Attached files
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| 8-K - 8-K - FEDERATED HERMES, INC. | a8-kx2017q3epr.htm |
Exhibit 99.1
Federated Investors, Inc. Reports Third Quarter 2017 Earnings
• | Q3 2017 EPS of $0.56 up 4 percent from $0.54 in Q3 2016 |
• | Equity assets reach record $67.1 billion |
• | Board declares $0.25 per share dividend |
(PITTSBURGH, Pa., Oct. 26, 2017) — Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.56 for Q3 2017, compared to $0.54 for the same quarter last year on net income of $56.4 million for Q3 2017, compared to $54.9 million for Q3 2016. Federated reported YTD 2017 EPS of $1.57, compared to $1.48 for the same period in 2016 on YTD 2017 net income of $159.5 million compared to $153.1 million for the same period last year.
Federated's total managed assets were $363.7 billion at Sept. 30, 2017, down $0.6 billion from $364.3 billion at Sept. 30, 2016 and up $3.3 billion or 1 percent from $360.4 billion at June 30, 2017. Lower money market assets were partially offset by higher equity and fixed-income assets at the end of Q3 2017 compared to the end of Q3 2016. Average managed assets for Q3 2017 were $360.5 billion, down $4.9 billion or 1 percent from $365.4 billion reported for Q3 2016 and up $0.5 billion from $360.0 billion reported for Q2 2017.
"At the end of the third quarter, 85 percent of Federated’s rated domestic bond-fund assets had outperformed their category averages on a one-year basis," said J. Christopher Donahue, president and chief executive officer. "Federated continued to see positive flows in our flagship multisector bond fund, the $7.5 billion Federated Total Return Bond Fund, a strategy that incorporates our firm's highest-conviction ideas about different fixed-income asset classes."
Federated's board of directors declared a dividend of $0.25 per share. The dividend is payable on Nov. 15, 2017 to shareholders of record as of Nov. 8, 2017. During Q3 2017, Federated purchased 551,224 shares of Federated class B common stock for $14.1 million.
Federated's equity assets were a record $67.1 billion at Sept. 30, 2017, up $3.0 billion or 5 percent from $64.1 billion at Sept. 30, 2016 and up $1.3 billion or 2 percent from $65.8 billion at June 30, 2017. Assets in Federated's domestic and international Strategic Value Dividend strategies were a record $40.6 billion at Sept. 30, 2017, up $2.3 billion or 6 percent from $38.3 billion at Sept. 30, 2016 and up $0.6 billion or 2 percent from $40.0 billion at June 30, 2017. Top-selling equity funds during Q3 2017 on a net basis were led by Federated MDT Small Cap Core Fund, Federated MDT Small Cap Growth Fund, Federated International Leaders Fund and Federated Kaufmann Small Cap Fund.
Federated's fixed-income assets were $52.8 billion at Sept. 30, 2017, up $1.0 billion or 2 percent from $51.8 billion at Sept. 30, 2016 and up $0.3 billion or 1 percent from $52.5 billion at June 30, 2017. Top-selling fixed-income funds during Q3 2017 on a net basis included Federated Total Return Bond Fund, Federated Institutional High Yield Bond Fund and various short-duration strategies.
Money market assets were $243.8 billion at Sept. 30, 2017, down $4.6 billion or 2 percent from $248.4 billion at Sept. 30, 2016 and up $1.7 billion or 1 percent from $242.1 billion at June 30, 2017. Money market fund assets were $177.9 billion at
MEDIA: | MEDIA: | ANALYSTS: |
Ed Costello 412-288-7538 | Meghan McAndrew 412-288-8103 | Ray Hanley 412-288-1920 |
Federated Reports Q3 2017 Earnings | Page 2 of 10 | |
Sept. 30, 2017, down $31.5 billion or 15 percent from $209.4 billion at Sept. 30, 2016 and up $4.6 billion or 3 percent from $173.3 billion at June 30, 2017. Since Sept. 30, 2016, approximately $21 billion in money market assets have transitioned from Federated funds to Federated separate accounts. Federated's money market separate account assets were $66.0 billion at Sept. 30, 2017, up $27.0 billion or 69 percent from $39.0 billion at Sept. 30, 2016 and down $2.8 billion or 4 percent from $68.8 billion at June 30, 2017.
