EX-99.1 2 a991-2018q2earningspressre.htm PRESS RELEASE Exhibit
Exhibit 99.1

image011a19.jpg

Federated Investors, Inc. Reports Second Quarter 2018 Earnings
•
Board declares $0.27 per share quarterly dividend
(PITTSBURGH, Pa., July 26, 2018) — Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.38 and net income of $38.8 million for Q2 2018. Federated reported YTD 2018 EPS of $0.98 and net income of $99.2 million. Federated's Q2 2018 and YTD 2018 results include a $27.2 million pre-tax net expense, representing $0.21 per diluted share net of tax, primarily related to two derivative instruments entered into in connection with Federated's Q3 2018 acquisition of a 60 percent interest in Hermes Fund Managers Limited (Hermes). The expense was partially offset by a foreign exchange gain related to British pound sterling held at quarter end. In addition, Federated has incurred $1.3 million and $2.8 million for Q2 2018 and YTD 2018, respectively, in transaction-related costs directly attributable to the Hermes acquisition. For Q2 2017, Federated reported EPS of $0.53 and net income of $53.5 million. Federated's 2017 Q2 YTD results were $1.01 of EPS and $103.1 million of net income.
Federated's total managed assets were $379.7 billion at June 30, 2018, up $19.3 billion or 5 percent from $360.4 billion at June 30, 2017 and down $12.5 billion or 3 percent from $392.2 billion at March 31, 2018. Total average managed assets for Q2 2018 were $386.0 billion, up $26.0 billion or 7 percent from $360.0 billion reported for Q2 2017 and down $12.0 billion or 3 percent from $398.0 billion reported for Q1 2018.
"Equity fund net sales in the second quarter were led by Federated Kaufmann Small Cap Fund, which seeks to invest in great small companies that are capable of delivering exceptional new products and profitability over the long term," said J. Christopher Donahue, president and chief executive officer. "In fixed-income, investors sought a range of products, from shorter duration strategies to multisector funds, that offer various solutions for investing in a rising-rate environment."
Federated's board of directors declared a dividend of $0.27 per share. The dividend is payable on Aug. 15, 2018 to shareholders of record as of Aug. 8, 2018. During Q2 2018, Federated purchased 714,865 shares of Federated class B common stock for $17.2 million.
Federated's equity assets were $62.9 billion at June 30, 2018, down $2.9 billion or 4 percent from $65.8 billion at June 30, 2017 and down $1.1 billion or 2 percent from $64.0 billion at March 31, 2018. Top-selling equity funds during Q2 2018 on a net basis were Federated Kaufmann Small Cap Fund, Federated MDT Small Cap Core Fund, Federated MDT Small Cap Growth Fund, Federated International Leaders Fund and Federated MDT Mid Cap Growth Fund.
Federated's fixed-income assets were $61.5 billion at June 30, 2018, up $9.0 billion or 17 percent from $52.5 billion at June 30, 2017 and down $0.8 billion or 1 percent from $62.3 billion at March 31, 2018. Top-selling fixed-income funds during Q2 2018 on a net basis were Federated Sterling Cash Plus Fund, Federated Short-Term Income Fund, Federated Total Return Bond Fund, Federated Government Ultrashort Duration Fund and Federated Floating Rate Strategic Income Fund.
Money market assets were $255.2 billion at June 30, 2018, up $13.1 billion or 5 percent from $242.1 billion at June 30, 2017 and down $10.7 billion or 4 percent from $265.9 billion at March 31, 2018. Money market fund assets were $172.7 billion at June 30, 2018, down $0.6 billion from $173.3 billion at June 30, 2017 and down $9.7 billion or 5 percent from $182.4 billion at

MEDIA:
MEDIA:
ANALYSTS:
Ed Costello 412-288-7538
Meghan McAndrew 412-288-8103
Ray Hanley 412-288-1920
 
