EX-99.1 2 a991-2017q2earningspressre.htm PRESS RELEASE Exhibit
Exhibit 99.1
image011a13.jpg

Federated Investors, Inc. Reports Second Quarter 2017 Earnings
•
Q2 2017 EPS of $0.53 up 4 percent from $0.51 in Q2 2016
•
Equity assets reach record $65.8 billion
•
Board declares $0.25 per share dividend
(PITTSBURGH, Pa., July 27, 2017) — Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.53 for Q2 2017, compared to $0.51 for the same quarter last year on net income of $53.5 million for Q2 2017, compared to $52.7 million for Q2 2016.
Federated's total managed assets were $360.4 billion at June 30, 2017, down $6.8 billion or 2 percent from $367.2 billion at June 30, 2016 and down $1.3 billion from $361.7 billion at March 31, 2017. Lower money market assets were partially offset by higher equity and fixed-income assets at the end of Q2 2017 compared to both the end of Q2 2016 and Q1 2017. Average managed assets for Q2 2017 were $360.0 billion, down $4.2 billion or 1 percent from $364.2 billion reported for Q2 2016 and down $3.2 billion or 1 percent from $363.2 billion reported for Q1 2017.
"Investors showed continued interest in the $7.3 billion Federated Total Return Bond Fund, a core holding with broad fixed-income market exposure, which experienced positive net sales in the second quarter," said J. Christopher Donahue, president and chief executive officer. "Federated also saw positive flows in fixed-income funds overall, including high-yield strategies and a range of short-duration products."
Federated's board of directors declared a dividend of $0.25 per share. The dividend is payable on Aug. 15, 2017 to shareholders of record as of Aug. 8, 2017. During Q2 2017, Federated purchased 580,274 shares of Federated class B common stock for $14.7 million.
Federated's equity assets were a record $65.8 billion at June 30, 2017, up $3.9 billion or 6 percent from $61.9 billion at June 30, 2016 and up $1.0 billion or 2 percent from $64.8 billion at March 31, 2017. Assets in Federated's domestic and international Strategic Value Dividend strategies were a record $40.0 billion at June 30, 2017, up $4.1 billion or 11 percent from $35.9 billion at June 30, 2016 and up $1.1 billion or 3 percent from $38.9 billion at March 31, 2017. Top-selling equity funds during Q2 2017 on a net basis were led by Federated MDT Small Cap Growth Fund and Federated MDT Small Cap Core Fund.
Federated's fixed-income assets were $52.5 billion at June 30, 2017, up $2.2 billion or 4 percent from $50.3 billion at June 30, 2016 and up $0.7 billion or 1 percent from $51.8 billion at March 31, 2017. Top-selling fixed-income funds during Q2 2017 on a net basis included Federated Total Return Bond Fund, Federated Institutional High Yield Bond Fund, Federated Floating Rate Strategic Income Fund and various short-duration strategies.
Money market assets were $242.1 billion at June 30, 2017, down $12.9 billion or 5 percent from $255.0 billion at June 30, 2016 and down $3.1 billion or 1 percent from $245.2 billion at March 31, 2017. Money market fund assets were $173.3 billion at June 30, 2017, down $44.8 billion or 21 percent from $218.1 billion at June 30, 2016 and down $1.9 billion or 1 percent from $175.2 billion at March 31, 2017. Since June 30, 2016 approximately $25 billion in money market assets has transitioned from Federated funds to Federated separate accounts. Federated's money market separate account assets were $68.8 billion at

MEDIA:
MEDIA:
ANALYSTS:
Ed Costello 412-288-7538
Meghan McAndrew 412-288-8103
Ray Hanley 412-288-1920
 
