Pennsylvania | 001-14818 | 25-1111467 | ||
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer | ||
of incorporation) | Identification No.) |
Emerging growth company | o |
FEDERATED INVESTORS, INC. | ||||
(Registrant) | ||||
Date | January 24, 2019 | By: | /s/ Thomas R. Donahue | |
Thomas R. Donahue | ||||
Chief Financial Officer |
• | Q4 2018 EPS of $0.61; full-year 2018 EPS of $2.18 |
• | Total assets under management reach a record $459.9 billion |
• | Board declares $0.27 per share quarterly dividend |
MEDIA: | MEDIA: | ANALYSTS: |
Ed Costello 412-288-7538 | Meghan McAndrew 412-288-8103 | Ray Hanley 412-288-1920 |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 2 of 13 |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 3 of 13 |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 4 of 13 |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 5 of 13 |
Unaudited Condensed Consolidated Statements of Income | |||||||||||||
(in thousands, except per share data) | |||||||||||||
Quarter Ended | % Change Q4 2017 to Q4 2018 | Quarter Ended | % Change Q3 2018 to Q4 2018 | ||||||||||
Dec. 31, 2018 | Dec. 31, 2017 | Sept. 30, 2018 | |||||||||||
Revenue | |||||||||||||
Investment advisory fees, net | $ | 213,990 | $ | 186,145 | 15 | % | $ | 217,036 | (1 | )% | |||
Administrative service fees, net | 52,022 | 49,051 | 6 | 49,855 | 4 | ||||||||
Other service fees, net | 41,204 | 43,116 | (4 | ) | 41,725 | (1 | ) | ||||||
Total Revenue | 307,216 | 278,312 | 10 | 308,616 | 0 | ||||||||
Operating Expenses | |||||||||||||
Compensation and related | 99,153 | 71,990 | 38 | 103,092 | (4 | ) | |||||||
Distribution | 73,482 | 80,408 | (9 | ) | 72,153 | 2 | |||||||
Systems and communications | 11,528 | 7,713 | 49 | 12,213 | (6 | ) | |||||||
Professional service fees | 10,461 | 8,922 | 17 | 13,535 | (23 | ) | |||||||
Office and occupancy | 10,384 | 7,453 | 39 | 9,332 | 11 | ||||||||
Advertising and promotional | 5,174 | 2,771 | 87 | 4,502 | 15 | ||||||||
Travel and related | 4,627 | 3,496 | 32 | 4,622 | 0 | ||||||||
Other | 4,453 | 4,725 | (6 | ) | 7,269 | (39 | ) | ||||||
Total Operating Expenses | 219,262 | 187,478 | 17 | 226,718 | (3 | ) | |||||||
Operating Income | 87,954 | 90,834 | (3 | ) | 81,898 | 7 | |||||||
Nonoperating (Expenses) Income | |||||||||||||
Investment (loss) income, net | (1,666 | ) | 3,601 | (146 | ) | 1,199 | (239 | ) | |||||
Debt expense | (1,522 | ) | (1,239 | ) | 23 | (1,602 | ) | (5 | ) | ||||
Other, net | (2,972 | ) | (9 | ) | NM | 2,240 | (233 | ) | |||||
Total Nonoperating (Expenses) Income, net | (6,160 | ) | 2,353 | (362 | ) | 1,837 | (435 | ) | |||||
Income before income taxes | 81,794 | 93,187 | (12 | ) | 83,735 | (2 | ) | ||||||
Income tax provision (benefit)1 | 20,162 | (38,787 | ) | (152 | ) | 21,741 | (7 | ) | |||||
Net income including the noncontrolling interests in subsidiaries | 61,632 | 131,974 | (53 | ) | 61,994 | (1 | ) | ||||||
Less: Net income attributable to the noncontrolling interests in subsidiaries | 96 | 164 | (41 | ) | 2,386 | (96 | ) | ||||||
Net Income | $ | 61,536 | $ | 131,810 | (53 | )% | $ | 59,608 | 3 | % | |||
Amounts Attributable to Federated Investors, Inc. | |||||||||||||
Earnings Per Share2,3 | |||||||||||||
Basic and Diluted | $ | 0.61 | $ | 1.31 | (53 | )% | $ | 0.59 | 3 | % | |||
Weighted-Average Shares Outstanding | |||||||||||||