Federated Reports Q2 2018 Earnings
Page 2 of 10

March 31, 2018. Federated's money market separate account assets were $82.6 billion at June 30, 2018, up $13.8 billion or 20 percent from $68.8 billion at June 30, 2017 and down $0.9 billion or 1 percent from $83.5 billion at March 31, 2018.
Financial Summary
Q2 2018 vs. Q2 2017
Revenue decreased by $16.8 million or 6 percent primarily due to the adoption of the new revenue recognition accounting standard. In addition, revenue decreased due to higher voluntary fee waivers for certain money market funds for competitive purposes and a change in the mix of average money market assets.
During Q2 2018, Federated derived 61 percent of its revenue from equity and fixed-income assets (44 percent from equity assets and 17 percent from fixed-income assets) and 39 percent from money market assets.
Operating expenses decreased $13.3 million or 7 percent primarily due to decreases in distribution expense related to a change in the mix of average money market fund assets and the adoption of the new revenue recognition accounting standard.
Nonoperating (expenses) income, net decreased $31.8 million primarily due to a loss from two foreign currency forward derivative instruments entered into in connection with the Hermes acquisition (FX forward loss). The first derivative was used to hedge against foreign exchange rate fluctuations associated with the payment related to the Hermes acquisition. The second derivative forward allowed Federated to effectively close the initial forward, locking in the foreign exchange rate and amount due at settlement on Aug. 1, 2018.
Q2 2018 vs. Q1 2018
Revenue decreased $7.9 million or 3 percent primarily due to lower average assets across all asset classes.
Operating expenses decreased by $8.9 million or 5 percent primarily due to a decrease in compensation and related expenses resulting from the seasonal decrease in payroll taxes and lower incentive compensation, as well as lower distribution expenses primarily from lower average assets.
Nonoperating (expenses) income, net decreased $28.3 million primarily due to the FX forward loss.
YTD 2018 vs. YTD 2017
Revenue decreased $26.5 million or 5 percent primarily due to the adoption of the new revenue recognition accounting standard. In addition, revenue decreased due to a change in the mix of average money market assets and a previously disclosed Q1 2017 change in a customer relationship. These decreases in revenue were partially offset by an increase in revenue from higher average equity assets.
For the first half of 2018, Federated derived 61 percent of its revenue from equity and fixed-income assets (44 percent from equity assets and 17 percent from fixed-income assets) and 39 percent from money market assets.
Operating expenses decreased $24.9 million or 6 percent. Distribution expense decreased primarily due to a change in the mix of average money market fund assets, the adoption of the new revenue recognition accounting standard and the previously disclosed Q1 2017 change in a customer relationship. This decrease was partially offset by an increase in compensation and related expense due to an increase in incentive compensation and an increase in professional service fees expense primarily related to acquisition-related expenses.


 
Federated Reports Q2 2018 Earnings
Page 3 of 10

Nonoperating (expenses) income, net decreased $35.6 million primarily due to the FX forward loss. In addition, investment income, net decreased due to a decrease in the market value of investments, primarily from securities held by consolidated investment companies and a decrease in gains realized from the redemption of investments in the first half of 2018 as compared to the same period in 2017.
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, acquisitions, 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).
Federated will host an earnings conference call at 9 a.m. Eastern on July 27, 2018. 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 27, 2018 until Aug. 3, 2018 by calling 877-481-4010 (domestic) or 919-882-2331 (international) and entering access code 33785. 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 $379.7 billion in assets as of June 30, 2018. With 108 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 6 percent of equity fund managers in the industry, the top 8 percent of money market fund managers and the top 10 percent of fixed-income fund managers1. Federated also ranks as the fifth-largest SMA manager2. For more information, visit FederatedInvestors.com.
###
1) Strategic Insight, June 30, 2018. Based on assets under management in open-end funds.
2) Money Management Institute/Dover Financial Research, Q1 2018.
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, customer relationships, acquisitions 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 Q2 2018 Earnings
Page 4 of 10

Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
 
 
 
 
 
 
 
Quarter Ended
% Change Q2 2017 to Q2 2018
 
Quarter Ended
% Change Q1 2018 to Q2 2018
 
June 30, 2018
June 30, 2017
 
March 31, 2018
Revenue
 
 
 
 
 
 
Investment advisory fees, net
$
168,127

$
179,322

(6
)%
 
$
174,266

(4)
 %
Administrative service fees, net—affiliates
48,370

45,601

6

 
49,023

(1
)
Other service fees, net
39,496

47,873

(17
)
 
40,563

(3
)
Total Revenue
255,993

272,796

(6
)
 
263,852

(3
)
 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
Compensation and related
74,147