Federated Reports Q2 2017 Earnings
Page 2 of 11

June 30, 2017, up $31.9 billion or 86 percent from $36.9 billion at June 30, 2016 and down $1.2 billion or 2 percent from $70.0 billion at March 31, 2017.
Financial Summary
Q2 2017 vs. Q2 2016
Revenue decreased by $13.9 million or 5 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 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 assets. See additional information about voluntary yield-related fee waivers in the table at the end of this financial summary.
During Q2 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 $10.5 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.
Q2 2017 vs. Q1 2017
Revenue decreased slightly primarily due to a decrease in revenue resulting from a change in a customer relationship and a decrease in revenue from lower average money market assets. The decrease in revenue was partially offset by a decrease in voluntary yield-related fee waivers, having one more day in Q2 2017 vs. Q1 2017 and an increase in revenue from higher average equity assets.
Operating expenses decreased by $7.1 million or 4 percent primarily due to a decrease in distribution expenses related to a change in a customer relationship and lower average money market fund assets, 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 the seasonal decrease in payroll taxes.
YTD 2017 vs. YTD 2016
Revenue decreased by $12.6 million or 2 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 half 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 $12.3 million or 3 percent primarily due to a decrease in compensation and related expenses resulting from lower incentive compensation and a decrease in distribution expense related to lower average money market fund assets and a change in a customer relationship. These decreases were partially offset by an increase in distribution expenses related to a decrease in voluntary yield-related fee waivers and an increase related to higher average equity and fixed-income fund assets.


 
Federated Reports Q2 2017 Earnings
Page 3 of 11

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 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 in the future as they are contingent on a number of variables as described in Federated's annual and quarterly reports as filed with the SEC.
Unaudited Money Market Fund Yield Waiver Impact to the Consolidated Statements of Income
(in millions)
 
Quarter Ended
 
Change
Q2 2016 to Q2 2017
 
Quarter Ended
 
Change
Q1 2017 to Q2 2017
Six Months Ended
 
Change
YTD 2016 to YTD 2017
 
June 30, 2017
 
June 30, 2016
 
 
March 31, 2017
 
June 30, 2017
 
June 30, 2016
 
Investment advisory fees
$
(0.1
)
 
$
(6.2
)
 
$
6.1

 
$
(0.5
)
 
$
0.4

$
(0.6
)
 
$
(21.2
)
 
$
20.6

Other service fees
0.0

 
(15.1
)
 
15.1

 
(3.8
)
 
3.8

(3.8
)
 
(37.6
)
 
33.8

Total revenue
(0.1
)
 
(21.3
)
 
21.2

 
(4.3
)
 
4.2

(4.4
)
 
(58.8
)
 
54.4

Less: Reduction in distribution expense
0.1

 
16.5

 
(16.4
)
 
3.5

 
(3.4
)
3.6

 
44.4

 
(40.8
)
Operating income
0.0

 
(4.8
)
 
4.8

 
(0.8
)
 
0.8

(0.8
)
 
(14.4
)
 
13.6

Less: Increase in noncontrolling interest
0.0

 
(0.2
)
 
0.2

 
0.0

 
0.0

0.0

 
0.0

 
0.0

Pre-tax impact
$
0.0

 
$
(5.0
)
 
$
5.0

 
$
(0.8
)
 
$
0.8

$
(0.8
)
 
$
(14.4
)
 
$
13.6

Federated will host an earnings conference call at 9 a.m. Eastern on July 28, 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 July 28, 2017 until Aug. 4, 2017 by calling 877-481-4010 (domestic) or 919-882-2331 (international) and entering access code 15978. 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 $360.4 billion in assets as of June 30, 2017. With 122 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 9 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, June 30, 2017. 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, investor interest and preferences, performance and demand, asset flows and mix, fee arrangements with customers, expenses, 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,


 
Federated Reports Q2 2017 Earnings
Page 4 of 11

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, 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 Q2 2017 Earnings
Page 5 of 11

Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
 
 
 
 
 
 
 
Quarter Ended
% Change Q2 2016 to Q2 2017
 
Quarter Ended
% Change Q1 2017 to Q2 2017
 
June 30, 2017
June 30, 2016
 
March 31, 2017
Revenue
 
 
 
 
 
 
Investment advisory fees, net
$
179,322

$
192,663

(7
)%
 
$
181,318

(1
)%
Administrative service fees, net—affiliates
45,601

53,131

(14
)
 
46,701

(2
)
Other service fees, net
47,442

39,943

19

 
45,052

5

Other, net
431

1,001

(57
)
 
