Concentration Risk

12 Months Ended

Dec. 31, 2019

The following information summarizes Federated's revenue concentrations. See additional information on the risks related to such concentrations in Item 1A - Risk Factors.

(a) Revenue Concentration by Asset Class

The following table presents Federated's revenue concentration by asset class over the last three years:



	2019		2018		2017
Equity Assets	40	%	41	%	38	%
Money Market Assets	40	%	37	%	41	%
Fixed-Income Assets	14	%	16	%	17	%

The change in the relative proportion of Federated's revenue attributable to money market assets in 2019, as compared to the same period in 2018, was primarily the result of higher average money market assets in 2019.

The change in the relative proportion of Federated's revenue attributable to equity assets in 2018, as compared to the same period in 2017, was primarily the result of higher average equity assets mostly as a result of the Hermes Acquisition. Because the Hermes Acquisition was primarily comprised of equity assets and alternative/private markets assets, the relative proportion of Federated's revenue attributable to money market assets decreased in 2018 as compared to 2017. Furthermore, Federated's revenue attributable to money market assets decreased as a result of a change in the mix of average money market assets.

(b) Revenue Concentration by Investment Strategy/Fund

The following table presents Federated's revenue concentration by investment strategy/fund over the last three years:



	2019		2018		2017
Federated Strategic Value Dividend strategy¹	11	%	15	%	18	%
Federated Government Obligations Fund	10	%	9	%	10	%
Federated Kaufmann Mid-Cap Growth strategy²	9	%	10	%	9	%


1	Strategy includes Federated Funds and Separate Accounts.


2	Strategy includes Federated Funds.

A significant and prolonged decline in the AUM in these strategies/fund could have a material adverse effect on Federated's future revenues and, to a lesser extent, net income, due to a related reduction in distribution expenses associated with the Federated Funds managed in accordance with these strategies.

Approximately 11%, 13% and 16% of Federated's total revenue for 2019, 2018 and 2017, respectively, was derived from services provided to one intermediary, The Bank of New York Mellon Corporation, including its Pershing subsidiary. Significant negative changes in Federated's relationship with this intermediary could have a material adverse effect on Federated's future revenues and, to a lesser extent, net income, due to a related reduction in distribution expenses associated with this intermediary.