Basic | 96,758 | 97,084 | 96,664 | ||||||||||
Diluted | 96,758 | 97,086 | 96,664 | ||||||||||
Dividends Declared Per Share | $ | 0.27 | $ | 0.25 | $ | 0.27 |
1) | Dec. 31, 2017 includes a reduction of $70.4 million resulting from the revaluation of the net deferred tax liability due to the enactment of the Tax Act. |
2) | Dec. 31, 2017 includes an increase of $0.70 per share resulting from the revaluation of the net deferred tax liability due to the enactment of the Tax Act. |
3) | 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 $2.3 million, $5.0 million and $2.4 million available to unvested restricted Federated shareholders for the quarterly periods ended Dec. 31, 2018, Dec. 31, 2017 and Sept. 30, 2018, respectively, was excluded from the computation of basic earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share excludes net income of $0.3 million and $0.5 million available to unvested shareholders of a nonpublic consolidated subsidiary for the quarterly periods ended Dec. 31, 2018 and Sept. 30, 2018, respectively. |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 6 of 13 |
Unaudited Condensed Consolidated Statements of Income | |||||||||||
(in thousands, except per share data) | |||||||||||
Year Ended | |||||||||||
Dec. 31, 2018 | Dec. 31, 2017 | % Change | |||||||||
Revenue | |||||||||||
Investment advisory fees, net | $ | 773,418 | $ | 731,670 | 6 | % | |||||
Administrative service fees, net | 199,269 | 188,814 | 6 | ||||||||
Other service fees, net | 162,990 | 182,440 | (11 | ) | |||||||
Total Revenue | 1,135,677 | 1,102,924 | 3 | ||||||||
Operating Expenses | |||||||||||
Compensation and related | 354,765 | 289,215 | 23 | ||||||||
Distribution | 287,580 | 342,779 | (16 | ) | |||||||
Professional service fees | 42,903 | 29,064 | 48 | ||||||||
Systems and communications | 39,925 | 31,971 | 25 | ||||||||
Office and occupancy | 34,622 | 29,258 | 18 | ||||||||
Advertising and promotional | 16,141 | 11,166 | 45 | ||||||||
Travel and related | 15,594 | 12,646 | 23 | ||||||||
Other | 13,867 | 15,317 | (9 | ) | |||||||
Total Operating Expenses | 805,397 | 761,416 | 6 | ||||||||
Operating Income | 330,280 | 341,508 | (3 | ) | |||||||
Nonoperating (Expenses) Income | |||||||||||
Investment income, net | 1,628 | 15,308 | (89 | ) | |||||||
Debt expense | (5,885 | ) | (4,772 | ) | 23 | ||||||
Other, net | (29,849 | ) | (42 | ) | NM | ||||||
Total Nonoperating (Expenses) Income, net | (34,106 | ) | 10,494 | (425 | ) | ||||||
Income before income taxes | 296,174 | 352,002 | (16 | ) | |||||||
Income tax provision1 | 73,875 | 57,101 | 29 | ||||||||
Net income including the noncontrolling interests in subsidiaries | 222,299 | 294,901 | (25 | ) | |||||||
Less: Net income attributable to the noncontrolling interests in subsidiaries | 2,002 | 3,560 | (44 | ) | |||||||
Net Income | $ | 220,297 | $ | 291,341 | (24 | )% | |||||
Amounts Attributable to Federated Investors, Inc. | |||||||||||
Earnings Per Share2,3 | |||||||||||
Basic and Diluted | $ | 2.18 | $ | 2.87 | (24 | )% | |||||
Weighted-Average Shares Outstanding | |||||||||||
Basic | 96,949 | 97,411 | |||||||||
Diluted | 96,949 | 97,412 | |||||||||
Dividends Declared Per Share | $ | 1.06 | $ | 1.00 |
1) | Dec. 31, 2017 includes a reduction of $70.4 million resulting from the revaluation of the net deferred tax liability due to the enactment of the Tax Act. |