Financial Summary
Q3 2017 vs. Q3 2016
Revenue decreased by $16.3 million or 6 percent primarily due to lower average money market assets and a decrease in revenue resulting from a change in a customer relationship. The decrease in revenue was partially offset by 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 an increase in revenue from higher average equity and fixed-income assets.
During Q3 2017, Federated derived 60 percent of its revenue from equity and fixed-income assets (43 percent from equity assets and 17 percent from fixed-income assets) and 40 percent from money market assets.
Operating expenses decreased by $16.4 million or 8 percent primarily due to a decrease in distribution expenses related to lower average money market fund assets and a change in a customer relationship, partially offset by an increase in distribution expenses related to a decrease in voluntary yield-related fee waivers. The decrease in operating expenses is also attributable to a decrease in compensation and related expenses resulting from lower incentive compensation.
Q3 2017 vs. Q2 2017
Revenue increased $5.5 million or 2 percent primarily due to having one more day in Q3 2017 vs. Q2 2017 and an increase in revenue from higher average equity assets.
YTD 2017 vs. YTD 2016
Revenue decreased by $28.9 million or 3 percent primarily due to a decrease in revenue from lower average money market assets and a decrease in revenue resulting from a change in a customer relationship. The decrease in revenue was partially offset by a decrease in voluntary yield-related fee waivers and an increase in revenue from higher average equity and fixed-income assets.
For the first nine months of 2017, Federated derived 59 percent of its revenue from equity and fixed-income assets (42 percent from equity assets and 17 percent from fixed-income assets) and 41 percent from money market assets.
Operating expenses decreased by $28.7 million or 5 percent primarily due to a decrease in distribution expenses related to lower average money market fund assets and a change in a customer relationship, partially offset by an increase in distribution expenses related to a decrease in voluntary yield-related fee waivers. The decrease in operating expenses is also attributable to a decrease in compensation and related expenses resulting from lower incentive compensation.
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, 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
Federated Reports Q3 2017 Earnings | Page 3 of 10 | |
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. 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 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. 27, 2017 until Nov. 3, 2017 by calling 877-481-4010 (domestic) or 919-882-2331 (international) and entering access code 20651. 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 $363.7 billion in assets as of Sept. 30, 2017. With 119 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 8,500 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 fifth-largest SMA manager2. For more information, visit FederatedInvestors.com.
###
1) Strategic Insight, Sept. 30, 2017. Based on assets under management in open-end funds.
2) Money Management Institute/Dover Financial Research, Q2 2017.
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, performance, investor preferences and demand, asset flows and mix, fee arrangements with customers 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 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.