71,370

4

 
78,374

(5
)
Distribution
69,446

87,174

(20
)
 
72,498

(4
)
Professional service fees
9,278

6,116

52

 
9,631

(4
)
Systems and communications
7,751

8,041

(4
)
 
8,433

(8
)
Office and occupancy
7,365

7,161

3

 
7,541

(2
)
Travel and related
3,523

2,958

19

 
2,821

25

Advertising and promotional
3,237

3,095

5

 
3,228

0

Other
489

2,670

(82
)
 
1,655

(70
)
Total Operating Expenses
175,236

188,585

(7
)
 
184,181

(5
)
Operating Income
80,757

84,211

(4
)
 
79,671

1

 
 
 
 
 
 
 
Nonoperating (Expenses) Income
 
 
 
 
 
 
Investment income, net
1,377

3,937

(65
)
 
718

92

Debt expense
(1,431
)
(1,182
)
21

 
(1,330
)
8

Other, net
(28,974
)
(33
)
NM

 
(143
)
NM

Total Nonoperating (Expenses) Income, net
(29,028
)
2,722

NM

 
(755
)
NM

Income before income taxes
51,729

86,933

(40
)
 
78,916

(34
)
Income tax provision1
13,062

32,274

(60
)
 
18,910

(31
)
Net income including the noncontrolling interests in subsidiaries
38,667

54,659

(29
)
 
60,006

(36
)
Less: Net (loss) income attributable to the noncontrolling interests in subsidiaries
(155
)
1,208

(113
)
 
(325
)
52

Net Income
$
38,822

$
53,451

(27
)%
 
$
60,331

(36)
 %
 
 
 
 
 
 
 
Amounts Attributable to Federated Investors, Inc.
 
 
 
 
 
 
Earnings Per Share2
 
 
 
 
 
 
Basic and diluted
$
0.38

$
0.53

(28
)%
 
$
0.60

(37)
 %
Weighted-average shares outstanding
 
 
 
 
 
 
Basic
97,193

97,581

 
 
97,187

 
Diluted
97,194

97,582

 
 
97,189

 
Dividends declared per share
$
0.27

$
0.25

 
 
$
0.25

 
1) June 30, 2018 and March 31, 2018 reflect a lower effective tax rate due to the enactment of the Tax Cuts and Jobs Act of 2017 (Tax Act).
2) 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 $1.5 million, $2.2 million and $2.4 million available to unvested restricted shareholders for the quarterly periods ended June 30, 2018, June 30, 2017 and March 31, 2018, respectively, was excluded from the computation of earnings per share.



 
Federated Reports Q2 2018 Earnings
Page 5 of 10

Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
 
 
 
 
Six Months Ended
 
 
June 30, 2018
June 30, 2017
% Change
Revenue
 
 
 
Investment advisory fees, net
$
342,393

$
360,639

(5
)%
Administrative service fees, net—affiliates
97,393

92,302

6

Other service fees, net
80,059

93,356

(14
)
Total Revenue
519,845

546,297

(5
)
 
 
 
 
Operating Expenses
 
 
 
Compensation and related
152,521

144,772

5

Distribution
141,945

177,533

(20
)
Professional service fees
18,908

13,194

43

Systems and communications
16,184

16,266

(1
)
Office and occupancy
14,906

14,513

3

Advertising and promotional
6,465

6,051

7

Travel and related
6,344

5,893

8

Other
2,144

6,091

(65
)
Total Operating Expenses
359,417

384,313

(6
)
Operating Income
160,428

161,984

(1
)
 
 
 
 
Nonoperating (Expenses) Income
 
 
 
Investment income, net
2,095

8,151

(74
)
Debt expense
(2,761
)
(2,283
)
21

Other, net
(29,117
)
(34
)
NM

Total Nonoperating (Expenses) Income, net
(29,783
)
5,834

NM

Income before income taxes
130,645

167,818

(22
)
Income tax provision1
31,972

62,132

(49
)
Net income including the noncontrolling interests in subsidiaries
98,673

105,686

(7
)
Less: Net (loss) income attributable to the noncontrolling interests in subsidiaries
(480
)
2,594

(119
)
Net Income
$
99,153

$
103,092

(4
)%
 
 
 
 
Amounts Attributable to Federated Investors, Inc.
 
