PITTSBURGH, Jan. 25, 2018 /PRNewswire/ — Federated Investors, Inc. (NYSE: FII), one of the nation’s largest investment managers, today reported earnings per diluted share (EPS) of $1.31 and net income of $131.8 million for Q4 2017. Full-year 2017 EPS was $2.87 and net income was $291.3 million. Federated’s Q4 2017 and full-year 2017 results included $70.4 million of net income, representing $0.70 and $0.69 per share for Q4 2017 and full-year 2017, respectively, resulting from the enactment of the Tax Cuts and Jobs Act of 2017 (Tax Act).
Management believes adjusted EPS and adjusted net income, which are non-GAAP financial measures, are useful measures for investors to evaluate Federated’s financial performance. The adjusted measures reflect what earnings would have been had the tax law changes not reduced the federal corporate income tax rate from 35 percent to 21 percent, resulting in a revaluation of Federated’s net deferred tax liability. As such, Federated’s Q4 2017 adjusted EPS was $0.61, up 17 percent from EPS of $0.52 for Q4 2016, and adjusted net income was $61.4 million, compared to net income of $55.8 million for Q4 2016. Full-year 2017 adjusted EPS was $2.18, up 7 percent from EPS of $2.03 for 2016, and adjusted net income was $220.9 million, compared to net income of $208.9 million for 20161.
Federated’s total managed assets were $397.6 billion at Dec. 31, 2017, up $31.7 billion or 9 percent from $365.9 billion at Dec. 31, 2016 and up $33.9 billion or 9 percent from $363.7 billion at Sept. 30, 2017. Average managed assets for Q4 2017 were $382.0 billion, up $23.7 billion or 7 percent from $358.3 billion reported for Q4 2016 and up $21.5 billion or 6 percent from $360.5 billion reported for Q3 2017.
“In the fourth quarter, investors showed interest in our MDT and Kaufmann small-cap equity strategies,” said J. Christopher Donahue, president and chief executive officer. “Also, continued investor demand for a range of quality fixed-income products helped fourth-quarter flows into high-yield and multisector bond funds.”
Federated’s board of directors declared a quarterly dividend of $0.25 per share. The dividend is payable on Feb. 15, 2018 to shareholders of record as of Feb. 8, 2018. During Q4 2017, Federated purchased 197,237 shares of Federated class B common stock for $4.6 million, bringing the total shares of Class B common stock purchased in 2017 to 1,841,800 shares for $47.0 million.
Federated’s equity assets were a record $68.1 billion at Dec. 31, 2017, up $5.7 billion or 9 percent from $62.4 billion at Dec. 31, 2016 and up $1.0 billion or 1 percent from $67.1 billion at Sept. 30, 2017. Top-selling equity funds on a net basis during Q4 2017 were Federated MDT Small Cap Core Fund, Federated MDT Small Cap Growth Fund, Federated Kaufmann Small Cap Fund, Federated International Leaders Fund and Federated Muni and Stock Advantage Fund.
Federated’s fixed-income assets were a record $64.2 billion at Dec. 31, 2017, up $12.9 billion or 25 percent from $51.3 billion at Dec. 31, 2016 and up $11.4 billion or 22 percent from $52.8 billion at Sept. 30, 2017. Federated added $11.2 billion in fixed-income separate account assets in Q4 2017, which included a new advisory mandate from a large public institution. Top-selling fixed-income funds on a net basis during Q4 2017 included Federated Institutional High Yield Bond Fund, Federated Total Return Bond Fund, Federated Ultrashort Bond Fund, Federated Short-Intermediate Total Return Bond Fund and Federated Bond Fund.
Federated’s money market assets were $265.2 billion at Dec. 31, 2017, up $13.0 billion or 5 percent from $252.2 billion at Dec. 31, 2016 and up $21.4 billion or 9 percent from $243.8 billion at Sept. 30, 2017. Money market mutual fund assets were $185.5 billion at Dec. 31, 2017, down $20.9 billion or 10 percent from $206.4 billion at Dec. 31, 2016 and up $7.6 billion or 4 percent from $177.9 billion at Sept. 30, 2017. Since Dec. 31, 2016, approximately $21 billion in money market assets have transitioned from Federated funds to Federated separate accounts. Federated’s money market separate account assets were $79.7 billion at Dec. 31, 2017, up $33.9 billion or 74 percent from $45.8 billion at Dec. 31, 2016 and up $13.7 billion or 21 percent from $66.0 billion at Sept. 30, 2017.
Financial Summary
Q4 2017 vs. Q4 2016
Revenue decreased by $11.6 million or 4 percent primarily due to a change in a customer relationship and a change in the mix of average money market assets. The decrease in revenue was partially offset by a decrease in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers) and an increase in revenue from higher average equity and fixed-income assets.
During Q4 2017, Federated derived 60 percent of its revenue from equity and fixed-income assets (43 percent from equity assets and 17 percent from fixed-income assets) and 40 percent from money market assets.
