- Equity and fixed-income assets increase $13.3 billion during 2009
to $63.5 billion - Bond funds net $6.8 billion in flows during 2009
PITTSBURGH, Jan. 28 /PRNewswire-FirstCall/ -- Federated Investors,
Inc. (NYSE:FII), one of the nation's largest investment managers,
today reported earnings per diluted share (EPS) of $0.51 for the
quarter ended Dec. 31, 2009 compared to $0.53 for the same quarter
last year. Net income was $51.9 million for Q4 2009 compared to
$54.3 million for Q4 2008. For the year ended Dec. 31, 2009,
Federated reported EPS from continuing operations of $1.92 compared
to $2.15 for 2008, a decrease of 11 percent. For 2009, income from
continuing operations was $197.3 million compared to $221.5 million
for the same period in 2008. Earnings for 2009 included $21.3
million in non-cash impairment charges recognized primarily in Q1
2009. Federated's total managed assets were $389.3 billion at Dec.
31, 2009, down $18.0 billion or 4 percent from $407.3 billion at
Dec. 31, 2008 and down $3.0 billion or 1 percent from $392.3
billion reported at Sept. 30, 2009. Average managed assets for Q4
2009 were $388.1 billion, up $18.3 billion or 5 percent from $369.8
billion reported for Q4 2008 and down $20.0 billion or 5 percent
from $408.1 billion reported for Q3 2009. "With better market
conditions in 2009, Federated experienced strong demand for
fixed-income and equity products," said J. Christopher Donahue,
president and chief executive officer. "Gross sales of fixed-income
and equity funds increased 64 percent from 2008. In particular,
fixed-income fund sales were strong as investors valued our
consistent fund performance over a multi-year period." Federated's
board of directors declared a dividend of $1.50 per share. The
dividend, which will be paid in cash, is considered an ordinary
dividend for tax purposes and consists of a $0.24 quarterly
dividend and a $1.26 special dividend. The dividend is payable on
Feb. 12, 2010 to shareholders of record as of Feb. 5, 2010. "The
February 2010 special dividend rewards shareholders for the success
that Federated achieved in 2009," said Thomas R. Donahue, chief
financial officer. "Through our diversified business mix and the
efforts of our outstanding employees, Federated has successfully
navigated through the challenges of the last several quarters and
remains well positioned for new growth opportunities." In addition,
during Q4 2009, Federated purchased 50,000 shares of Federated
class B common stock for $1.3 million. In 2009, the company
purchased 828,918 shares of Federated class B common stock for
$20.1 million. Federated's fixed-income assets were $33.8 billion
at Dec. 31, 2009, up $10.3 billion or 44 percent from $23.5 billion
at Dec. 31, 2008 and up $1.8 billion or 6 percent from $32.0
billion at Sept. 30, 2009. Federated experienced continued strong
net positive flows into its bond funds with $1.3 billion during Q4
2009, bringing total net bond fund inflows to $6.8 billion for
2009, an increase of $5.4 billion over 2008. Net sales were driven
by strong flows into ultrashort bond funds and intermediate-term
bond funds including Federated Total Return Bond Fund. Federated's
equity assets were $29.7 billion at Dec. 31, 2009, up $3.0 billion
or 11 percent from $26.7 billion at Dec. 31, 2008 and up $0.6
billion or 2 percent from $29.1 billion at Sept. 30, 2009. During
Q4 2009, Federated's net flows into equity funds were $67 million.
