EX-99.1 2 a991-2012q2earningspressre.htm PRESS RELEASE 99.1 - 2012 Q2 Earnings Press Release

Exhibit 99.1

Federated Investors, Inc. Reports Second Quarter 2012 Earnings
•
Record equity and fixed-income assets increase $1.4 billion during Q2 2012 to $90 billion
•
Equity and fixed-income fund gross sales reach a record $7 billion for Q2 2012
•
Board declares $0.24 per share quarterly dividend
(PITTSBURGH, Pa., July 26, 2012) - Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.39 for the quarter ended June 30, 2012 as compared to $0.41 for the same quarter last year. Net income was $40.4 million for Q2 2012 compared to $42.4 million for Q2 2011.
Federated's total managed assets were $355.9 billion at June 30, 2012, up $6.5 billion or 2 percent from $349.4 billion at June 30, 2011 and down $7.7 billion or 2 percent from $363.6 billion reported at March 31, 2012. Average managed assets for Q2 2012 were $360.6 billion, up $6.4 billion or 2 percent from $354.2 billion reported for Q2 2011 and down $9.5 billion or 3 percent from $370.1 billion reported for Q1 2012. Net sales of equity and fixed-income funds and separate accounts were a positive $2.0 billion for Q2 2012.
“Continued demand for high-quality, income-oriented investment strategies fueled Federated's record gross sales of mutual funds, which topped $7 billion, during the quarter," said J. Christopher Donahue, president and chief executive officer. "Federated continued to meet investor demand for bond products from short-duration strategies to high yield, while a variety of dividend-oriented equity products, including an international-dividend strategy, were among the top sellers during the quarter."
Federated's board of directors declared a quarterly dividend of $0.24 per share. The dividend is payable on Aug. 15, 2012 to shareholders of record as of Aug. 8, 2012. During Q2 2012, Federated purchased 69,443 shares of Federated class B common stock for $1.2 million.
Federated's equity assets were $33.2 billion at June 30, 2012, up $1.8 billion or 6 percent from $31.4 billion at June 30, 2011 and down $0.9 billion or 3 percent from $34.1 billion at March 31, 2012. Top-selling equity funds during Q2 2012 on a net basis were Federated Strategic Value Dividend Fund, Federated International Leaders Fund and Federated International Strategic Value Dividend Fund.
Federated's fixed-income assets were a record $49.0 billion at June 30, 2012, up $6.6 billion or 16 percent from $42.4 billion at June 30, 2011 and up $2.8 billion or 6 percent from $46.2 billion at March 31, 2012. Fixed-income assets in liquidation portfolios were $8.1 billion at June 30, 2012. Fixed-income sales were driven by strong net flows into Federated Government Ultrashort Duration Fund, Federated Short-Term Income Fund, Federated Intermediate Government/Corporate Fund and Federated Institutional High Yield Bond Fund.
Money market assets in both funds and separate accounts were $265.5 billion at June 30, 2012, down slightly from $265.7 billion at June 30, 2011 and down $9.2 billion or 3 percent from $274.7 billion at March 31, 2012. Money market mutual fund assets were $238.6 billion at June 30, 2012, up $2.5 billion or 1 percent from $236.1 billion at June 30, 2011 and down $6.6 billion or 3 percent from $245.2 billion at March 31, 2012.

MEDIA:
MEDIA:
ANALYSTS:
Meghan McAndrew 412-288-8103
J.T. Tuskan 412-288-7895
Ray Hanley 412-288-1920