2) | Dec. 31, 2017 includes an increase of $0.69 per share resulting from the revaluation of the net deferred tax liability due to the enactment of the Tax Act. |
3) | 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 $8.6 million and $11.4 million available to unvested restricted shareholders for the years ended Dec. 31, 2018 and Dec. 31, 2017, respectively, was excluded from the computation of basic earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share excludes net income of $0.8 million available to unvested shareholders of a nonpublic consolidated subsidiary for the year ended Dec 31, 2018. |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 7 of 13 |
Unaudited Condensed Consolidated Balance Sheets | ||||||
(in thousands) | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Assets | ||||||
Cash and other investments | $ | 190,490 | $ | 369,538 | ||
Other current assets | 113,611 | 67,736 | ||||
Intangible assets, net, including goodwill | 1,149,247 | 736,915 | ||||
Other long-term assets | 90,335 | 57,221 | ||||
Total Assets | $ | 1,543,683 | $ | 1,231,410 | ||
Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||
Current liabilities | $ | 181,180 | $ | 128,849 | ||
Long-term debt | 135,000 | 170,000 | ||||
Other long-term liabilities | 187,869 | 141,183 | ||||
Redeemable noncontrolling interests | 182,513 | 30,163 | ||||
Equity excluding treasury stock | 1,144,458 | 1,039,947 | ||||
Treasury stock | (287,337 | ) | (278,732 | ) | ||
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ | 1,543,683 | $ | 1,231,410 |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 8 of 13 |
Unaudited Changes in Long-Term Assets - By Asset Class | ||||||||||||||||
(in millions) | Quarter Ended | Year Ended | ||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||||
Equity | ||||||||||||||||
Beginning assets | $ | 84,143 | $ | 57,973 | $ | 61,721 | $ | 62,816 | $ | 56,759 | ||||||
Sales1 | 4,274 | 3,757 | 2,483 | 13,955 | 11,614 | |||||||||||
Redemptions1 | (6,777 | ) | (5,288 | ) | (3,220 | ) | (22,401 | ) | (14,806 | ) | ||||||
Net redemptions1 | (2,503 | ) | (1,531 | ) | (737 | ) | (8,446 | ) | (3,192 | ) | ||||||
Net exchanges | (180 | ) | (11 | ) | 42 | (116 | ) | (11 | ) | |||||||
Acquisition-related | 0 | 24,700 | 0 | 24,700 | 287 | |||||||||||
Market gains and losses2 | (8,963 | ) | 3,012 | 1,790 | (6,457 | ) | 8,973 | |||||||||
Ending assets | $ | 72,497 | $ | 84,143 | $ | 62,816 | $ | 72,497 | $ | 62,816 | ||||||
Fixed Income | ||||||||||||||||
Beginning assets | $ | 65,369 | $ | 61,435 | $ | 52,701 | $ | 64,160 | $ | 51,314 | ||||||
Sales1 | 5,330 | 5,163 | 15,771 | 20,156 | 27,549 | |||||||||||
Redemptions1 | (7,424 | ) | (4,418 | ) | (4,617 | ) | (23,370 | ) | (17,032 | ) | ||||||
Net (redemptions) sales1 | (2,094 | ) | 745 | 11,154 | (3,214 | ) | 10,517 | |||||||||
Net exchanges | 214 | 2 | (50 | ) | 136 | (123 | ) | |||||||||
Acquisition-related | 0 | 2,732 | 0 | 2,732 | 148 | |||||||||||
Market gains and losses2 | (331 | ) | 455 | 355 | (656 | ) | 2,304 | |||||||||
Ending assets | $ | 63,158 | $ | 65,369 | $ | 64,160 | $ | 63,158 | $ | 64,160 | ||||||
Alternative / Private Markets3 | ||||||||||||||||
Beginning assets | $ | 18,621 | $ | 292 | $ | 407 | $ | 366 | $ | 458 | ||||||
Sales1 | 437 | 757 | 38 | 1,250 | 132 | |||||||||||