Equity fund net outflows improved to $47 million for 2009 compared
to net outflows of $2.2 billion in 2008. Net sales were led by
Federated Prudent Bear Fund, Federated Strategic Value Fund and
Federated Market Opportunity Fund. Money market assets in both
funds and separate accounts were $313.3 billion at Dec. 31, 2009,
down $42.4 billion or 12 percent from $355.7 billion at Dec. 31,
2008 and down $4.8 billion or 2 percent from $318.1 billion at
Sept. 30, 2009. Money market mutual fund assets were $281.6 billion
at Dec. 31, 2009, down $45.7 billion or 14 percent from $327.3
billion at Dec. 31, 2008 and down $6.0 billion or 2 percent from
$287.6 billion at Sept. 30, 2009. Financial Summary Q4 2009 vs. Q4
2008 For Q4 2009, revenue decreased by $37.0 million or 12 percent
from the same quarter last year. The decrease in revenue primarily
reflects a $54.1 million increase in voluntary fee waivers related
to certain money market funds in order to maintain positive or zero
net yields. This increase in fee waivers was largely offset by a
related decrease in marketing and distribution expenses of $40.7
million such that the net impact on operating income was a decrease
of $13.4 million. In addition, revenue decreased due to lower
average money market managed assets. These decreases were partially
offset by the impact of increased average fixed-income and equity
managed assets. Fee waivers to produce positive or zero net yields
may increase and such increases could be significant. The amount of
these waivers will be determined by a variety of factors including
available yields on instruments held by the money market funds,
changes in assets within money market funds, actions by the Federal
Reserve and the U.S. Department of the Treasury, changes in the mix
of money market customer assets, changes in expenses of the money
market funds and Federated's willingness to continue these waivers.
In Q4 2009, Federated derived 56 percent of its revenue from money
market assets, 43 percent from fluctuating assets (28 percent from
equity assets and 15 percent from fixed-income assets) and 1
percent from other products and services. Operating expenses for Q4
2009 were $178.4 million compared to $216.0 million for Q4 2008.
This change was primarily a result of lower marketing and
distribution expenses due to the aforementioned fee-waiver-related
reductions. Q4 2009 vs. Q3 2009 Compared to the prior quarter,
revenue decreased by $28.8 million or 10 percent. The decrease in
revenue primarily reflects a $21.0 million increase in voluntary
fee waivers on certain money market funds in order to maintain
positive or zero net yields. This increase in fee waivers was
largely offset by a related decrease in marketing and distribution
expenses of $14.7 million such that the net impact on operating
income was a decrease of $6.3 million compared to the prior
quarter. In addition, revenue decreased due to lower average money
market managed assets. These decreases were partially offset by the
impact of increased average equity and fixed-income managed assets.
Compared to Q3 2009, operating expenses decreased by $20.4 million
or 10 percent. Changes from the prior period include a decrease in
marketing and distribution expenses primarily related to the
aforementioned fee-waiver-related reductions. 2009 vs. 2008 Revenue
for 2009 decreased by $47.7 million or 4 percent compared to last
year. The decrease in revenue primarily reflects a $117.0 million
increase in voluntary fee waivers on certain money market funds in
order to maintain positive or zero net yields. This increase in fee
waivers was largely offset by a related decrease in marketing and
distribution expenses of $84.5 million such that the net impact on
operating income was a decrease of $32.5 million. In addition,
revenue decreased due to lower average equity managed assets. These
decreases were partially offset by the impact of increased average
money market and fixed-income managed assets. In 2009, Federated
derived 65 percent of its revenue from money market assets, 35
percent from fluctuating assets (23 percent from equity assets and
12 percent from fixed-income assets). Operating expenses for 2009
decreased by $15.8 million or 2 percent compared to last year.
Changes from the prior year include a decrease in marketing and
distribution expenses primarily related to the aforementioned
fee-waivers offset by the impact of average asset changes, higher
acquisition-related compensation expense and non-cash impairment
charges to write down certain intangible assets in Q1 2009.
Compared to 2008, professional service fees, travel and related and
advertising and promotional expenses all decreased during 2009 due,
in part, to companywide cost-saving initiatives. 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. Federated will host an
earnings conference call at 9 a.m. Eastern on Friday, Jan. 29,
2010. 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 Us section
of FederatedInvestors.com. A replay will be available after 12:30
p.m. and until Feb. 6, 2010 by calling 877-660-6853 (domestic) or
201-612-7415 (international) and entering codes 286 and 340551.