 
 
Earnings Per Share2
 
 
 
Basic and diluted
$
0.98

$
1.01

(3
)%
Weighted-average shares outstanding
 
 
 
Basic
97,191

97,722

 
Diluted
97,192

97,723

 
Dividends declared per share
$
0.52

$
0.50

 
1) June 30, 2018 reflects a lower effective tax rate due to the enactment of the Tax Act.
2)
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 $3.9 million and $4.1 million available to unvested restricted shareholders for the six months ended June 30, 2018 and June 30, 2017, respectively, was excluded from the computation of earnings per share.




 
Federated Reports Q2 2018 Earnings
Page 6 of 10

Unaudited Condensed Consolidated Balance Sheets
 
 
(in thousands)
June 30, 2018
Dec. 31, 2017
Assets
 
 
  Cash and other investments
$
417,561

$
369,538

  Other current assets
66,619

67,736

  Intangible assets, net, including goodwill
736,629

736,915

  Other long-term assets
55,506

57,221

  Total Assets
$
1,276,315

$
1,231,410

 
 
 
Liabilities, Redeemable Noncontrolling Interests and Equity
 
 
  Current liabilities
$
135,060

$
128,849

  Long-term debt
178,000

170,000

  Other long-term liabilities
143,146

141,183

  Redeemable noncontrolling interests
20,984

30,163

  Equity excluding treasury stock
1,087,402

1,039,947

  Treasury stock
(288,277
)
(278,732
)
  Total Liabilities, Redeemable Noncontrolling Interests and Equity
$
1,276,315

$
1,231,410


































 
Federated Reports Q2 2018 Earnings
Page 7 of 10

Unaudited Changes in Equity and Fixed-Income Fund and Separate Account Assets
(in millions)
 
Quarter Ended
 
Six Months Ended
 
June 30, 2018
March 31, 2018
June 30, 2017
 
June 30, 2018
June 30, 2017
Equity funds
 
 
 
 
 
 
Beginning assets
$
36,421

$
38,101

$
37,159

 
$
38,101

$
36,231

Sales
1,778

1,849

1,411

 
3,627

3,114

Redemptions
(2,729
)
(3,059
)
(2,394
)
 
(5,788
)
(5,441
)
Net redemptions
(951
)
(1,210
)
(983
)
 
(2,161
)
(2,327
)
Net exchanges
200

(128
)
(74
)
 
72

(14
)
Acquisition-related
0

0

0

 
0

287

Market gains and losses1
792

(342
)
1,123

 
450

3,048

Ending assets
$
36,462

$
36,421

$
37,225

 
$
36,462

$
37,225

 
 
 
 
 
 
 
Equity separate accounts2
 
 
 
 
 
 
Beginning assets
$
27,546

$
30,038

$
27,611

 
$
30,038

$
26,150

Sales3
1,095

1,514

1,852

 
2,609

3,764

Redemptions3
(2,622
)
(2,493
)
(1,835
)
 
(5,115
)
(3,829
)
Net (redemptions) sales3
(1,527
)
(979
)
17

 
(2,506
)
(65
)
Net exchanges
(2
)
3

0

 
1

0

Market gains and losses1
466

(1,516
)
934

 
(1,050
)
2,477

Ending assets
$
26,483

$
27,546

$
28,562

 
$
26,483

$
28,562

 
 
 
 
 
 
 
Total equity2
 
 
 
 
 
 
Beginning assets
$
63,967

$
68,139

$
64,770

 
$
68,139

$
62,381

Sales3
2,873

3,363

3,263

 
6,236

6,878

Redemptions3
(5,351
)
(5,552
)
(4,229
)
 
(10,903
)
(9,270
)
Net redemptions3
(2,478
)
(2,189
)
(966
)
 
(4,667
)
(2,392
)
Net exchanges
198

(125
)
(74
)
 
73

(14
)
Acquisition-related
0

0

0

 
0

287

Market gains and losses1
1,258

(1,858
)
2,057

 
(600
)
5,525

Ending assets
$
62,945

$
63,967

$
65,787

 
$
62,945

$
65,787

 
 
 
 
 
 
 
Fixed-income funds
 
 
 
 
 
