Redeemable noncontrolling interests | 31,362 | 8,734 | ||||
Equity excluding treasury stock | 851,166 | 840,911 | ||||
Treasury stock | (255,382 | ) | (191,939 | ) | ||
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ | 1,155,107 | $ | 1,187,203 | ||
Federated Reports Q4 and Full-Year 2016 Earnings | Page 8 of 11 | |
Unaudited Changes in Equity and Fixed-Income Fund and Separate Account Assets
(in millions)
Quarter Ended | Year Ended | |||||||||||||||
Dec. 31, 2016 | Sept. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||||
Equity funds | ||||||||||||||||
Beginning assets | $ | 37,777 | $ | 37,076 | $ | 33,273 | $ | 34,125 | $ | 33,141 | ||||||
Sales | 2,050 | 3,011 | 2,143 | 11,617 | 9,801 | |||||||||||
Redemptions | (3,462 | ) | (2,883 | ) | (2,279 | ) | (11,159 | ) | (8,159 | ) | ||||||
Net (redemptions) sales | (1,412 | ) | 128 | (136 | ) | 458 | 1,642 | |||||||||
Net exchanges | 38 | (26 | ) | (23 | ) | (41 | ) | (88 | ) | |||||||
Market gains and losses/reinvestments1 | (172 | ) | 599 | 1,011 | 1,689 | (570 | ) | |||||||||
Ending assets | $ | 36,231 | $ | 37,777 | $ | 34,125 | $ | 36,231 | $ | 34,125 | ||||||
Equity separate accounts2 | ||||||||||||||||
Beginning assets | $ | 26,337 | $ | 24,785 | $ | 18,683 | $ | 19,431 | $ | 18,285 | ||||||
Sales3 | 2,299 | 2,968 | 1,192 | 10,773 | 5,790 | |||||||||||
Redemptions3 | (1,825 | ) | (1,262 | ) | (1,187 | ) | (5,469 | ) | (4,575 | ) | ||||||
Net sales3 | 474 | 1,706 | 5 | 5,304 | 1,215 | |||||||||||
Net exchanges | (1 | ) | 1 | 4 | 0 | 3 | ||||||||||
Market gains and losses4 | (660 | ) | (155 | ) | 739 | 1,415 | (72 | ) | ||||||||
Ending assets | $ | 26,150 | $ | 26,337 | $ | 19,431 | $ | 26,150 | $ | 19,431 | ||||||
Total equity2 | ||||||||||||||||
Beginning assets | $ | 64,114 | $ | 61,861 | $ | 51,956 | $ | 53,556 | $ | 51,426 | ||||||
Sales3 | 4,349 | 5,979 | 3,335 | 22,390 | 15,591 | |||||||||||
Redemptions3 | (5,287 | ) | (4,145 | ) | (3,466 | ) | (16,628 | ) | (12,734 | ) | ||||||
Net (redemptions) sales3 | (938 | ) | 1,834 | (131 | ) | 5,762 | 2,857 | |||||||||
Net exchanges | 37 | (25 | ) | (19 | ) | (41 | ) | (85 | ) | |||||||
Market gains and losses/reinvestments1 | (832 | ) | 444 | 1,750 | 3,104 | (642 | ) | |||||||||
Ending assets | $ | 62,381 | $ | 64,114 | $ | 53,556 | $ | 62,381 | $ | 53,556 | ||||||
Fixed-income funds | ||||||||||||||||
Beginning assets | $ | 39,796 | $ | 38,611 | $ | 38,982 | $ | 37,989 | $ | 40,456 | ||||||
Sales | 4,182 | 3,641 | 3,477 | 14,624 | 14,496 | |||||||||||
Redemptions | (3,988 | ) | (2,971 | ) | (4,218 | ) | (14,403 | ) | (16,588 | ) | ||||||
Net sales (redemptions) | 194 | 670 | (741 | ) | 221 | (2,092 | ) | |||||||||
Net exchanges | (57 | ) | 19 | 2 | (69 | ) | 33 | |||||||||
Market gains and losses/reinvestments1 | (499 | ) | 496 | (254 | ) | 1,293 | (408 | ) | ||||||||
Ending assets | $ | 39,434 | $ | 39,796 | $ | 37,989 | $ | 39,434 | $ | 37,989 | ||||||
Fixed-income separate accounts2 | ||||||||||||||||
Beginning assets | $ | 12,048 | $ | 11,714 | $ | 13,083 | $ | 13,130 | $ | 12,251 | ||||||
Sales3 | 460 | 360 | 332 | 1,164 | 1,963 | |||||||||||
Redemptions3 | (380 | ) | (284 | ) | (244 | ) | (3,097 | ) | (1,061 | ) | ||||||
Net sales (redemptions)3 | 80 | 76 | 88 | (1,933 | ) | 902 | ||||||||||
Net exchanges | 1 | 0 | 0 | 1 | (6 | ) | ||||||||||
Market gains and losses4 | (249 | ) | 258 | (41 | ) | 682 | (17 | ) | ||||||||
Ending assets | $ | 11,880 | $ | 12,048 | $ | 13,130 | $ | 11,880 | $ | 13,130 | ||||||
Total fixed income2 | ||||||||||||||||
Beginning assets | $ | 51,844 | $ | 50,325 | $ | 52,065 | $ | 51,119 | $ | 52,707 | ||||||
Sales3 | 4,642 | 4,001 | 3,809 | 15,788 | 16,459 | |||||||||||
Redemptions3 | (4,368 | ) | (3,255 | ) | (4,462 | ) | (17,500 | ) | (17,649 | ) | ||||||
Net sales (redemptions)3 | 274 | 746 | (653 | ) | (1,712 | ) | (1,190 | ) | ||||||||
Net exchanges | (56 | ) | 19 | 2 | (68 | ) | 27 | |||||||||
Market gains and losses/reinvestments1 | (748 | ) | 754 | (295 | ) | 1,975 | (425 | ) | ||||||||
Ending assets | $ | 51,314 | $ | 51,844 | $ | 51,119 | $ | 51,314 | $ | 51,119 | ||||||
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, sub-advised funds and other managed products.