Federated Investors, Inc. is one of the largest investment managers
in the United States, managing $389.3 billion in assets as of Dec.
31, 2009. With 145 funds and a variety of separately managed
account options, Federated provides comprehensive investment
management to more than 5,200 institutions and intermediaries
including corporations, government entities, insurance companies,
foundations and endowments, banks and broker/dealers. Federated
ranks in the top 2 percent of money market fund managers in the
industry, the top 6 percent of fixed-income fund managers and the
top 8 percent of equity fund managers(1). For more information,
visit FederatedInvestors.com. (1) Strategic Insight, Nov. 30, 2009.
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 advisor. Certain
statements in this press release, such as those related to the
level of fee waivers incurred by the company, 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.
Unaudited Condensed Consolidated Statements of Income(1) (in
thousands, except per share data) % % Quarter Ended Change Change
Dec. 31, Q4 Quarter Q3 ---------------- 2008 Ended 2009 2009 2008
to Q4 Sept. 30, to Q4 ---- ---- 2009 2009 2009 Revenue Investment
advisory fees, net $175,586 $187,684 (6)% $190,012 (8)%
Administrative service fees, net 61,884 60,907 2 65,267 (5) Other
service fees, net 26,124 50,889 (49) 36,957 (29) Other, net 1,216
2,288 (47) 1,367 (11) ---------- ----- ----- --- ----- --- Total
Revenue 264,810 301,768 (12) 293,603 (10) ------------- -------
------- --- ------- --- Operating Expenses Compensation and related
62,359 56,219 11 62,232 0 General and administrative Marketing and
distribution 76,403 115,518 (34) 95,452 (20) Professional service
fees 8,260 9,945 (17) 10,089 (18) Office and occupancy 6,194 6,276
(1) 6,001 3 Systems and communications 5,914 5,721 3 6,517 (9)
Travel and related 3,743 3,883 (4) 2,316 62 Advertising and
promotional 2,847 3,323 (14) 2,529 13 Other 5,274 4,958 6 4,677 13
----- ----- ----- --- ----- --- Total general and administrative
108,635 149,624 (27) 127,581 (15) Amortization of deferred sales
commissions 3,526 5,453 (35) 5,104 (31) Intangible asset
amortization 3,909 4,715 (17) 3,953 (1) ------------ ----- -----
--- ----- --- Total Operating Expenses 178,429 216,011 (17) 198,870
(10) -------- ------- ------- --- ------- --- Operating Income
86,381 85,757 1 94,733 (9) ---------------- ------ ------ ---
------ --- Nonoperating Income (Expenses) Investment income, net
814 (1,115) 173 1,685 (52) Debt expense - recourse (975) (1,464)
(33) (1,112) (12) Debt expense - nonrecourse (253) (518) (51) (314)
(19) Other, net 41 (100) 141 (101) 141 ---------- --- ---- --- ----
--- Total Nonoperating (Expenses) Income, net (373) (3,197) (88)
158 (336) --- ---- ------ --- --- ---- Income before income taxes
86,008 82,560 4 94,891 (9) Income tax provision 31,308 27,041 16
34,604 (10) -------------------- ------ ------ --- ------ --- Net
income including noncontrolling interests in subsidiaries 54,700
55,519 (1) 60,287 (9) Less: Net income attributable to
noncontrolling interests in subsidiaries 2,803 1,256 123 3,301 (15)
------------ ----- ----- --- ----- --- Net Income $51,897 $54,263
(4)% $56,986 (9)% ---------- ------- ------- --- ------- ---
Amounts Attributable to Federated Earnings Per Share(2) Basic $0.51
$0.53 (4)% $0.56 (9)% Diluted $0.51 $0.53 (4)% $0.56 (9)% -------
----- ----- --- ----- --- Weighted-average shares outstanding Basic
99,763 99,891 99,958 Diluted 99,938 100,025 100,086 ------- ------