Redemptions1 | (530 | ) | (674 | ) | (74 | ) | (1,315 | ) | (251 | ) | ||||||
Net (redemptions) sales 1 | (93 | ) | 83 | (36 | ) | (65 | ) | (119 | ) | |||||||
Net exchanges | 1 | (2 | ) | (1 | ) | (2 | ) | 57 | ||||||||
Acquisition-related | 0 | 18,509 | 0 | 18,509 | 0 | |||||||||||
Market gains and losses2 | (211 | ) | (261 | ) | (4 | ) | (490 | ) | (30 | ) | ||||||
Ending assets | $ | 18,318 | $ | 18,621 | $ | 366 | $ | 18,318 | $ | 366 | ||||||
Multi-asset | ||||||||||||||||
Beginning assets | $ | 4,790 | $ | 4,730 | $ | 4,998 | $ | 5,014 | $ | 5,164 | ||||||
Sales1 | 119 | 120 | 112 | 493 | 483 | |||||||||||
Redemptions1 | (369 | ) | (211 | ) | (257 | ) | (1,044 | ) | (1,166 | ) | ||||||
Net redemptions1 | (250 | ) | (91 | ) | (145 | ) | (551 | ) | (683 | ) | ||||||
Net exchanges | (23 | ) | 4 | (7 | ) | (21 | ) | (28 | ) | |||||||
Acquisition-related | 0 | 45 | 0 | 45 | 0 | |||||||||||
Market gains and losses2 | (424 | ) | 102 | 168 | (394 | ) | 561 | |||||||||
Ending assets | $ | 4,093 | $ | 4,790 | $ | 5,014 | $ | 4,093 | $ | 5,014 | ||||||
Total Long-term Assets3 | ||||||||||||||||
Beginning assets | $ | 172,923 | $ | 124,430 | $ | 119,827 | $ | 132,356 | $ | 113,695 | ||||||
Sales1 | 10,160 | 9,797 | 18,404 | 35,854 | 39,778 | |||||||||||
Redemptions1 | (15,100 | ) | (10,591 | ) | (8,168 | ) | (48,130 | ) | (33,255 | ) | ||||||
Net (redemptions) sales1 | (4,940 | ) | (794 | ) | 10,236 | (12,276 | ) | 6,523 | ||||||||
Net exchanges | 12 | (7 | ) | (16 | ) | (3 | ) | (105 | ) | |||||||
Acquisition-related | 0 | 45,986 | 0 | 45,986 | 435 | |||||||||||
Market gains and losses2 | (9,929 | ) | 3,308 | 2,309 | (7,997 | ) | 11,808 | |||||||||
Ending assets | $ | 158,066 | $ | 172,923 | $ | 132,356 | $ | 158,066 | $ | 132,356 |
1) | For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return. |
2) | 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. |
3) | Includes $8.3 billion and $8.4 billion at Dec. 31, 2018 and Sept. 30, 2018, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 9 of 13 |
Unaudited Changes in Long-Term Assets - By Asset Class and Product Type | ||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2018 | ||||||||||||||||||||||||||||||
Equity | Fixed Income | Alternative / Private Markets | Multi-asset | Total | ||||||||||||||||||||||||||
Funds | Separate Accounts1 | Funds | Separate Accounts1 | Funds2 | Separate Accounts1 | Funds | Separate Accounts1 | Funds2 | Separate Accounts1 | |||||||||||||||||||||
Beginning assets | $ | 43,578 | $ | 40,565 | $ | 41,817 | $ | 23,552 | $ | 11,457 | $ | 7,164 | $ | 4,585 | $ | 205 | $ | 101,437 | $ | 71,486 | ||||||||||
Sales | 2,645 | 1,629 | 4,777 | 553 | 348 | 89 | 98 | 21 | 7,868 | 2,292 | ||||||||||||||||||||
Redemptions | (3,909 | ) | (2,868 | ) | (5,698 | ) | (1,726 | ) | (409 | ) | (121 | ) | (359 | ) | (10 | ) | (10,375 | ) | (4,725 | ) | ||||||||||
Net (redemptions) sales | (1,264 | ) | (1,239 | ) | (921 | ) | (1,173 | ) | (61 | ) | (32 | ) | (261 | ) | 11 | (2,507 | ) | (2,433 | ) | |||||||||||
Net exchanges | (180 | ) | 0 | 215 | (1 | ) | 1 | 0 | (23 | ) | 0 | 13 | (1 | ) | ||||||||||||||||
Market gains and losses3 | (5,550 | ) | (3,413 | ) | (621 | ) | 290 | (32 | ) | (179 | ) | (381 | ) | (43 | ) | (6,584 | ) | (3,345 | ) | |||||||||||