430

0

Total Revenue
272,796

286,738

(5
)
 
273,501

0

 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
Distribution
87,174

94,741

(8
)
 
90,359

(4
)
Compensation and related
71,370

75,225

(5
)
 
73,402

(3
)
Systems and communications
8,041

7,767

4

 
8,225

(2
)
Office and occupancy
7,161

6,675

7

 
7,352

(3
)
Professional service fees
5,728

3,645

57

 
6,680

(14
)
Advertising and promotional
3,095

3,938

(21
)
 
2,955

5

Travel and related
2,958

3,656

(19
)
 
2,934

1

Other
3,058

3,421

(11
)
 
3,821

(20
)
Total Operating Expenses
188,585

199,068

(5
)
 
195,728

(4
)
Operating Income
84,211

87,670

(4
)
 
77,773

8

 
 
 
 
 
 
 
Nonoperating Income (Expenses)
 
 
 
 
 
 
Investment income, net
3,937

1,105

256

 
4,214

(7
)
Debt expense
(1,182
)
(1,020
)
16

 
(1,102
)
7

Other, net
(33
)
(2
)
1,550

 
0

NM

Total Nonoperating Income, net
2,722

83

3,180

 
3,112

(13)

Income before income taxes
86,933

87,753

(1
)
 
80,885

7

Income tax provision
32,274

31,335

3

 
29,858

8

Net income including the noncontrolling interests in subsidiaries
54,659

56,418

(3
)
 
51,027

7

Less: Net income attributable to the noncontrolling interests in subsidiaries
1,208

3,709

(67
)
 
1,386

(13
)
Net Income
$
53,451

$
52,709

1
 %
 
$
49,641

8
 %
 
 
 
 
 
 
 
Amounts Attributable to Federated Investors, Inc.
 
 
 
 
 
 
Earnings Per Share1
 
 
 
 
 
 
Basic and diluted
$
0.53

$
0.51

4
 %
 
$
0.49

8
 %
Weighted-average shares outstanding
 
 
 
 
 
 
Basic
97,581

99,592

 
 
97,863

 
Diluted
97,582

99,593

 
 
97,864

 
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, $2.1 million and $2.0 million available to unvested restricted shareholders for the quarterly periods ended June 30, 2017, June 30, 2016 and March 31, 2017, respectively, was excluded from the computation of earnings per share.


 
Federated Reports Q2 2017 Earnings
Page 6 of 11

Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
 
 
 
 
Six Months Ended
 
 
June 30, 2017
June 30, 2016
% Change
Revenue
 
 
 
Investment advisory fees, net
$
360,639

$
374,510

(4
)%
Administrative service fees, net - affiliates
92,302

106,604

(13
)
Other service fees, net
92,494

75,841

22

Other, net
862

1,892

(54
)
Total Revenue
546,297

558,847

(2
)
 
 
 
 
Operating Expenses
 
 
 
Distribution
177,533

183,122

(3
)
Compensation and related
144,772

151,995

(5
)
Systems and communications
16,266

15,632

4

Office and occupancy
14,513

13,563

7

Professional service fees
12,408

12,526

(1
)
Advertising and promotional
6,051

7,380

(18
)
Travel and related
5,893

6,562

(10
)
Other
6,877

5,842

18

Total Operating Expenses
384,313

396,622

(3
)
Operating Income
161,984

162,225

0

 
 
 
 
Nonoperating Income (Expenses)
 
 
 
Investment income, net
8,151

3,769

116

Debt expense
(2,283
)
(2,079
)
10

Other, net
(34
)
(7
)
386

Total Nonoperating Income, net
5,834

1,683

247

Income before income taxes
167,818

163,908

2

Income tax provision
62,132

58,531

6

Net income including the noncontrolling interests in subsidiaries
105,686

105,377

0

Less: Net income attributable to the noncontrolling interests in subsidiaries
2,594

7,225

(64
)
Net Income
$
103,092

$
98,152

5
 %
 
 
 
 
Amounts Attributable to Federated Investors, Inc.
 