  
Federated Reports Q2 2012 Earnings
Page 2 of 10

Financial Summary
Q2 2012 vs. Q2 2011
Revenue increased by $6.4 million or 3 percent due primarily to a decrease of $9.1 million in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields and due to an increase in average fixed-income assets. The reduction in fee waivers was primarily the result of improved yields available on securities held by money market funds. The revenue increase was partially offset by a decrease due to a change in the mix of average equity assets. See additional information about voluntary fee waivers in the table at the end of this financial summary.
Federated derived 52 percent of its revenue from equity and fixed-income assets (31 percent from equity assets and 21 percent from fixed-income assets), 47 percent from money market assets and 1 percent from other products and services.
Operating expenses increased $9.4 million or 6 percent primarily as a result of a $4.5 million increase in distribution expense related primarily to reduced fee waivers and increased compensation and related expense.
Q2 2012 vs. Q1 2012
Revenue increased by $1.9 million or 1 percent primarily related to a decrease in the aforementioned voluntary fee waivers due mainly to improved yields available on securities held by money market funds. This increase was partially offset by lower average money market assets and a change in the mix of average equity assets.
Operating expenses increased by $3.2 million or 2 percent. This increase was primarily related to an increase in compensation and related expense and intangible asset related expense.
YTD 2012 vs. YTD 2011
Revenue for the first half of 2012 decreased by $2.2 million, or less than 1 percent from the first half of 2011. The decrease in revenue was primarily related to an increase in the aforementioned voluntary fee waivers primarily as a result of higher average money market assets along with lower average yields available on securities held by money market funds in the first half of 2012, compared to the first half of 2011, and a change in the mix of average equity assets. This revenue decrease was partially offset by an increase related to higher average fixed-income and money market assets.
For the first half of 2012, Federated derived 52 percent of its revenue from equity and fixed-income assets (31 percent from equity assets and 21 percent from fixed-income assets), 47 percent from money market assets and 1 percent from other products and services.
Operating expenses for the first half of 2012 decreased by $13.0 million or 4 percent compared to the same period last year. The decrease primarily reflects a decrease in professional service fees due to nonrecurring legal expenses incurred in Q1 2011. Additionally, intangible asset related expense decreased due to certain intangible assets becoming fully amortized in 2011 as well as mark-to-market adjustments of an acquisition-related contingent payment liability in both periods.
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



  
Federated Reports Q2 2012 Earnings
Page 3 of 10

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 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.


Money Market Fund Yield Waiver Impact
(in millions)
 
Quarter Ended
Change
Q2 2011 to Q2 2012
 
Quarter Ended
Change
Q1 2012 to Q2 2012
 
Six Months Ended
Change
YTD 2011 to YTD 2012
(Decrease)/Increase
June 30, 2012
June 30, 2011
 
March 31, 2012
 
June 30, 2012
June 30, 2011
Investment advisory fees
$
(43.0
)
$
(49.6
)
$
6.6

 
$
(52.9
)
$
9.9

 
$
(95.9
)
$
(85.6
)
$
(10.3
)
Other service fees
(27.3
)
(29.8
)
2.5

 
(27.5
)
0.2

 
(54.8
)
(57.2
)
2.4

Total Revenue
$
(70.3
)
$
(79.4
)
$
9.1

 
$
(80.4
)
$
10.1

 
$
(150.7
)
$
(142.8
)
$
(7.9
)
Distribution expense
(53.1
)
(57.8
)
4.7

 
(57.5
)
4.4

 
(110.6
)
(107.3
)
(3.3
)
Operating income
$
(17.2
)
$
(21.6
)
$
4.4

 
$
(22.9
)
$
5.7

 
$
(40.1
)
$
(35.5
)
$
(4.6
)
Noncontrolling interest
0.0

(2.2
)
2.2

 
(0.6
)
0.6

 
(0.6
)
(3.0
)
2.4

Pre-tax impact
$
(17.2
)
$
(19.4
)
$
2.2

 
$
(22.3
)
$
5.1

 
$
(39.5
)
$
(32.5
)
$
(7.0
)
Federated will host an earnings conference call at 9 a.m. Eastern on July 27, 2012. 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. 3, 2012 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 397419.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $355.9 billion in assets as of June 30, 2012. With 138 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 4,700 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 7 percent of fixed-income fund managers1. For more information, visit FederatedInvestors.com.
###
1 Strategic Insight, May 31, 2012. 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 incurred by the company, and product demand and asset flows constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the ability of the company to predict the level of fee waivers in future quarters, which could vary significantly depending on a variety of factors identified above, and include the ability of the company to sustain product demand and asset flows, which could vary significantly depending on market conditions, investment performance and investor behavior. Other risks and uncertainties also include the risk factors discussed in the 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 2012 Earnings
Page 4 of 10

Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
 
 
 
 
 
 
Quarter Ended
% Change Q2 2011 to Q2 2012
Quarter Ended
 % Change Q1 2012 to Q2 2012
 
June 30, 2012
June 30, 2011
March 31, 2012
Revenue
 
 
 
 
 
Investment advisory fees, net
$
154,367

$
149,127

4
 %
$
149,348

3
 %
Administrative service fees, net
54,986

54,550

1

57,292

(4
)
Other service fees, net
22,007

21,465

3

22,655

(3
)
Other, net
772

635

22

986

(22
)
Total Revenue
232,132

225,777

3

230,281

1

 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
Compensation and related
65,215

62,493

4

64,065

2

Distribution
62,328

57,798

8

61,693

1

Professional service fees
9,932

8,548

16

10,308

(4
)
Systems and communications
6,773

5,727

18

6,310

7

Office and occupancy
6,119

6,032

1

6,253

(2
)
Travel and related
3,336

3,253

3

2,751

21

Advertising and promotional
3,316

2,841

17

2,928

13

Intangible asset related
822

1,629

(50
)
21

3,814

Other
5,271

5,373

(2
)
5,605

(6
)
Total Operating Expenses
163,112

153,694

6

159,934

2

Operating Income
69,020

72,083

(4
)
70,347

(2
)
 
 
 
 
 
 
Nonoperating Income (Expenses)
 
 
 
 
 
Investment income, net
2,272

1,178

93

3,346

(32
)
Debt expense
(3,690
)
(4,577
)
(19
)
(3,711
)
(1
)
Other, net
(128
)
(85
)
51

(37
)
246

Total Nonoperating Expenses, net
(1,546
)
(3,484
)
(56
)
(402
)
285

Income before income taxes
67,474

68,599

(2
)
69,945

(4
)
Income tax provision
24,401

25,714

(5
)
25,538

(4
)
Net income including noncontrolling interest in subsidiaries
43,073

42,885

0

44,407

(3
)
Less: Net income attributable to the noncontrolling interest in subsidiaries
2,663

472

464

2,082

28

Net Income
$
40,410

$
42,413

(5
)%
$
42,325

(5
)%
 
 
 
 
 
 
Amounts Attributable to Federated
 
 
 
 
 
Earnings Per Share1
 
 
 
 
 
Basic and Diluted
$
0.39

$
0.41

(5
)%
$
0.41

(5
)%
Weighted-average shares outstanding
 
 
 


 
Basic
100,347

100,907

 
100,112

 
Diluted
100,347

100,917

 
100,112

 
Dividends declared per share
$
0.24

$
0.24

 
$
0.24

 
1) Unvested share-based payment awards that receive non-forfeitable dividend rights are considered participating securities and are required to be included in the computation of earnings per share under the “two-class method.” Total income available to participating restricted shareholders was $1.5 million, $1.4 million and $1.5 million for the quarterly periods ended June 30, 2012, June 30, 2011 and March 31, 2012 respectively.




















  
Federated Reports Q2 2012 Earnings
Page 5 of 10

Unaudited Condensed Consolidated Statements of Income
 
 
 
(in thousands, except per share data)
 
 
 
 
Six Months Ended
% Change
 
June 30, 2012
June 30, 2011
Revenue
 
 
 
Investment advisory fees, net
$
303,714

$
308,717

(2
)%
Administrative service fees, net
112,278

108,598

3

Other service fees, net
44,663

46,128

(3
)
Other, net
1,758

1,217

44

Total Revenue
462,413

464,660

0

 
 
 
 
Operating Expenses
 
 
 
Compensation and related
129,280

126,889

2

Distribution
124,021

122,490

1

Professional service fees
20,240

34,734

(42
)
Systems and communications
13,084

11,306

16

Office and occupancy
12,371

12,233

1

Advertising and promotional
6,244

6,003

4

Travel and related
6,087

5,692

7

Intangible asset related
843

5,408

(84
)
Other
10,876

11,322

(4
)
Total Operating Expenses
323,046

336,077

(4
)
Operating Income
139,367

128,583

8

 
 