------- ------- Dividends declared per share $0.24 $0.24 $0.24
----- ----- ----- ----- (1) Provisions of a new accounting standard
adopted on Jan. 1, 2009 require that minority interest be renamed
noncontrolling interest and that companies present a consolidated
net income that includes the amount attributable to noncontrolling
interests for all periods presented. (2) Under a new accounting
standard adopted on Jan. 1, 2009, unvested share-based payment
awards that receive non-forfeitable dividend rights are considered
participating securities and are now required to be in the
computation of earnings per share under the "two-class method." As
a result, current and prior periods have been adjusted to reflect
this new standard. Total income available to participating
restricted shareholders was $1.4 million, $0.9 million and $1.4
million for the quarterly periods ended Dec. 31, 2009, Dec. 31,
2008 and Sept. 30, 2009, respectively. Unaudited Condensed
Consolidated Statements of Income(1) (in thousands, except per
share data) Year Ended Dec. 31, ------------------- % Change 2009
2008 ---- ---- Revenue Investment advisory fees, net $749,823
$775,381 (3)% Administrative service fees, net 261,610 218,735 20
Other service fees, net 158,999 221,327 (28) Other, net 5,518 8,237
(33) ---------- ----- ----- --- Total Revenue 1,175,950 1,223,680
(4) ------------- --------- --------- --- Operating Expenses
Compensation and related 254,428 237,186 7 General and
administrative Marketing and distribution 408,300 440,317 (7)
Professional service fees 38,133 40,301 (5) Systems and
communications 25,189 23,648 7 Office and occupancy 24,509 24,342 1
Travel and related 11,374 14,048 (19) Advertising and promotional
11,085 14,819 (25) Other 22,669 18,080 25 ----- ------ ------ ---
Total general and administrative 541,259 575,555 (6) Amortization
of deferred sales commissions 18,462 31,376 (41) Intangible asset
impairment and amortization 32,574 18,388 77 ----------------
------ ------ --- Total Operating Expenses 846,723 862,505 (2)
--------------- ------- ------- --- Operating Income 329,227
361,175 (9) ---------------- ------- ------- --- Nonoperating
Income (Expenses) Investment income, net 3,308 1,250 165 Debt
expense - recourse (4,345) (2,425) 79 Debt expense - nonrecourse
(1,366) (2,750) (50) Other, net (6) (457) (99) ---------- --- ----
--- Total Nonoperating Expenses, net (2,409) (4,382) (45)
------------- ------ ------ --- Income from continuing operations
before income taxes 326,818 356,793 (8) Income tax provision
118,278 128,168 (8) -------------------- ------- ------- --- Income
from continuing operations including noncontrolling interests in
subsidiaries 208,540 228,625 (9) Discontinued operations, net of
tax - 2,808 (100) ---------- --- ----- ---- Net income including
noncontrolling interests in subsidiaries 208,540 231,433 (10) Less:
Net income attributable to the noncontrolling interest in
subsidiaries 11,248 7,116 58 ------------ ------ ----- --- Net
Income $197,292 $224,317 (12)% ---------- -------- -------- ---
Amounts Attributable to Federated Income from continuing operations
$197,292 $221,509 (11)% Discontinued operations, net of tax - 2,808
(100) --- --- ----- ---- Net Income $197,292 $224,317 (12)%
---------- -------- -------- --- Earnings Per Share-Basic(2) Income
from continuing operations $1.93 $2.17 (11)% Income from
discontinued operations - 0.03 (100) ------------- --- ---- ----
Net Income $1.93 $2.20 (12)% ---------- ----- ----- --- Earnings