Federated Reports Q3 2017 Earnings | Page 4 of 10 | |
Unaudited Condensed Consolidated Statements of Income | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
Quarter Ended | % Change Q3 2016 to Q3 2017 | Quarter Ended | % Change Q2 2017 to Q3 2017 | |||||||||||
Sept. 30, 2017 | Sept. 30, 2016 | June 30, 2017 | ||||||||||||
Revenue | ||||||||||||||
Investment advisory fees, net | $ | 184,886 | $ | 197,253 | (6 | )% | $ | 179,322 | 3 | % | ||||
Administrative service fees, net—affiliates | 47,461 | 53,577 | (11 | ) | 45,601 | 4 | ||||||||
Other service fees, net | 45,560 | 42,734 | 7 | 47,442 | (4 | ) | ||||||||
Other, net | 408 | 1,056 | (61 | ) | 431 | (5 | ) | |||||||
Total Revenue | 278,315 | 294,620 | (6 | ) | 272,796 | 2 | ||||||||
Operating Expenses | ||||||||||||||
Distribution | 84,838 | 98,740 | (14 | ) | 87,174 | (3 | ) | |||||||
Compensation and related | 72,454 | 75,731 | (4 | ) | 71,370 | 2 | ||||||||
Systems and communications | 7,992 | 7,763 | 3 | 8,041 | (1 | ) | ||||||||
Office and occupancy | 7,293 | 6,660 | 10 | 7,161 | 2 | |||||||||
Professional service fees | 6,563 | 7,360 | (11 | ) | 5,728 | 15 | ||||||||
Travel and related | 3,258 | 3,165 | 3 | 2,958 | 10 | |||||||||
Advertising and promotional | 2,345 | 3,371 | (30 | ) | 3,095 | (24 | ) | |||||||
Other | 4,882 | 3,194 | 53 | 3,058 | 60 | |||||||||
Total Operating Expenses | 189,625 | 205,984 | (8 | ) | 188,585 | 1 | ||||||||
Operating Income | 88,690 | 88,636 | 0 | 84,211 | 5 | |||||||||
Nonoperating Income (Expenses) | ||||||||||||||
Investment income, net | 3,556 | 3,889 | (9 | ) | 3,937 | (10 | ) | |||||||
Debt expense | (1,250 | ) | (1,039 | ) | 20 | (1,182 | ) | 6 | ||||||
Other, net | 1 | 19 | (95 | ) | (33 | ) | 103 | |||||||
Total Nonoperating Income, net | 2,307 | 2,869 | (20 | ) | 2,722 | (15 | ) | |||||||
Income before income taxes | 90,997 | 91,505 | (1 | ) | 86,933 | 5 | ||||||||
Income tax provision | 33,756 | 32,597 | 4 | 32,274 | 5 | |||||||||
Net income including the noncontrolling interests in subsidiaries | 57,241 | 58,908 | (3 | ) | 54,659 | 5 | ||||||||
Less: Net income attributable to the noncontrolling interests in subsidiaries | 802 | 3,983 | (80 | ) | 1,208 | (34 | ) | |||||||
Net Income | $ | 56,439 | $ | 54,925 | 3 | % | $ | 53,451 | 6 | % | ||||
Amounts Attributable to Federated Investors, Inc. | ||||||||||||||
Earnings Per Share1 | ||||||||||||||
Basic and diluted | $ | 0.56 | $ | 0.54 | 4 | % | $ | 0.53 | 6 | % | ||||
Weighted-average shares outstanding | ||||||||||||||
Basic | 97,128 | 98,805 | 97,581 | |||||||||||
Diluted | 97,129 | 98,806 | 97,582 | |||||||||||
Dividends declared per share | $ | 0.25 | $ | 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 $2.2 million, $2.0 million and $2.2 million available to unvested restricted shareholders for the quarterly periods ended Sept. 30, 2017, Sept. 30, 2016 and June 30, 2017, respectively, was excluded from the computation of earnings per share.
Federated Reports Q3 2017 Earnings | Page 5 of 10 | |
Unaudited Condensed Consolidated Statements of Income | ||||||||
(in thousands, except per share data) | ||||||||
Nine Months Ended | ||||||||
Sept. 30, 2017 | Sept. 30, 2016 | % Change | ||||||
Revenue | ||||||||
Investment advisory fees, net | $ | 545,525 | $ | 571,762 | (5 | )% | ||
Administrative service fees, net—affiliates | 139,763 | 160,181 | (13 | ) | ||||