3) For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses.
4) Reflects the approximate changes in the fair value of the securities held by the portfolios.
Federated Reports Q4 and Full-Year 2016 Earnings | Page 9 of 11 | |
Unaudited Total Changes in Equity and Fixed-Income Assets
(in millions)
Quarter Ended | Year Ended | |||||||||||||||
Dec. 31, 2016 | Sept. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||||
Funds | ||||||||||||||||
Beginning assets | $ | 77,573 | $ | 75,687 | $ | 72,255 | $ | 72,114 | $ | 73,597 | ||||||
Sales | 6,232 | 6,652 | 5,620 | 26,241 | 24,297 | |||||||||||
Redemptions | (7,450 | ) | (5,854 | ) | (6,497 | ) | (25,562 | ) | (24,747 | ) | ||||||
Net (redemptions) sales | (1,218 | ) | 798 | (877 | ) | 679 | (450 | ) | ||||||||
Net exchanges | (19 | ) | (7 | ) | (21 | ) | (110 | ) | (55 | ) | ||||||
Market gains and losses/reinvestments1 | (671 | ) | 1,095 | 757 | 2,982 | (978 | ) | |||||||||
Ending assets | $ | 75,665 | $ | 77,573 | $ | 72,114 | $ | 75,665 | $ | 72,114 | ||||||
Separate accounts2 | ||||||||||||||||
Beginning assets | $ | 38,385 | $ | 36,499 | $ | 31,766 | $ | 32,561 | $ | 30,536 | ||||||
Sales3 | 2,759 | 3,328 | 1,524 | 11,937 | 7,753 | |||||||||||
Redemptions3 | (2,205 | ) | (1,546 | ) | (1,431 | ) | (8,566 | ) | (5,636 | ) | ||||||
Net sales3 | 554 | 1,782 | 93 | 3,371 | 2,117 | |||||||||||
Net exchanges | 0 | 1 | 4 | 1 | (3 | ) | ||||||||||
Market gains and losses4 | (909 | ) | 103 | 698 | 2,097 | (89 | ) | |||||||||
Ending assets | $ | 38,030 | $ | 38,385 | $ | 32,561 | $ | 38,030 | $ | 32,561 | ||||||
Total assets 2 | ||||||||||||||||
Beginning assets | $ | 115,958 | $ | 112,186 | $ | 104,021 | $ | 104,675 | $ | 104,133 | ||||||
Sales3 | 8,991 | 9,980 | 7,144 | 38,178 | 32,050 | |||||||||||
Redemptions3 | (9,655 | ) | (7,400 | ) | (7,928 | ) | (34,128 | ) | (30,383 | ) | ||||||
Net (redemptions) sales 3 | (664 | ) | 2,580 | (784 | ) | 4,050 | 1,667 | |||||||||
Net exchanges | (19 | ) | (6 | ) | (17 | ) | (109 | ) | (58 | ) | ||||||
Market gains and losses/reinvestments1 | (1,580 | ) | 1,198 | 1,455 | 5,079 | (1,067 | ) | |||||||||
Ending assets | $ | 113,695 | $ | 115,958 | $ | 104,675 | $ | 113,695 | $ | 104,675 | ||||||
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, sub-advised funds and other managed products.
3) For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses.
4) Reflects the approximate changes in the fair value of the securities held by the portfolios.