Per Share-Diluted(2) Income from continuing operations $1.92 $2.15
(11)% Income from discontinued operations - 0.03 (100)
------------- --- ---- ---- Net Income $1.92 $2.18 (12)% ----------
----- ----- --- Weighted-average shares outstanding Basic 99,923
99,605 Diluted 100,056 100,395 ------- ------- ------- Dividends
declared per share $0.96 $3.69 ------------------ ----- ----- (1)
Provisions of a new accounting standard adopted on Jan. 1, 2009
require that minority interest be renamed noncontrolling interest
and that companies present a consolidated net income that includes
the amount attributable to noncontrolling interests for all periods
presented. (2) Under a new accounting standard adopted on Jan. 1,
2009, unvested share-based payment awards that receive
non-forfeitable dividend rights are considered participating
securities and are now required to be included in the computation
of earnings per share under the "two-class method." As a result
current and prior periods have been adjusted to reflect this new
standard. Total income available to participating restricted
shareholders was $4.9 million and $5.2 million for the years ended
Dec. 31, 2009 and Dec. 31, 2008, respectively. Unaudited Condensed
Consolidated Balance Sheets (in thousands) Dec. 31, Dec. 31, 2009
2008 ---- ---- Assets Cash and other short-term investments
$121,990 $58,647 Other current assets 62,797 58,185 Deferred sales
commissions, net 15,318 30,261 Intangible assets, net and goodwill
662,996 657,321 Other long-term assets 49,332 42,196
---------------------- -------- -------- Total Assets $912,433
$846,610 ------------ -------- -------- Liabilities and Equity
Current liabilities $196,998 $217,838 Long-term debt recourse
105,000 126,000 Long-term debt nonrecourse 13,556 30,497 Other
long-term liabilities 54,151 47,705 Equity excluding treasury
stock(1) 1,338,117 1,229,051 Treasury stock (795,389) (804,481)
-------------- -------- -------- Total Liabilities and Equity
$912,433 $846,610 ---------------------------- -------- --------
(1) Provisions of a new accounting standard adopted on Jan. 1, 2009
require that minority interest be renamed noncontrolling interest
and companies present it as a component of equity for all periods
presented. Noncontrolling interest was previously included in other
long-term liabilities, but is now included in Equity excluding
treasury stock. Changes in Equity and Fixed-Income Fund Managed
Assets (in millions) Quarter Ended Year Ended Dec. 31,
------------- ------------------- Dec. 31, Dec. 31, Sept. 30, 2009
2008 2009 2009 2008 ---- ---- ---- ---- ---- Equity Funds Beginning
assets $20,350 $21,583 $17,966 $17,562 $29,145 --------- -------
------- ------- ------- ------- Sales 1,555 1,031 1,503 5,560 5,040
Redemptions (1,488) (1,752) (1,377) (5,607) (7,205) -----------
------ ------ ------ ------ ------ Net sales (redemptions) 67 (721)
126 (47) (2,165) Net exchanges (11) (103) (12) (90) (266)
Acquisition related 0 1,149 257 257 1,191 Market gains and losses/
reinvestments(1) 554 (4,346) 2,013 3,278 (10,343) ---------------
--- ------ ----- ----- ------- Ending assets $20,960 $17,562
$20,350 $20,960 $17,562 ------------- ------- ------- -------
------- ------- Fixed-Income Funds Beginning assets $26,960 $19,136
$24,100 $19,321 $17,943 --------- ------- ------- ------- -------
------- Sales 4,355 2,172 4,789 16,892 8,681 Redemptions (3,095)
(2,331) (2,971) (10,073) (7,242) ----------- ------ ------ ------
------- ------ Net sales (redemptions) 1,260 (159) 1,818 6,819