Other service fees, net | 138,054 | 118,575 | 16 | |||||
Other, net | 1,270 | 2,949 | (57 | ) | ||||
Total Revenue | 824,612 | 853,467 | (3 | ) | ||||
Operating Expenses | ||||||||
Distribution | 262,371 | 281,862 | (7 | ) | ||||
Compensation and related | 217,226 | 227,726 | (5 | ) | ||||
Systems and communications | 24,258 | 23,395 | 4 | |||||
Office and occupancy | 21,805 | 20,223 | 8 | |||||
Professional service fees | 18,971 | 19,886 | (5 | ) | ||||
Travel and related | 9,150 | 9,727 | (6 | ) | ||||
Advertising and promotional | 8,396 | 10,751 | (22 | ) | ||||
Other | 11,761 | 9,036 | 30 | |||||
Total Operating Expenses | 573,938 | 602,606 | (5 | ) | ||||
Operating Income | 250,674 | 250,861 | 0 | |||||
Nonoperating Income (Expenses) | ||||||||
Investment income, net | 11,707 | 7,657 | 53 | |||||
Debt expense | (3,534 | ) | (3,118 | ) | 13 | |||
Other, net | (32 | ) | 13 | (346 | ) | |||
Total Nonoperating Income, net | 8,141 | 4,552 | 79 | |||||
Income before income taxes | 258,815 | 255,413 | 1 | |||||
Income tax provision | 95,888 | 91,128 | 5 | |||||
Net income including the noncontrolling interests in subsidiaries | 162,927 | 164,285 | (1 | ) | ||||
Less: Net income attributable to the noncontrolling interests in subsidiaries | 3,396 | 11,208 | (70 | ) | ||||
Net Income | $ | 159,531 | $ | 153,077 | 4 | % | ||
Amounts Attributable to Federated Investors, Inc. | ||||||||
Earnings Per Share1 | ||||||||
Basic and diluted | $ | 1.57 | $ | 1.48 | 6 | % | ||
Weighted-average shares outstanding | ||||||||
Basic | 97,521 | 99,397 | ||||||
Diluted | 97,522 | 99,398 | ||||||
Dividends declared per share | $ | 0.75 | $ | 0.75 | ||||
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 $6.3 million and $6.0 million available to unvested restricted shareholders for the nine months ended Sept. 30, 2017 and Sept. 30, 2016, respectively, was excluded from the computation of earnings per share.
Federated Reports Q3 2017 Earnings | Page 6 of 10 | |
Unaudited Condensed Consolidated Balance Sheets | ||||||
(in thousands) | Sept. 30, 2017 | Dec. 31, 2016 | ||||
Assets | ||||||
Cash and other investments | $ | 328,271 | $ | 301,149 | ||
Other current assets | 57,418 | 58,611 | ||||
Intangible assets, net, including goodwill | 737,059 | 733,137 | ||||
Other long-term assets | 58,760 | 62,210 | ||||
Total Assets | $ | 1,181,508 | $ | 1,155,107 | ||
Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||
Current liabilities | $ | 115,814 | $ | 162,538 | ||
Long-term debt | 175,000 | 165,750 | ||||
Other long-term liabilities | 207,906 | 199,673 | ||||
Redeemable noncontrolling interests | 28,991 | 31,362 | ||||
Equity excluding treasury stock | 937,279 | 851,166 | ||||
Treasury stock | (283,482 | ) | (255,382 | ) | ||
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ | 1,181,508 | $ | 1,155,107 | ||
Federated Reports Q3 2017 Earnings | Page 7 of 10 | |
Unaudited Changes in Equity and Fixed-Income Fund and Separate Account Assets
(in millions)
Quarter Ended | Nine Months Ended | |||||||||||||||
Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | ||||||||||||
Equity funds | ||||||||||||||||
Beginning assets | $ | 37,225 | $ | 37,159 | $ | 37,076 | $ | 36,231 | $ | 34,125 | ||||||
Sales | 1,275 | 1,411 | 3,011 | 4,389 | 9,567 | |||||||||||
Redemptions | (2,058 | ) | (2,394 | ) | (2,883 | ) | (7,499 | ) | (7,697 | ) | ||||||
Net (redemptions) sales | (783 | ) | (983 | ) | 128 | (3,110 | ) | 1,870 | ||||||||