 
 
Earnings Per Share1
 
 
 
Basic and diluted
$
1.01

$
0.94

7
 %
Weighted-average shares outstanding
 
 
 
Basic
97,722

99,697

 
Diluted
97,723

99,698

 
Dividends declared per share
$
0.50

$
0.50

 
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 $4.1 million and $3.9 million available to unvested restricted shareholders for the six months ended June 30, 2017 and June 30, 2016, respectively, was excluded from the computation of earnings per share.
















 
Federated Reports Q2 2017 Earnings
Page 7 of 11

Unaudited Condensed Consolidated Balance Sheets
 
 
(in thousands)
June 30, 2017
Dec. 31, 2016
Assets
 
 
  Cash and other investments
$
282,775

$
301,149

  Other current assets
61,608

58,611

  Intangible assets, net, including goodwill
737,202

733,137

  Other long-term assets
59,206

62,210

  Total Assets
$
1,140,791

$
1,155,107

 
 
 
Liabilities, Redeemable Noncontrolling Interests and Equity
 
 
  Current liabilities
$
94,679

$
162,538

  Long-term debt
178,500

165,750

  Other long-term liabilities
205,321

199,673

  Redeemable noncontrolling interests
30,662

31,362

  Equity excluding treasury stock
901,042

851,166

  Treasury stock
(269,413
)
(255,382
)
  Total Liabilities, Redeemable Noncontrolling Interests and Equity
$
1,140,791

$
1,155,107


































 
Federated Reports Q2 2017 Earnings
Page 8 of 11

Unaudited Changes in Equity and Fixed-Income Fund and Separate Account Assets
(in millions)
 
Quarter Ended
 
Six Months Ended
 
June 30, 2017
March 31, 2017
June 30, 2016
 
June 30, 2017
June 30, 2016
Equity funds
 
 
 
 
 
 
Beginning assets
$
37,159

$
36,231

$
34,935

 
$
36,231

$
34,125

Sales
1,411

1,703

3,117

 
3,114

6,556

Redemptions
(2,394
)
(3,047
)
(2,294
)
 
(5,441
)
(4,814
)
Net (redemptions) sales
(983
)
(1,344
)
823

 
(2,327
)
1,742

Net exchanges
(74
)
60

(16
)
 
(14
)
(53
)
Acquisition-related
0

287

0

 
287

0

Market gains and losses1
1,123

1,925

1,334

 
3,048

1,262

Ending assets
$
37,225

$
37,159

$
37,076

 
$
37,225

$
37,076

 
 
 
 
 
 
 
Equity separate accounts2
 
 
 
 
 
 
Beginning assets
$
27,611

$
26,150

$
21,550

 
$
26,150

$
19,431

Sales3
1,852

1,912

3,156

 
3,764

5,506

Redemptions3
(1,835
)
(1,994
)
(1,153
)
 
(3,829
)
(2,382
)
Net sales (redemptions)3
17

(82
)
2,003

 
(65
)
3,124

Market gains and losses1
934

1,543

1,232

 
2,477

2,230

Ending assets
$
28,562

$
27,611

$
24,785

 
$
28,562

$
24,785

 
 
 
 
 
 
 
Total equity2
 
 
 
 
 
 
Beginning assets
$
64,770

$
62,381

$
56,485

 
$
62,381

$
53,556

Sales3
3,263

3,615

6,273

 
6,878

12,062

Redemptions3
(4,229
)
(5,041
)
(3,447
)
 
(9,270
)
(7,196
)
Net (redemptions) sales3
(966
)
(1,426
)
2,826

 
(2,392
)
4,866

Net exchanges
(74
)
60

(16
)
 
(14
)
(53
)
Acquisition-related
0

287

0

 
287

0

Market gains and losses1
2,057

3,468

2,566

 
5,525

3,492

Ending assets
$
65,787

$
64,770

$
61,861

 
$
65,787

$
61,861

 
 
 
 
 
 
 
Fixed-income funds
 
 
 
 
 
 
Beginning assets
$
40,239

$
39,434

$
37,826

 
$
39,434

$
37,989

Sales
3,729

3,986

3,467

 
7,715

6,801

Redemptions
(3,591
)
(3,831
)
(3,364
)
 