Ending assets | $ | 36,584 | $ | 35,913 | $ | 40,490 | $ | 22,668 | $ | 11,365 | $ | 6,953 | $ | 3,920 | $ | 173 | $ | 92,359 | $ | 65,707 | ||||||||||
Year Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2018 | ||||||||||||||||||||||||||||||
Equity | Fixed Income | Alternative / Private Markets | Multi-asset | Total | ||||||||||||||||||||||||||
Funds | Separate Accounts1 | Funds | Separate Accounts1 | Funds2 | Separate Accounts1 | Funds | Separate Accounts1 | Funds2 | Separate Accounts1 | |||||||||||||||||||||
Beginning assets | $ | 33,008 | $ | 29,808 | $ | 41,144 | $ | 23,016 | $ | 366 | $ | 0 | $ | 4,783 | $ | 231 | $ | 79,301 | $ | 53,055 | ||||||||||
Sales | 8,408 | 5,547 | 16,594 | 3,562 | 1,127 | 123 | 472 | 21 | 26,601 | 9,253 | ||||||||||||||||||||
Redemptions | (12,192 | ) | (10,209 | ) | (18,366 | ) | (5,004 | ) | (790 | ) | (525 | ) | (1,013 | ) | (31 | ) | (32,361 | ) | (15,769 | ) | ||||||||||
Net (redemptions) sales | (3,784 | ) | (4,662 | ) | (1,772 | ) | (1,442 | ) | 337 | (402 | ) | (541 | ) | (10 | ) | (5,760 | ) | (6,516 | ) | |||||||||||
Net exchanges | (115 | ) | (1 | ) | 138 | (2 | ) | (2 | ) | 0 | (21 | ) | 0 | 0 | (3 | ) | ||||||||||||||
Acquisition-related | 11,131 | 13,569 | 1,565 | 1,167 | 10,823 | 7,686 | 45 | 0 | 23,564 | 22,422 | ||||||||||||||||||||
Market gains and losses3 | (3,656 | ) | (2,801 | ) | (585 | ) | (71 | ) | (159 | ) | (331 | ) | (346 | ) | (48 | ) | (4,746 | ) | (3,251 | ) | ||||||||||
Ending assets | $ | 36,584 | $ | 35,913 | $ | 40,490 | $ | 22,668 | $ | 11,365 | $ | 6,953 | $ | 3,920 | $ | 173 | $ | 92,359 | $ | 65,707 |
1) | Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return. |
2) | Includes $8.3 billion at Dec. 31, 2018 of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
3) | 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. |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 10 of 13 |
Quarter Ended | Year Ended | |||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||||
Total Fund Assets1 | ||||||||||||||||
Beginning assets | $ | 101,437 | $ | 76,389 | $ | 78,955 | $ | 79,301 | $ | 75,665 | ||||||
Sales | 7,868 | 7,168 | 5,050 | 26,601 | 20,579 | |||||||||||
Redemptions | (10,375 | ) | (7,405 | ) | (5,831 | ) | (32,361 | ) | (24,261 | ) | ||||||
Net redemptions | (2,507 | ) | (237 | ) | (781 | ) | (5,760 | ) | (3,682 | ) | ||||||
Net exchanges | 13 | (4 | ) | (16 | ) | 0 | (49 | ) | ||||||||
Acquisition-related | 0 | 23,564 | 0 | 23,564 | 435 | |||||||||||
Market gains and losses2 | (6,584 | ) | 1,725 | 1,143 | (4,746 | ) | 6,932 | |||||||||
Ending assets | $ | 92,359 | $ | 101,437 | $ | 79,301 | $ | 92,359 | $ | 79,301 | ||||||
Total Separate Accounts Assets3 | ||||||||||||||||
Beginning assets | $ | 71,486 | $ | 48,041 | $ | 40,872 | $ | 53,055 | $ | 38,030 | ||||||
Sales4 | 2,292 | 2,629 | 13,354 | 9,253 | 19,199 | |||||||||||
Redemptions4 | (4,725 | ) | (3,186 | ) | (2,337 | ) | (15,769 | ) | (8,994 | ) | ||||||
Net (redemptions) sales4 | (2,433 | ) | (557 | ) | 11,017 | (6,516 | ) | 10,205 | ||||||||
Net exchanges | (1) | (3) | 0 | (3) | (56 | ) | ||||||||||
Acquisition-related | 0 | 22,422 | 0 | 22,422 | 0 | |||||||||||
Market gains and losses2 | (3,345 | ) | 1,583 | 1,166 | (3,251 | ) | 4,876 | |||||||||
Ending assets | $ | 65,707 | $ | 71,486 | $ | 53,055 | $ | 65,707 | $ | 53,055 | ||||||
Total Long-term Assets1,3 | ||||||||||||||||