Net exchanges | (58 | ) | (74 | ) | (26 | ) | (72 | ) | (79 | ) | ||||||
Acquisition-related | 0 | 0 | 0 | 287 | 0 | |||||||||||
Market gains and losses1 | 1,357 | 1,123 | 599 | 4,405 | 1,861 | |||||||||||
Ending assets | $ | 37,741 | $ | 37,225 | $ | 37,777 | $ | 37,741 | $ | 37,777 | ||||||
Equity separate accounts2 | ||||||||||||||||
Beginning assets | $ | 28,562 | $ | 27,611 | $ | 24,785 | $ | 26,150 | $ | 19,431 | ||||||
Sales3 | 1,426 | 1,852 | 2,968 | 5,190 | 8,474 | |||||||||||
Redemptions3 | (1,343 | ) | (1,835 | ) | (1,262 | ) | (5,172 | ) | (3,644 | ) | ||||||
Net sales3 | 83 | 17 | 1,706 | 18 | 4,830 | |||||||||||
Net exchanges | 0 | 0 | 1 | 0 | 1 | |||||||||||
Market gains and losses1 | 669 | 934 | (155 | ) | 3,146 | 2,075 | ||||||||||
Ending assets | $ | 29,314 | $ | 28,562 | $ | 26,337 | $ | 29,314 | $ | 26,337 | ||||||
Total equity2 | ||||||||||||||||
Beginning assets | $ | 65,787 | $ | 64,770 | $ | 61,861 | $ | 62,381 | $ | 53,556 | ||||||
Sales3 | 2,701 | 3,263 | 5,979 | 9,579 | 18,041 | |||||||||||
Redemptions3 | (3,401 | ) | (4,229 | ) | (4,145 | ) | (12,671 | ) | (11,341 | ) | ||||||
Net (redemptions) sales3 | (700 | ) | (966 | ) | 1,834 | (3,092 | ) | 6,700 | ||||||||
Net exchanges | (58 | ) | (74 | ) | (25 | ) | (72 | ) | (78 | ) | ||||||
Acquisition-related | 0 | 0 | 0 | 287 | 0 | |||||||||||
Market gains and losses1 | 2,026 | 2,057 | 444 | 7,551 | 3,936 | |||||||||||
Ending assets | $ | 67,055 | $ | 65,787 | $ | 64,114 | $ | 67,055 | $ | 64,114 | ||||||
Fixed-income funds | ||||||||||||||||
Beginning assets | $ | 40,880 | $ | 40,239 | $ | 38,611 | $ | 39,434 | $ | 37,989 | ||||||
Sales | 3,424 | 3,729 | 3,641 | 11,139 | 10,442 | |||||||||||
Redemptions | (3,508 | ) | (3,591 | ) | (2,971 | ) | (10,930 | ) | (10,415 | ) | ||||||
Net (redemptions) sales | (84 | ) | 138 | 670 | 209 | 27 | ||||||||||
Net exchanges | 53 | 10 | 19 | 39 | (12 | ) | ||||||||||
Acquisition-related | 0 | 0 | 0 | 148 | 0 | |||||||||||
Market gains and losses1 | 365 | 493 | 496 | 1,384 | 1,792 | |||||||||||
Ending assets | $ | 41,214 | $ | 40,880 | $ | 39,796 | $ | 41,214 | $ | 39,796 | ||||||
Fixed-income separate accounts2 | ||||||||||||||||
Beginning assets | $ | 11,627 | $ | 11,541 | $ | 11,714 | $ | 11,880 | $ | 13,130 | ||||||
Sales3 | 163 | 277 | 360 | 654 | 704 | |||||||||||
Redemptions3 | (389 | ) | (401 | ) | (284 | ) | (1,485 | ) | (2,717 | ) | ||||||
Net (redemptions) sales3 | (226 | ) | (124 | ) | 76 | (831 | ) | (2,013 | ) | |||||||
Net exchanges | 0 | 0 | 0 | (56 | ) | 0 | ||||||||||
Market gains and losses1 | 157 | 210 | 258 | 565 | 931 | |||||||||||
Ending assets | $ | 11,558 | $ | 11,627 | $ | 12,048 | $ | 11,558 | $ | 12,048 | ||||||
Total fixed income2 | ||||||||||||||||
Beginning assets | $ | 52,507 | $ | 51,780 | $ | 50,325 | $ | 51,314 | $ | 51,119 | ||||||
Sales3 | 3,587 | 4,006 | 4,001 | 11,793 | 11,146 | |||||||||||
Redemptions3 | (3,897 | ) | (3,992 | ) | (3,255 | ) | (12,415 | ) | (13,132 | ) | ||||||
Net (redemptions) sales3 | (310 | ) | 14 | 746 | (622 | ) | (1,986 | ) | ||||||||
Net exchanges | 53 | 10 | 19 | (17 | ) | (12 | ) | |||||||||
Acquisition-related | 0 | 0 | 0 | 148 | 0 | |||||||||||
Market gains and losses1 | 522 | 703 | 754 | 1,949 | 2,723 | |||||||||||
Ending assets | $ | 52,772 | $ | 52,507 | $ | 51,844 | $ | 52,772 | $ | 51,844 | ||||||
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 total investment return.