 
 
Nonoperating Income (Expenses)
 
 
 
Investment income, net
5,618

4,991

13

Debt expense
(7,401
)
(9,215
)
(20
)
Other, net
(166
)
(109
)
52

Total Nonoperating Expenses, net
(1,949
)
(4,333
)
(55
)
Income before income taxes
137,418

124,250

11

Income tax provision
49,938

46,312

8

Net income including noncontrolling interest in subsidiaries
87,480

77,938

12

Less: Net income attributable to the noncontrolling interests in subsidiaries
4,745

2,295

107

Net Income
$
82,735

$
75,643

9
 %
 
 
 
 
Amounts Attributable to Federated
 
 
 
Earnings Per Share1
 
 
 
Basic and Diluted
$
0.80

$
0.73

10
 %
Weighted-average shares outstanding
 
 
 
Basic
100,229

100,748

 
Diluted
100,229

100,793

 
Dividends declared per share
$
0.48

$
0.48

 
1) Unvested share-based payment awards that receive non-forfeitable dividend rights are considered participating securities and are required to be included in the computation of earnings per share under the “two-class method.” Total income available to participating restricted shareholders was $3.0 million and $2.5 million for the six months ended June 30, 2012 and June 30, 2011, respectively.
 



  
Federated Reports Q2 2012 Earnings
Page 6 of 10

Unaudited Condensed Consolidated Balance Sheets
 
 
(in thousands)
June 30, 2012
Dec. 31, 2011
Assets


Cash and other investments
$
327,129

$
322,317

Other current assets
50,019

44,194

Intangible assets, net and goodwill
721,310

720,926

Other long-term assets
64,153

63,419

Total Assets
$
1,162,611

$
1,150,856

 
 
 
Liabilities and Equity
 
 
Current liabilities
$
162,702

$
187,356

Long-term debt
297,500

318,750

Other long-term liabilities
113,990

101,567

Equity excluding treasury stock
1,355,504

1,315,664

Treasury stock
(767,085
)
(772,481
)
Total Liabilities and Equity
$
1,162,611

$
1,150,856




  
Federated Reports Q2 2012 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, 2012
March 31, 2012
June 30, 2011
 
June 30, 2012
June 30, 2011
Equity Funds
 
 
 
 
 
 
Beginning assets
$
23,612

$
21,930

$
22,848

 
$
21,930

$
22,626

Sales
1,529

1,823

1,456

 
3,352

3,014

Redemptions
(1,797
)
(2,187
)
(1,701
)
 
(3,984
)
(3,724
)
Net redemptions
(268
)
(364
)
(245
)
 
(632
)
(710
)
Net exchanges
3

(12
)
(5
)
 
(9
)
(4
)
Market gains and losses/reinvestments1
(676
)
2,058

80

 
1,382

766

Ending assets
$
22,671

$
23,612

$
22,678

 
$
22,671

$
22,678


 
 
 
 
 
 
Equity Separate Accounts2
 
 
 
 
 
 
Beginning assets
$
10,505

$
8,957

$
8,793

 
$
8,957

$
8,176

Sales3
836

1,461

573

 
2,297

1,265

Redemptions3
(697
)
(486
)
(744
)
 
(1,183
)
(1,350
)
Net sales (redemptions)3
139

975

(171
)
 
1,114

(85
)
Net exchanges
(9
)
0

8

 
(9
)
21

Market gains and losses/reinvestments1
(85
)
573

72

 
488

590

Ending assets
$
10,550

$
10,505

$
8,702

 
$
10,550

$
8,702

 
 
 
 
 
 
 
Total Equity2
 
 
 
 
 
 
Beginning assets
$
34,117

$
30,887

$
31,641

 
$
30,887

$
30,802

Sales3
2,365

3,284

2,029

 
5,649

4,279

Redemptions3
(2,494
)
(2,673
)
(2,445
)
 