Beginning assets | $ | 172,923 | $ | 124,430 | $ | 119,827 | $ | 132,356 | $ | 113,695 | ||||||
Sales4 | 10,160 | 9,797 | 18,404 | 35,854 | 39,778 | |||||||||||
Redemptions4 | (15,100 | ) | (10,591 | ) | (8,168 | ) | (48,130 | ) | (33,255 | ) | ||||||
Net (redemptions) sales 4 | (4,940 | ) | (794 | ) | 10,236 | (12,276 | ) | 6,523 | ||||||||
Net exchanges | 12 | (7 | ) | (16 | ) | (3 | ) | (105 | ) | |||||||
Acquisition-related | 0 | 45,986 | 0 | 45,986 | 435 | |||||||||||
Market gains and losses2 | (9,929 | ) | 3,308 | 2,309 | (7,997 | ) | 11,808 | |||||||||
Ending assets | $ | 158,066 | $ | 172,923 | $ | 132,356 | $ | 158,066 | $ | 132,356 |
1) | Includes $8.3 billion and $8.4 billion at Dec. 31, 2018 and Sept. 30, 2018, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 11 of 13 |
Unaudited Managed Assets (in millions) | Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | March 31, 2018 | Dec. 31, 2017 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 72,497 | $ | 84,143 | $ | 57,973 | $ | 58,830 | $ | 62,816 | |||||
Fixed-income | 63,158 | 65,369 | 61,435 | 62,205 | 64,160 | ||||||||||
Alternative / private markets1 | 18,318 | 18,621 | 292 | 343 | 366 | ||||||||||
Multi-asset | 4,093 | 4,790 | 4,730 | 4,843 | 5,014 | ||||||||||
Total long-term assets | 158,066 | 172,923 | 124,430 | 126,221 | 132,356 | ||||||||||
Money market | 301,794 | 264,233 | 255,247 | 265,944 | 265,214 | ||||||||||
Total Managed Assets | $ | 459,860 | $ | 437,156 | $ | 379,677 | $ | 392,165 | $ | 397,570 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 36,584 | $ | 43,578 | $ | 31,699 | $ | 31,507 | $ | 33,008 | |||||
Fixed-income | 40,490 | 41,817 | 39,877 | 40,529 | 41,144 | ||||||||||
Alternative / private markets1 | 11,365 | 11,457 | 292 | 343 | 366 | ||||||||||
Multi-asset | 3,920 | 4,585 | 4,521 | 4,620 | 4,783 | ||||||||||
Total long-term assets | 92,359 | 101,437 | 76,389 | 76,999 | 79,301 | ||||||||||
Money market | 208,480 | 182,966 | 172,671 | 182,437 | 185,536 | ||||||||||
Total Fund Assets | $ | 300,839 | $ | 284,403 | $ | 249,060 | $ | 259,436 | $ | 264,837 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 35,913 | $ | 40,565 | $ | 26,274 | $ | 27,323 | $ | 29,808 | |||||
Fixed-income | 22,668 | 23,552 | 21,558 | 21,676 | 23,016 | ||||||||||
Alternative / private markets | 6,953 | 7,164 | 0 | 0 | 0 | ||||||||||
Multi-asset | 173 | 205 | 209 | 223 | 231 | ||||||||||
Total long-term assets | 65,707 | 71,486 | 48,041 | 49,222 | 53,055 | ||||||||||
Money market | 93,314 | 81,267 | 82,576 | 83,507 | 79,678 | ||||||||||
Total Separate Account Assets | $ | 159,021 | $ | 152,753 | $ | 130,617 | $ | 132,729 | $ | 132,733 | |||||
Total Managed Assets | $ | 459,860 | $ | 437,156 | $ | 379,677 | $ | 392,165 | $ | 397,570 |
1) | Alternative/private markets at Dec. 31, 2018 and Sept. 30, 2018 includes $8.3 billion and $8.4 billion, respectively, of fund assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 12 of 13 |
Unaudited Average Managed Assets | Quarter Ended | ||||||||||||||
(in millions) | Dec. 31, 2018 | Sept. 30, 2018 | June 30, 2018 | March 31, 2018 | Dec. 31, 2017 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 78,084 | $ | 84,262 | $ | 58,818 | $ | 61,555 | $ | 62,140 | |||||
Fixed-income | 63,881 | 64,750 | 61,648 | 63,538 | 64,280 | ||||||||||
Alternative / private markets1 | 18,410 | 18,504 | 319 | 355 | 397 | ||||||||||