Federated Reports Q3 2017 Earnings | Page 8 of 10 | |
Unaudited Total Changes in Equity and Fixed-Income Assets
(in millions)
Quarter Ended | Nine Months Ended | |||||||||||||||
Sept. 30, 2017 | June 30, 2017 | Sept. 30, 2016 | Sept. 30, 2017 | Sept. 30, 2016 | ||||||||||||
Funds | ||||||||||||||||
Beginning assets | $ | 78,105 | $ | 77,398 | $ | 75,687 | $ | 75,665 | $ | 72,114 | ||||||
Sales | 4,699 | 5,140 | 6,652 | 15,528 | 20,009 | |||||||||||
Redemptions | (5,566 | ) | (5,985 | ) | (5,854 | ) | (18,429 | ) | (18,112 | ) | ||||||
Net (redemptions) sales | (867 | ) | (845 | ) | 798 | (2,901 | ) | 1,897 | ||||||||
Net exchanges | (5 | ) | (64 | ) | (7 | ) | (33 | ) | (91 | ) | ||||||
Acquisition-related | 0 | 0 | 0 | 435 | 0 | |||||||||||
Market gains and losses1 | 1,722 | 1,616 | 1,095 | 5,789 | 3,653 | |||||||||||
Ending assets | $ | 78,955 | $ | 78,105 | $ | 77,573 | $ | 78,955 | $ | 77,573 | ||||||
Separate accounts2 | ||||||||||||||||
Beginning assets | $ | 40,189 | $ | 39,152 | $ | 36,499 | $ | 38,030 | $ | 32,561 | ||||||
Sales3 | 1,589 | 2,129 | 3,328 | 5,844 | 9,178 | |||||||||||
Redemptions3 | (1,732 | ) | (2,236 | ) | (1,546 | ) | (6,657 | ) | (6,361 | ) | ||||||
Net (redemptions) sales3 | (143 | ) | (107 | ) | 1,782 | (813 | ) | 2,817 | ||||||||
Net exchanges | 0 | 0 | 1 | (56 | ) | 1 | ||||||||||
Market gains and losses1 | 826 | 1,144 | 103 | 3,711 | 3,006 | |||||||||||
Ending assets | $ | 40,872 | $ | 40,189 | $ | 38,385 | $ | 40,872 | $ | 38,385 | ||||||
Total assets2 | ||||||||||||||||
Beginning assets | $ | 118,294 | $ | 116,550 | $ | 112,186 | $ | 113,695 | $ | 104,675 | ||||||
Sales3 | 6,288 | 7,269 | 9,980 | 21,372 | 29,187 | |||||||||||
Redemptions3 | (7,298 | ) | (8,221 | ) | (7,400 | ) | (25,086 | ) | (24,473 | ) | ||||||
Net (redemptions) sales3 | (1,010 | ) | (952 | ) | 2,580 | (3,714 | ) | 4,714 | ||||||||
Net exchanges | (5 | ) | (64 | ) | (6 | ) | (89 | ) | (90 | ) | ||||||
Acquisition-related | 0 | 0 | 0 | 435 | 0 | |||||||||||
Market gains and losses1 | 2,548 | 2,760 | 1,198 | 9,500 | 6,659 | |||||||||||
Ending assets | $ | 119,827 | $ | 118,294 | $ | 115,958 | $ | 119,827 | $ | 115,958 | ||||||
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 total investment return.