(5,167
)
(5,074
)
Net (redemptions) sales3
(129
)
611

(416
)
 
482

(795
)
Net exchanges
(6
)
(12
)
3

 
(18
)
17

Market gains and losses/reinvestments1
(761
)
2,631

152

 
1,870

1,356

Ending assets
$
33,221

$
34,117

$
31,380

 
$
33,221

$
31,380

 
 
 
 
 
 
 
Fixed-Income Funds
 
 
 
 
 
 
Beginning assets
$
38,526

$
37,241

$
32,689

 
$
37,241

$
31,933

Sales
5,636

4,822

4,335

 
10,458

9,245

Redemptions
(3,639
)
(3,987
)
(4,339
)
 
(7,626
)
(8,720
)
Net sales (redemptions)
1,997

835

(4
)
 
2,832

525

Net exchanges
(1,510
)
(59
)
1,818

 
(1,569
)
1,806

Market gains and losses/reinvestments1
481

509

371

 
990

610

Ending assets
$
39,494

$
38,526

$
34,874

 
$
39,494

$
34,874

 
 
 
 
 
 
 
Fixed-Income Separate Accounts2
 
 
 
 
 
 
Beginning assets
$
7,695

$
7,573

$
9,067

 
$
7,573

$
8,772

Sales3
624

220

534

 
844

1,085

Redemptions3
(521
)
(280
)
(405
)
 
(801
)
(779
)
Net sales (redemptions)3
103

(60
)
129

 
43

306

Net exchanges
1,592

0

(1,807
)
 
1,592

(1,807
)
Market gains and losses/reinvestments1
84

182

155

 
266

273

Ending assets
$
9,474

$
7,695

$
7,544

 
$
9,474

$
7,544

 
 
 
 
 
 
 
Total Fixed Income2
 
 
 
 
 
 
Beginning assets
$
46,221

$
44,814

$
41,756

 
$
44,814

$
40,705

Sales3
6,260

5,042

4,869

 
11,302

10,330

Redemptions3
(4,160
)
(4,267
)
(4,744
)
 
(8,427
)
(9,499
)
Net sales3
2,100

775

125

 
2,875

831

Net exchanges
82

(59
)
11

 
23

(1
)
Market gains and losses/reinvestments1
565

691

526

 
1,256

883

Ending assets
$
48,968

$
46,221

$
42,418

 
$
48,968

$
42,418

1) Reflects the approximate changes in the market 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, Redemptions or Net sales (redemptions) are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses/reinvestments.



  
Federated Reports Q2 2012 Earnings
Page 8 of 10

Changes in Liquidation Portfolios
(in millions)
 
Quarter Ended
 
Six Months Ended
 
June 30, 2012
March 31, 2012
June 30, 2011
 
June 30, 2012
June 30, 2011
Liquidation Portfolios1
 
 
 
 
 
 
Beginning assets
$
8,583

$
8,856

$
10,384

 
$
8,856

$
10,708

Sales2
0

0

0

 
0

2

Redemptions2
(458
)
(273
)
(420
)
 
(731
)
(745
)
Net redemptions2
(458
)
(273
)
(420
)
 
(731
)
(743
)
Market gains and losses/reinvestments3
(1
)
0

0

 
(1
)
(1
)
Ending Assets
$
8,124

$
8,583

$
9,964

 
$
8,124

$
9,964

1) Liquidation portfolios include portfolios of distressed fixed-income securities. 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 these portfolios are lower than those of traditional separate account mandates.
2) Sales, Redemptions or Net redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of Market gains and losses/reinvestments.
3) Reflects the approximate changes in the market 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 2012 Earnings
Page 9 of 10


 
 
 
 
 
 
MANAGED ASSETS
(in millions)
June 30, 2012
March 31, 2012
Dec. 31, 2011
Sept. 30, 2011
June 30, 2011
By Asset Class
 
 
 
 
 