(7,422
)
(7,444
)
Net sales (redemptions)
138

155

103

 
293

(643
)
Net exchanges
10

(24
)
18

 
(14
)
(31
)
Acquisition-related
0

148

0

 
148

0

Market gains and losses1
493

526

664

 
1,019

1,296

Ending assets
$
40,880

$
40,239

$
38,611

 
$
40,880

$
38,611

 
 
 
 
 
 
 
Fixed-income separate accounts2
 
 
 
 
 
 
Beginning assets
$
11,541

$
11,880

$
13,352

 
$
11,880

$
13,130

Sales3
277

214

147

 
491

344

Redemptions3
(401
)
(695
)
(2,105
)
 
(1,096
)
(2,433
)
Net redemptions3
(124
)
(481
)
(1,958
)
 
(605
)
(2,089
)
Net exchanges
0

(56
)
0

 
(56
)
0

Market gains and losses1
210

198

320

 
408

673

Ending assets
$
11,627

$
11,541

$
11,714

 
$
11,627

$
11,714

 
 
 
 
 
 
 
Total fixed income2
 
 
 
 
 
 
Beginning assets
$
51,780

$
51,314

$
51,178

 
$
51,314

$
51,119

Sales3
4,006

4,200

3,614

 
8,206

7,145

Redemptions3
(3,992
)
(4,526
)
(5,469
)
 
(8,518
)
(9,877
)
Net sales (redemptions)3
14

(326
)
(1,855
)
 
(312
)
(2,732
)
Net exchanges
10

(80
)
18

 
(70
)
(31
)
Acquisition-related
0

148

0

 
148

0

Market gains and losses1
703

724

984

 
1,427

1,969

Ending assets
$
52,507

$
51,780

$
50,325

 
$
52,507

$
50,325

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 Q2 2017 Earnings
Page 9 of 11

Unaudited Total Changes in Equity and Fixed-Income Assets
(in millions)
 
Quarter Ended
 
Six Months Ended
 
June 30, 2017
March 31, 2017
June 30, 2016
 
June 30, 2017
June 30, 2016
 
 
 
 
 
 
 
Funds
 
 
 
 
 
 
Beginning assets
$
77,398

$
75,665

$
72,761

 
$
75,665

$
72,114

Sales
5,140

5,689

6,584

 
10,829

13,357

Redemptions
(5,985
)
(6,878
)
(5,658
)
 
(12,863
)
(12,258
)
Net (redemptions) sales
(845
)
(1,189
)
926

 
(2,034
)
1,099

Net exchanges
(64
)
36

2

 
(28
)
(84
)
Acquisition-related
0

435

0

 
435

0

Market gains and losses1
1,616

2,451

1,998

 
4,067

2,558

Ending assets
$
78,105

$
77,398

$
75,687

 
$
78,105

$
75,687

 
 
 
 
 
 
 
Separate accounts2
 
 
 
 
 
 
Beginning assets
$
39,152

$
38,030

$
34,902

 
$
38,030

$
32,561

Sales3
2,129

2,126

3,303

 
4,255

5,850

Redemptions3
(2,236
)
(2,689
)
(3,258
)
 
(4,925
)
(4,815
)
Net (redemptions) sales3
(107
)
(563
)
45

 
(670
)
1,035

Net exchanges
0

(56
)
0

 
(56
)
0

Market gains and losses1
1,144

1,741

1,552

 
2,885

2,903

Ending assets
$
40,189

$
39,152

$
36,499

 
$
40,189

$
36,499

 
 
 
 
 
 
 
Total assets 2
 
 
 
 
 
 
Beginning assets
$
116,550

$
113,695

$
107,663

 
$
113,695

$
104,675

Sales3
7,269

7,815

9,887

 
15,084

19,207

Redemptions3
(8,221
)
(9,567
)
(8,916
)
 
(17,788
)
(17,073
)
Net (redemptions) sales3
(952
)
(1,752
)
971

 
(2,704
)
2,134

Net exchanges
(64
)
(20
)
2

 
(84
)
(84
)
Acquisition-related
0

435

0

 
435

0

Market gains and losses1
2,760

4,192

3,550

 
6,952

5,461

Ending assets
$
118,294

$
116,550

$
112,186

 
$
118,294

$
112,186

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 Q2 2017 Earnings
Page 10 of 11