 
Beginning assets
$
40,578

$
41,200

$
40,239

 
$
41,200

$
39,434

Sales
3,832

4,107

3,729

 
7,939

7,715

Redemptions
(4,218
)
(4,575
)
(3,591
)
 
(8,793
)
(7,422
)
Net (redemptions) sales
(386
)
(468
)
138

 
(854
)
293

Net exchanges
(207
)
127

10

 
(80
)
(14
)
Acquisition-related
0

0

0

 
0

148

Market gains and losses1
(58
)
(281
)
493

 
(339
)
1,019

Ending assets
$
39,927

$
40,578

$
40,880

 
$
39,927

$
40,880

 
 
 
 
 
 
 
Fixed-income separate accounts2
 
 
 
 
 
 
Beginning assets
$
21,676

$
23,017

$
11,541

 
$
23,017

$
11,880

Sales3
923

800

277

 
1,723

491

Redemptions3
(716
)
(2,027
)
(401
)
 
(2,743
)
(1,096
)
Net sales (redemptions)3
207

(1,227
)
(124
)
 
(1,020
)
(605
)
Net exchanges
0

0

0

 
0

(56
)
Market gains and losses1
(325
)
(114
)
210

 
(439
)
408

Ending assets
$
21,558

$
21,676

$
11,627

 
$
21,558

$
11,627

 
 
 
 
 
 
 
Total fixed income2
 
 
 
 
 
 
Beginning assets
$
62,254

$
64,217

$
51,780

 
$
64,217

$
51,314

Sales3
4,755

4,907

4,006

 
9,662

8,206

Redemptions3
(4,934
)
(6,602
)
(3,992
)
 
(11,536
)
(8,518
)
Net (redemptions) sales3
(179
)
(1,695
)
14

 
(1,874
)
(312
)
Net exchanges
(207
)
127

10

 
(80
)
(70
)
Acquisition-related
0

0

0

 
0

148

Market gains and losses1
(383
)
(395
)
703

 
(778
)
1,427

Ending assets
$
61,485

$
62,254

$
52,507

 
$
61,485

$
52,507

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 2018 Earnings
Page 8 of 10

Unaudited Total Changes in Equity and Fixed-Income Assets
(in millions)
 
Quarter Ended
 
Six Months Ended
 
June 30, 2018
March 31, 2018
June 30, 2017
 
June 30, 2018
June 30, 2017
 
 
 
 
 
 
 
Funds
 
 
 
 
 
 
Beginning assets
$
76,999

$
79,301

$
77,398

 
$
79,301

$
75,665

Sales
5,610

5,956

5,140

 
11,566

10,829

Redemptions
(6,947
)
(7,634
)
(5,985
)
 
(14,581
)
(12,863
)
Net redemptions
(1,337
)
(1,678
)
(845
)
 
(3,015
)
(2,034
)
Net exchanges
(7
)
(1
)
(64
)
 
(8
)
(28
)
Acquisition-related
0

0

0

 
0

435

Market gains and losses1
734

(623
)
1,616

 
111

4,067

Ending assets
$
76,389

$
76,999

$
78,105

 
$
76,389

$
78,105

 
 
 
 
 
 
 
Separate accounts2
 
 
 
 
 
 
Beginning assets
$
49,222

$
53,055

$
39,152

 
$
53,055

$
38,030

Sales3
2,018

2,314

2,129

 
4,332

4,255

Redemptions3
(3,338
)
(4,520
)
(2,236
)
 
(7,858
)
(4,925
)
Net redemptions3
(1,320
)
(2,206
)
(107
)
 
(3,526
)
(670
)
Net exchanges
(2
)
3

0

 
1

(56
)
Market gains and losses1
141

(1,630
)
1,144

 
(1,489
)
2,885

Ending assets
$
48,041

$
49,222

$
40,189

 
$
48,041

$
40,189

 
 
 
 
 
 
 
Total assets2
 
 
 
 
 
 
Beginning assets
$
126,221

$
132,356

$
116,550

 
$
132,356

$
113,695

Sales3
7,628

8,270

7,269

 
15,898

15,084

Redemptions3
(10,285
)
(12,154
)
(8,221
)
 
(22,439
)
(17,788
)
Net redemptions3
(2,657
)
(3,884
)
(952
)
 