Equity
$
33,221

$
34,117

$
30,887

$
27,971

$
31,380

Fixed-income
48,968

46,221

44,814

42,883

42,418

Money market
265,548

274,704

285,140

271,653

265,651

Liquidation portfolios1
8,124

8,583

8,856

9,144

9,964

Total Managed Assets
$
355,861

$
363,625

$
369,697

$
351,651

$
349,413

By Product Type
 
 
 
 
 
Funds:
 
 
 
 
 
Equity
$
22,671

$
23,612

$
21,930

$
20,140

$
22,678

Fixed-income
39,494

38,526

37,241

35,620

34,874

Money market
238,610

245,232

255,857

245,293

236,077

Total Fund Assets
$
300,775

$
307,370

$
315,028

$
301,053

$
293,629

Separate Accounts:
 
 
 
 
 
Equity
$
10,550

$
10,505

$
8,957

$
7,831

$
8,702

Fixed-income
9,474

7,695

7,573

7,263

7,544

Money market
26,938

29,472

29,283

26,360

29,574

Total Separate Accounts
$
46,962

$
47,672

$
45,813

$
41,454

$
45,820

Total Liquidation Portfolios1
$
8,124

$
8,583

$
8,856

$
9,144

$
9,964

Total Managed Assets
$
355,861

$
363,625

$
369,697

$
351,651

$
349,413

 
AVERAGE MANAGED ASSETS
Quarter Ended
(in millions)
June 30, 2012
March 31, 2012
Dec. 31, 2011
Sept. 30, 2011
June 30, 2011
By Asset Class
 
 
 
 
 
Equity
$
32,993

$
32,827

$
29,965

$
29,699

$
31,520

Fixed-income
47,747

45,792

43,980

43,001

42,127

Money market
271,507

282,801

275,295

266,756

270,411

Liquidation portfolios1
8,353

8,703

9,030

9,309

10,138

Total Avg. Assets
$
360,600

$
370,123

$
358,270

$
348,765

$
354,196

By Product Type
 
 
 
 
 
Funds:
 
 
 
 
 
Equity
$
22,642

$
23,075

$
21,451

$
21,491

$
22,741

Fixed-income
38,901

38,128

36,546

35,478

33,534

Money market
243,454

251,825

249,324

239,406

239,642

Total Avg. Fund Assets
$
304,997

$
313,028

$
307,321

$
296,375

$
295,917

Separate Accounts:
 
 
 
 
 
Equity
$
10,351

$
9,752

$
8,514

$
8,208

$
8,779

Fixed-income
8,846

7,664

7,434

7,523

8,593

Money market
28,053

30,976

25,971

27,350

30,769

Total Avg. Separate Accounts
$
47,250

$
48,392

$
41,919

$
43,081

$
48,141

Total Avg. Liquidation Portfolios1
$
8,353

$
8,703

$
9,030

$
9,309

$
10,138

Total Avg. Managed Assets
$
360,600

$
370,123

$
358,270

$
348,765

$
354,196

1) Liquidation portfolios include portfolios of distressed fixed-income securities. 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 these portfolios are lower than those of traditional separate account mandates.



  
Federated Reports Q2 2012 Earnings
Page 10 of 10

 
 
 
AVERAGE MANAGED ASSETS
Six months ended
(in millions)
June 30, 2012
June 30, 2011
By Asset Class
 
 
Equity
$
32,910

$
31,288

Fixed-income
46,769

41,657

Money market
277,154

271,976

Liquidation portfolios1
8,528

10,336

Total Avg. Assets
$
365,361

$
355,257

By Product Type
 
 
Funds:
 
 
Equity
$
22,859

$
22,670

Fixed-income
38,514

32,899

Money market
247,640

240,008

Total Avg. Fund Assets
$
309,013

$
295,577

Separate Accounts:
 
 
Equity
$
10,051

$
8,618

Fixed-income
8,255

8,758

Money market
29,514

31,968

Total Avg. Separate Accounts
$
47,820

$
49,344

Total Avg. Liquidation Portfolios1
$
8,528

$
10,336

Total Avg. Managed Assets
$
365,361

$
355,257

1) Liquidation portfolios include portfolios of distressed fixed-income securities. 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 these portfolios are lower than those of traditional separate account mandates.