1,439 Net exchanges 27 13 53 128 92 Acquisition related 0 658 0 0
658 Market gains and losses/ reinvestments(1) 180 (327) 989 2,159
(811) --------------- --- ---- --- ----- ---- Ending assets $28,427
$19,321 $26,960 $28,427 $19,321 ------------- ------- -------
------- ------- ------- (1) Reflects the approximate changes in the
market value of the securities held by the funds and, to a lesser
extent, reinvested dividends, distributions, net investment income
and the impact of changes in foreign exchange rates. Changes in
Equity and Fixed-Income Separate Account Assets(2) (in millions)
Quarter Ended Year Ended Dec. 31, Dec. 31, Dec. 31, Sept. 30, 2009
2008 2009 2009 2008 ---- ---- ---- ---- ---- Equity Separate
Accounts Beginning assets $8,774 $10,068 $8,245 $9,099 $13,017
---------------- ------ ------- ------ ------ ------- Net customer
flows(3) (403) (754) (261) (1,429) (1,375) Acquisition related(4) 0
1,537 (257) (257) 1,537 Market gains and losses/ reinvestments(5)
342 (1,752) 1,047 1,300 (4,080) --------------- --- ------ -----
----- ------ Ending assets $8,713 $9,099 $8,774 $8,713 $9,099
------------- ------ ------ ------ ------ ------ Fixed-Income
Separate Accounts Beginning assets $5,079 $3,602 $4,583 $4,165
$3,754 ---------------- ------ ------ ------ ------ ------ Net
customer flows(3) 241 180 188 510 86 Acquisition related 0 444 0 0
444 Market gains and losses/ reinvestments(5) 40 (61) 308 685 (119)
--------------- --- --- --- --- ---- Ending assets $5,360 $4,165
$5,079 $5,360 $4,165 ------------- ------ ------ ------ ------
------ (2) Includes separately managed accounts, institutional
accounts and sub- advised funds (both variable annuity and other)
and other managed products. Flows for liquidation portfolios have
been removed from Changes in Equity and Fixed-Income Separate
Account Assets and are detailed on the following page. (3) For
certain accounts, Net customer flows are calculated as the
remaining difference between beginning and ending assets after the
calculation of Market gains and losses/reinvestments. (4) Includes
assets that were reclassified from Equity Separate Accounts to
Equity Funds as a result of the transaction with the Touchstone
Funds, which was completed during Q3 2009. See related press
release dated Aug. 31, 2009 for more information about the
Touchstone transaction. (5) Reflects the approximate changes in the
market value of the securities held in the portfolios, and, to a
lesser extent, reinvested dividends, distributions, net investment
income and the impact of changes in foreign exchange rates. Changes
in Liquidation Portfolios(1) (in millions) Quarter Ended Year Ended
Dec. 31, ------------- ------------------- Dec. 31, Dec. 31, Sept.
30, 2009 2008 2009 2009 2008 Liquidation Portfolios Beginning
assets $13,073 $1,777 $556 $1,505 $1,127 ------ ------- ------ ----
------ ------ Net customer flows(2) (478) (205) 12,516 11,085 652
Market gains and losses/ reinvestments(3) 1 (67) 1 6 (274)
--------------- --- --- --- --- ---- Ending assets $12,596 $1,505
$13,073 $12,596 $1,505 ------------- ------- ------ ------- -------
------ (1) Liquidation portfolios include portfolios of distressed
fixed-income securities and liquidating collateralized debt
obligation (CDO) products. In the distressed security category,
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. In the case of liquidating CDOs, the CDO
structure has unwound earlier than expected due to events of
default related to certain distressed securities in the portfolio.