(6,541
)
(2,704
)
Net exchanges
(9
)
2

(64
)
 
(7
)
(84
)
Acquisition-related
0

0

0

 
0

435

Market gains and losses1
875

(2,253
)
2,760

 
(1,378
)
6,952

Ending assets
$
124,430

$
126,221

$
118,294

 
$
124,430

$
118,294

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 2018 Earnings
Page 9 of 10

Unaudited Managed Assets
(in millions)
June 30, 2018

March 31, 2018

Dec. 31, 2017

Sept. 30, 2017

June 30, 2017

By Asset Class
 
 
 
 
 
Equity
$
62,945

$
63,967

$
68,139

$
67,055

$
65,787

Fixed-income
61,485

62,254

64,217

52,772

52,507

Money market
255,247

265,944

265,214

243,840

242,096

Total Managed Assets
$
379,677

$
392,165

$
397,570

$
363,667

$
360,390

By Product Type
 
 
 
 
 
Funds:
 
 
 
 
 
Equity
$
36,462

$
36,421

$
38,101

$
37,741

$
37,225

Fixed-income
39,927

40,578

41,200

41,214

40,880

Money market
172,671

182,437

185,536

177,865

173,338

Total Fund Assets
$
249,060

$
259,436

$
264,837

$
256,820

$
251,443

Separate Accounts:
 
 
 
 
 
Equity
$
26,483

$
27,546

$
30,038

$
29,314

$
28,562

Fixed-income
21,558

21,676

23,017

11,558

11,627

Money market
82,576

83,507

79,678

65,975

68,758

Total Separate Account Assets
$
130,617

$
132,729

$
132,733

$
106,847

$
108,947

Total Managed Assets
$
379,677

$
392,165

$
397,570

$
363,667

$
360,390

 
Unaudited Average Managed Assets
Quarter Ended
(in millions)
June 30, 2018

March 31, 2018

Dec. 31, 2017

Sept. 30, 2017

June 30, 2017

By Asset Class
 
 
 
 
 
Equity
$
63,911

$
66,833

$
67,466

$
66,127

$
65,399

Fixed-income
61,698

63,594

64,351

52,631

52,291

Money market
260,371

267,546

250,197

241,749

242,298

Total Avg. Managed Assets
$
385,980

$
397,973

$
382,014

$
360,507

$
359,988

By Product Type
 
 
 
 
 
Funds:
 
 
 
 
 
Equity
$
36,784

$
37,728

$
37,926

$
37,301

$
37,325

Fixed-income
40,249

41,078

41,240

40,967

40,670

Money market
175,885

181,856

176,918

174,358

172,626

Total Avg. Fund Assets
$
252,918

$
260,662

$
256,084

$
252,626

$
250,621

Separate Accounts:
 
 
 
 
 
Equity
$
27,127

$
29,105

$
29,540

$
28,826

$
28,074

Fixed-income
21,449

22,516

23,111

11,664

11,621

Money market
84,486

85,690

73,279

67,391

69,672

Total Avg. Separate Account Assets
$
133,062

$
137,311

$
125,930

$
107,881

$
109,367

Total Avg. Managed Assets
$
385,980

$
397,973

$
382,014

$
360,507

$
359,988



 
Federated Reports Q2 2018 Earnings
Page 10 of 10

Unaudited Average Managed Assets
 
Six Months Ended
(in millions)
 
June 30, 2018
 
June 30, 2017
By Asset Class
 
 
 
 
Equity
 
$
65,372

 
$
64,590

Fixed-income
 
62,646

 
52,047

Money market
 
263,958

 
244,944

Total Avg. Managed Assets
 
$
391,976

 
$
361,581

By Product Type
 
 
 
 
Funds:
 
 
 
 
Equity
 
$
37,256

 
$
37,141

Fixed-income
 
40,664

 
40,378

Money market
 
178,870

 
177,522

Total Avg. Fund Assets
 
$
256,790

 
$
255,041

Separate Accounts:
 
 
 
 
Equity
 
$
28,116

 
$
27,449

Fixed-income
 
21,982

 
11,669

Money market
 
85,088

 
67,422

Total Avg. Separate Account Assets
 
$
135,186

 
$
106,540

Total Avg. Managed Assets
 
$
391,976

 
$
361,581