Federated Reports Q3 2017 Earnings | Page 9 of 10 | |
Unaudited Managed Assets (in millions) | Sept. 30, 2017 | June 30, 2017 | March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 67,055 | $ | 65,787 | $ | 64,770 | $ | 62,381 | $ | 64,114 | |||||
Fixed-income | 52,772 | 52,507 | 51,780 | 51,314 | 51,844 | ||||||||||
Money market | 243,840 | 242,096 | 245,198 | 252,213 | 248,366 | ||||||||||
Total Managed Assets | $ | 363,667 | $ | 360,390 | $ | 361,748 | $ | 365,908 | $ | 364,324 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 37,741 | $ | 37,225 | $ | 37,159 | $ | 36,231 | $ | 37,777 | |||||
Fixed-income | 41,214 | 40,880 | 40,239 | 39,434 | 39,796 | ||||||||||
Money market | 177,865 | 173,338 | 175,232 | 206,411 | 209,382 | ||||||||||
Total Fund Assets | $ | 256,820 | $ | 251,443 | $ | 252,630 | $ | 282,076 | $ | 286,955 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 29,314 | $ | 28,562 | $ | 27,611 | $ | 26,150 | $ | 26,337 | |||||
Fixed-income | 11,558 | 11,627 | 11,541 | 11,880 | 12,048 | ||||||||||
Money market | 65,975 | 68,758 | 69,966 | 45,802 | 38,984 | ||||||||||
Total Separate Account Assets | $ | 106,847 | $ | 108,947 | $ | 109,118 | $ | 83,832 | $ | 77,369 | |||||
Total Managed Assets | $ | 363,667 | $ | 360,390 | $ | 361,748 | $ | 365,908 | $ | 364,324 | |||||
Unaudited Average Managed Assets | Quarter Ended | ||||||||||||||
(in millions) | Sept. 30, 2017 | June 30, 2017 | March 31, 2017 | Dec. 31, 2016 | Sept. 30, 2016 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 66,127 | $ | 65,399 | $ | 63,780 | $ | 62,575 | $ | 63,682 | |||||
Fixed-income | 52,631 | 52,291 | 51,802 | 51,526 | 51,446 | ||||||||||
Money market | 241,749 | 242,298 | 247,591 | 244,197 | 250,292 | ||||||||||
Total Avg. Managed Assets | $ | 360,507 | $ | 359,988 | $ | 363,173 | $ | 358,298 | $ | 365,420 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 37,301 | $ | 37,325 | $ | 36,957 | $ | 36,667 | $ | 37,902 | |||||
Fixed-income | 40,967 | 40,670 | 40,086 | 39,571 | 39,527 | ||||||||||
Money market | 174,358 | 172,626 | 182,418 | 203,474 | 213,078 | ||||||||||
Total Avg. Fund Assets | $ | 252,626 | $ | 250,621 | $ | 259,461 | $ | 279,712 | $ | 290,507 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 28,826 | $ | 28,074 | $ | 26,823 | $ | 25,908 | $ | 25,780 | |||||
Fixed-income | 11,664 | 11,621 | 11,716 | 11,955 | 11,919 | ||||||||||
Money market | 67,391 | 69,672 | 65,173 | 40,723 | 37,214 | ||||||||||
Total Avg. Separate Account Assets | $ | 107,881 | $ | 109,367 | $ | 103,712 | $ | 78,586 | $ | 74,913 | |||||
Total Avg. Managed Assets | $ | 360,507 | $ | 359,988 | $ | 363,173 | $ | 358,298 | $ | 365,420 | |||||
Federated Reports Q3 2017 Earnings | Page 10 of 10 | |
Unaudited Average Managed Assets | Nine Months Ended | |||||||
(in millions) | Sept. 30, 2017 | Sept. 30, 2016 | ||||||
By Asset Class | ||||||||
Equity | $ | 65,102 | $ | 58,383 | ||||
Fixed-income | 52,242 | 51,039 | ||||||
Money market | 243,879 | 255,063 | ||||||
Total Avg. Managed Assets | $ | 361,223 | $ | 364,485 | ||||
By Product Type | ||||||||
Funds: | ||||||||
Equity | $ | 37,194 | $ | 35,572 | ||||
Fixed-income | 40,575 | 38,505 | ||||||
Money market | 176,467 | 217,384 | ||||||
Total Avg. Fund Assets | $ | 254,236 | $ | 291,461 | ||||
Separate Accounts: | ||||||||
Equity | $ | 27,908 | $ | 22,811 | ||||
Fixed-income | 11,667 | 12,534 | ||||||
Money market | 67,412 | 37,679 | ||||||
Total Avg. Separate Account Assets | $ | 106,987 | $ | 73,024 | ||||
Total Avg. Managed Assets | $ | 361,223 | $ | 364,485 | ||||