Unaudited Managed Assets
(in millions)
June 30, 2017

March 31, 2017

Dec. 31, 2016

Sept. 30, 2016

June 30, 2016

By Asset Class
 
 
 
 
 
Equity
$
65,787

$
64,770

$
62,381

$
64,114

$
61,861

Fixed-income
52,507

51,780

51,314

51,844

50,325

Money market
242,096

245,198

252,213

248,366

254,992

Total Managed Assets
$
360,390

$
361,748

$
365,908

$
364,324

$
367,178

By Product Type
 
 
 
 
 
Funds:
 
 
 
 
 
Equity
$
37,225

$
37,159

$
36,231

$
37,777

$
37,076

Fixed-income
40,880

40,239

39,434

39,796

38,611

Money market
173,338

175,232

206,411

209,382

218,107

Total Fund Assets
$
251,443

$
252,630

$
282,076

$
286,955

$
293,794

Separate Accounts:
 
 
 
 
 
Equity
$
28,562

$
27,611

$
26,150

$
26,337

$
24,785

Fixed-income
11,627

11,541

11,880

12,048

11,714

Money market
68,758

69,966

45,802

38,984

36,885

Total Separate Account Assets
$
108,947

$
109,118

$
83,832

$
77,369

$
73,384

Total Managed Assets
$
360,390

$
361,748

$
365,908

$
364,324

$
367,178

 
Unaudited Average Managed Assets
Quarter Ended
(in millions)
June 30, 2017

March 31, 2017

Dec. 31, 2016

Sept. 30, 2016

June 30, 2016

By Asset Class
 
 
 
 
 
Equity
$
65,399

$
63,780

$
62,575

$
63,682

$
58,680

Fixed-income
52,291

51,802

51,526

51,446

50,793

Money market
242,298

247,591

244,197

250,292

254,693

Total Avg. Managed Assets
$
359,988

$
363,173

$
358,298

$
365,420

$
364,166

By Product Type
 
 
 
 
 
Funds:
 
 
 
 
 
Equity
$
37,325

$
36,957

$
36,667

$
37,902

$
35,891

Fixed-income
40,670

40,086

39,571

39,527

38,214

Money market
172,626

182,418

203,474

213,078

217,226

Total Avg. Fund Assets
$
250,621

$
259,461

$
279,712

$
290,507

$
291,331

Separate Accounts:
 
 
 
 
 
Equity
$
28,074

$
26,823

$
25,908

$
25,780

$
22,789

Fixed-income
11,621

11,716

11,955

11,919

12,579

Money market
69,672

65,173

40,723

37,214

37,467

Total Avg. Separate Account Assets
$
109,367

$
103,712

$
78,586

$
74,913

$
72,835

Total Avg. Managed Assets
$
359,988

$
363,173

$
358,298

$
365,420

$
364,166



 
Federated Reports Q2 2017 Earnings
Page 11 of 11

Unaudited Average Managed Assets
 
Six Months Ended
(in millions)
 
June 30, 2017
 
June 30, 2016
By Asset Class
 
 
 
 
Equity
 
$
64,590

 
$
55,733

Fixed-income
 
52,047

 
50,836

Money market
 
244,944

 
257,448

Total Avg. Managed Assets
 
$
361,581

 
$
364,017

By Product Type
 
 
 
 
Funds:
 
 
 
 
Equity
 
$
37,141

 
$
34,406

Fixed-income
 
40,378

 
37,995

Money market
 
177,522

 
219,537

Total Avg. Fund Assets
 
$
255,041

 
$
291,938

Separate Accounts:
 
 
 
 
Equity
 
$
27,449

 
$
21,327

Fixed-income
 
11,669

 
12,841

Money market
 
67,422

 
37,911

Total Avg. Separate Account Assets
 
$
106,540

 
$
72,079

Total Avg. Managed Assets
 
$
361,581

 
$
364,017