Federated Reports Q4 and Full-Year 2016 Earnings | Page 10 of 11 | |
(unaudited) | |||||||||||||||
MANAGED ASSETS (in millions) | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | Dec. 31, 2015 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 62,381 | $ | 64,114 | $ | 61,861 | $ | 56,485 | $ | 53,556 | |||||
Fixed-income | 51,314 | 51,844 | 50,325 | 51,178 | 51,119 | ||||||||||
Money market | 252,213 | 248,366 | 254,992 | 262,030 | 256,437 | ||||||||||
Total Managed Assets | $ | 365,908 | $ | 364,324 | $ | 367,178 | $ | 369,693 | $ | 361,112 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 36,231 | $ | 37,777 | $ | 37,076 | $ | 34,935 | $ | 34,125 | |||||
Fixed-income | 39,434 | 39,796 | 38,611 | 37,826 | 37,989 | ||||||||||
Money market | 206,411 | 209,382 | 218,107 | 224,681 | 221,615 | ||||||||||
Total Fund Assets | $ | 282,076 | $ | 286,955 | $ | 293,794 | $ | 297,442 | $ | 293,729 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 26,150 | $ | 26,337 | $ | 24,785 | $ | 21,550 | $ | 19,431 | |||||
Fixed-income | 11,880 | 12,048 | 11,714 | 13,352 | 13,130 | ||||||||||
Money market | 45,802 | 38,984 | 36,885 | 37,349 | 34,822 | ||||||||||
Total Separate Accounts | $ | 83,832 | $ | 77,369 | $ | 73,384 | $ | 72,251 | $ | 67,383 | |||||
Total Managed Assets | $ | 365,908 | $ | 364,324 | $ | 367,178 | $ | 369,693 | $ | 361,112 | |||||
AVERAGE MANAGED ASSETS | Quarter Ended | ||||||||||||||
(in millions) | Dec. 31, 2016 | Sept. 30, 2016 | June 30, 2016 | March 31, 2016 | Dec. 31, 2015 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 62,575 | $ | 63,682 | $ | 58,680 | $ | 52,786 | $ | 54,097 | |||||
Fixed-income | 51,526 | 51,446 | 50,793 | 50,880 | 51,922 | ||||||||||
Money market | 244,197 | 250,292 | 254,693 | 260,203 | 247,986 | ||||||||||
Total Avg. Managed Assets | $ | 358,298 | $ | 365,420 | $ | 364,166 | $ | 363,869 | $ | 354,005 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 36,667 | $ | 37,902 | $ | 35,891 | $ | 32,921 | $ | 34,726 | |||||
Fixed-income | 39,571 | 39,527 | 38,214 | 37,776 | 38,779 | ||||||||||
Money market | 203,474 | 213,078 | 217,226 | 221,848 | 217,031 | ||||||||||
Total Avg. Fund Assets | $ | 279,712 | $ | 290,507 | $ | 291,331 | $ | 292,545 | $ | 290,536 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 25,908 | $ | 25,780 | $ | 22,789 | $ | 19,865 | $ | 19,371 | |||||
Fixed-income | 11,955 | 11,919 | 12,579 | 13,104 | 13,143 | ||||||||||
Money market | 40,723 | 37,214 | 37,467 | 38,355 | 30,955 | ||||||||||
Total Avg. Separate Accounts | $ | 78,586 | $ | 74,913 | $ | 72,835 | $ | 71,324 | $ | 63,469 | |||||
Total Avg. Managed Assets | $ | 358,298 | $ | 365,420 | $ | 364,166 | $ | 363,869 | $ | 354,005 | |||||
Federated Reports Q4 and Full-Year 2016 Earnings | Page 11 of 11 | |
(unaudited) | ||||||||
AVERAGE MANAGED ASSETS | Year Ended | |||||||
(in millions) | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
By Asset Class | ||||||||
Equity | $ | 59,431 | $ | 54,149 | ||||
Fixed-income | 51,161 | 52,805 | ||||||
Money market | 252,346 | 246,539 | ||||||
Total Avg. Managed Assets | $ | 362,938 | $ | 353,493 | ||||
By Product Type | ||||||||
Funds: | ||||||||
Equity | $ | 35,846 | $ | 35,017 | ||||
Fixed-income | 38,772 | 39,973 | ||||||
Money market | 213,906 | 213,694 | ||||||
Total Avg. Fund Assets | $ | 288,524 | $ | 288,684 | ||||
Separate Accounts: | ||||||||
Equity | $ | 23,585 | $ | 19,132 | ||||
Fixed-income | 12,389 | 12,832 | ||||||
Money market | 38,440 | 32,845 | ||||||
Total Avg. Separate Accounts | $ | 74,414 | $ | 64,809 | ||||
Total Avg. Managed Assets | $ | 362,938 | $ | 353,493 | ||||