Multi-asset | 4,449 | 4,805 | 4,824 | 4,979 | 5,000 | ||||||||||
Total long-term assets | 164,824 | 172,321 | 125,609 | 130,427 | 131,817 | ||||||||||
Money market | 278,885 | 261,571 | 260,371 | 267,546 | 250,197 | ||||||||||
Total Avg. Managed Assets | $ | 443,709 | $ | 433,892 | $ | 385,980 | $ | 397,973 | $ | 382,014 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 39,871 | $ | 43,473 | $ | 31,911 | $ | 32,680 | $ | 32,829 | |||||
Fixed-income | 41,088 | 41,501 | 40,199 | 41,022 | 41,169 | ||||||||||
Alternative / private markets1 | 11,351 | 11,109 | 319 | 355 | 397 | ||||||||||
Multi-asset | 4,268 | 4,598 | 4,604 | 4,749 | 4,771 | ||||||||||
Total long-term assets | 96,578 | 100,681 | 77,033 | 78,806 | 79,166 | ||||||||||
Money market | 194,009 | 179,562 | 175,885 | 181,856 | 176,918 | ||||||||||
Total Avg. Fund Assets | $ | 290,587 | $ | 280,243 | $ | 252,918 | $ | 260,662 | $ | 256,084 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 38,213 | $ | 40,789 | $ | 26,907 | $ | 28,875 | $ | 29,311 | |||||
Fixed-income | 22,793 | 23,249 | 21,449 | 22,516 | 23,111 | ||||||||||
Alternative / private markets | 7,059 | 7,395 | 0 | 0 | 0 | ||||||||||
Multi-asset | 181 | 207 | 220 | 230 | 229 | ||||||||||
Total long-term assets | 68,246 | 71,640 | 48,576 | 51,621 | 52,651 | ||||||||||
Money market | 84,876 | 82,009 | 84,486 | 85,690 | 73,279 | ||||||||||
Total Avg. Separate Account Assets | $ | 153,122 | $ | 153,649 | $ | 133,062 | $ | 137,311 | $ | 125,930 | |||||
Total Avg. Managed Assets | $ | 443,709 | $ | 433,892 | $ | 385,980 | $ | 397,973 | $ | 382,014 |
1) | Alternative/private markets for the quarter ended Dec. 31, 2018 and Sept. 30, 2018 includes $8.3 billion and $8.2 billion, respectively, of fund assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
Federated Reports Q4 and Full-Year 2018 Earnings | Page 13 of 13 |
Unaudited Average Managed Assets | Year Ended | |||||||
(in millions) | Dec. 31, 2018 | Dec. 31, 2017 | ||||||
By Asset Class | ||||||||
Equity | $ | 70,680 | $ | 60,255 | ||||
Fixed-income | 63,454 | 55,204 | ||||||
Alternative / private markets1 | 9,397 | 441 | ||||||
Multi-asset | 4,764 | 5,062 | ||||||
Total long-term assets | 148,295 | 120,962 | ||||||
Money market | 267,093 | 245,459 | ||||||
Total Avg. Managed Assets | $ | 415,388 | $ | 366,421 | ||||
By Product Type | ||||||||
Funds: | ||||||||
Equity | $ | 36,984 | $ | 32,160 | ||||
Fixed-income | 40,952 | 40,676 | ||||||
Alternative / private markets1 | 5,784 | 441 | ||||||
Multi-asset | 4,554 | 4,841 | ||||||
Total long-term assets | 88,274 | 78,118 | ||||||
Money market | 182,828 | 176,580 | ||||||
Total Avg. Fund Assets | $ | 271,102 | $ | 254,698 | ||||
Separate Accounts: | ||||||||
Equity | $ | 33,696 | $ | 28,095 | ||||
Fixed-income | 22,502 | 14,528 | ||||||
Alternative / private markets | 3,613 | 0 | ||||||
Multi-asset | 210 | 221 | ||||||
Total long-term assets | 60,021 | 42,844 | ||||||
Money market | 84,265 | 68,879 | ||||||
Total Avg. Separate Account Assets | $ | 144,286 | $ | 111,723 | ||||
Total Avg. Managed Assets | $ | 415,388 | $ | 366,421 |
1) | Alternative/private markets for the year ended Dec. 31, 2018 includes $4.1 billion of fund assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment. |
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