Management fee rates earned from these portfolios are significantly
different than those of traditional separate account mandates. (2)
For certain accounts, Net customer flows 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
in the portfolios, and, to a lesser extent, reinvested dividends,
distributions, net investment income and the impact of changes in
foreign exchange rates. (in millions) Dec. 31, Sept. 30, June 30,
March 31, Dec. 31, MANAGED ASSETS 2009 2009 2009 2008 2009
-------------- ---- ---- ---- ---- ---- By Asset Class
-------------- Equity $29,673 $29,124 $26,211 $23,411 $26,661
Fixed-income 33,787 32,039 28,683 24,971 23,486 Money market
313,260 318,064 346,354 360,127 355,658 Liquidation portfolios(1)
12,596 13,073 556 700 1,505 --------------- ------ ------ --- ---
----- Total Managed Assets $389,316 $392,300 $401,804 $409,209
$407,310 ------------- -------- -------- -------- -------- --------
By Product Type --------------- Mutual Funds: Equity $20,960
$20,350 $17,966 $15,902 $17,562 Fixed-income 28,427 26,960 24,100
20,752 19,321 Money market 281,569 287,634 312,808 328,780 327,267
------------ ------- ------- ------- ------- ------- Total Fund
Assets $330,956 $334,944 $354,874 $365,434 $364,150 ----------
-------- -------- -------- -------- -------- Separate Accounts:
Equity $8,713 $8,774 $8,245 $7,509 $9,099 Fixed-income 5,360 5,079
4,583 4,219 4,165 Money market 31,691 30,430 33,546 31,347 28,391
------------ ------ ------ ------ ------ ------ Total Separate
Accounts $45,764 $44,283 $46,374 $43,075 $41,655 --------------
------- ------- ------- ------- ------- Total Liquidation
Portfolios(1) $12,596 $13,073 $556 $700 $1,505 --------------
------- ------- ---- ---- ------ Total Managed Assets $389,316
$392,300 $401,804 $409,209 $407,310 ------------- -------- --------
-------- -------- -------- AVERAGE MANAGED ASSETS Quarter Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2009 2009 2009 2009
2008 -------------- ---- ---- ---- ---- ---- By Asset Class
-------------- Equity $29,343 $27,872 $25,287 $24,219 $24,870
Fixed-income 33,164 30,376 26,978 24,218 22,546 Money market
312,761 336,530 361,502 362,269 320,684 Liquidation portfolios(1)
12,881 13,370 637 975 1,650 --------------- ------ ------ --- ---
----- Total Avg. Assets $388,149 $408,148 $414,404 $411,681
$369,750 ---------- -------- -------- -------- -------- -------- By
Product Type --------------- Mutual Funds: Equity $20,625 $19,215
$17,220 $16,240 $16,904 Fixed-income 27,903 25,499 22,545 20,009
18,674 Money market 283,353 304,959 326,280 330,294 293,428
------------ ------- ------- ------- ------- ------- Total Avg.
Fund Assets $331,881 $349,673 $366,045 $366,543 $329,006
--------------- -------- -------- -------- -------- --------
Separate Accounts: Equity $8,718 $8,657 $8,067 $7,979 $7,966
Fixed-income 5,261 4,877 4,433 4,209 3,872 Money market 29,408
31,571 35,222 31,975 27,256 ------------ ------ ------ ------
------ ------ Total Avg. Separate Accts. $43,387 $45,105 $47,722
$44,163 $39,094 ---------- ------- ------- ------- ------- -------
Total Avg. Liquidation Portfolios(1) $12,881 $13,370 $637 $975
$1,650 -------------- ------- ------- ---- ---- ------ Total Avg.
Managed Assets $388,149 $408,148 $414,404 $411,681 $369,750
--------------- -------- -------- -------- -------- -------- (1)
Liquidation portfolios include portfolios of distressed
fixed-income securities and liquidating collateralized debt
obligation (CDO) products. In the distressed security category,
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. In the case of liquidating CDOs, the CDO
structure has unwound earlier than expected due to events of
default related to certain distressed securities in the portfolio.
Management fee rates earned from these portfolios are significantly
different than those of traditional separate account mandates.
DATASOURCE: Federated Investors, Inc. CONTACT: MEDIA: Meghan
McAndrew, +1-412-288-8103, or J.T. Tuskan, +1-412-288-7895; or
ANALYSTS: Ray Hanley, +1-412-288-1920, all of Federated Investors,
Inc. Web Site: http://federatedinvestors.com/
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