Operating expenses decreased by $17.6 million or 9 percent primarily due to a decrease in distribution expenses related to a change in a customer relationship and lower average money market fund assets, partially offset by an increase in distribution expenses related to a decrease in voluntary yield-related fee waivers.
Q4 2017 vs. Q3 2017
Revenue was flat, while operating expenses decreased by $2.1 million or 1 percent primarily due to a decrease in distribution expenses related to a change in the mix of average money market fund assets partially offset by increased professional service fee expenses.
2017 vs. 2016
Revenue decreased by $40.4 million or 4 percent primarily due to a change in the mix of average money market assets and a decrease in revenue resulting from a change in a customer relationship. The decrease in revenue was partially offset by a decrease in voluntary yield-related fee waivers and an increase in revenue from higher average equity and fixed-income assets.
During 2017, Federated derived 59 percent of its revenue from equity and fixed-income assets (42 percent from equity assets and 17 percent from fixed-income assets) and 41 percent from money market assets.
Operating expenses decreased by $46.3 million or 6 percent primarily due to a decrease in distribution expenses related to lower average money market fund assets and a change in a customer relationship, partially offset by an increase in distribution expenses related to a decrease in voluntary yield-related fee waivers. The decrease in operating expenses is also attributable to a decrease in compensation and related expenses resulting from lower incentive compensation.
Nonoperating income, net increased by $5.2 million primarily due to an increase in net investment income principally resulting from related gains recorded on available-for-sale securities.
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, 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 Jan. 26, 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 in real time via the About Federated section of FederatedInvestors.com. A replay will be available from approximately 12:30 p.m. Eastern on Jan. 26, 2018 until Feb. 2, 2018 by calling 877-481-4010 (domestic) or 919-882-2331 (international) and entering access code 23407. 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 $397.6 billion in assets as of Dec. 31, 2017. 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 11 percent of fixed-income fund managers2. Federated also ranks as the fifth-largest SMA manager3. For more information, visit FederatedInvestors.com.
###
1) Reconciliation of Non-GAAP Financial Measures (Adjusted EPS and Adjusted Net Income): For Q4 2017, GAAP EPS of $1.31, less $0.70 resulting from the revaluation of Federated’s net deferred tax liability, results in an adjusted EPS of $0.61 and GAAP net income of $131.8 million, less $70.4 million resulting from the revaluation of Federated’s deferred tax liability, results in an adjusted net income of $61.4 million. For full-year 2017, GAAP EPS of $2.87, less $0.69 resulting from the revaluation of Federated’s net deferred tax liability, results in an adjusted EPS of $2.18, and GAAP net income of $291.3 million, less $70.4 million resulting from the revaluation of Federated’s deferred tax liability, results in adjusted net income of $220.9 million.
2) Strategic Insight, Dec. 31, 2017. Based on assets under management in open-end funds.
3) Money Management Institute/Dover Financial Research, Q3 2017.
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, fee arrangements with customers 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.
|
Unaudited Condensed Consolidated Statements of Income |
|||||||||||||
|
(in thousands, except per share data) |
|||||||||||||
|
Quarter Ended |
% Change |
Quarter Ended |
% Change |
||||||||||
|
Dec. 31, 2017 |
Dec. 31, 2016 |
Sept. 30, 2017 |
|||||||||||
|
Revenue |
|||||||||||||
|
Investment advisory fees, net |
$ |
186,145 |
$ |
195,063 |
(5) |
% |
$ |
184,886 |
1 |
% |
|||
|
Administrative service fees, net—affiliates |
49,051 |
51,466 |
(5) |
47,461 |
3 |
||||||||
|
Other service fees, net |
43,116 |
43,375 |
(1) |
45,968 |
(6) |
||||||||
|
Total Revenue |
278,312 |
289,904 |
(4) |
278,315 |
0 |
||||||||
|
Operating Expenses |
|||||||||||||
|
Distribution |
80,408 |
101,785 |
(21) |
84,838 |
(5) |
||||||||
|
Compensation and related |
71,990 |
68,740 |
5 |
72,454 |
(1) |
||||||||
|
Professional service fees |
8,922 |
8,001 |
12 |
6,948 |
28 |
||||||||
|
Systems and communications |
7,713 |
7,876 |
(2) |
7,992 |
(3) |
||||||||
|
Office and occupancy |
7,453 |
7,156 |
4 |
7,293 |
2 |
||||||||
|
Travel and related |
3,496 |
3,501 |
0 |
3,258 |
7 |
||||||||
|
Advertising and promotional |
2,771 |
3,771 |
(27) |
2,345 |
18 |
||||||||
|
Other |
4,725 |
4,252 |
11 |
4,497 |
5 |
||||||||
|
Total Operating Expenses |
187,478 |
205,082 |
(9) |
189,625 |
(1) |
||||||||
|
Operating Income |
90,834 |
84,822 |
7 |
88,690 |
2 |
||||||||
|
Nonoperating Income (Expenses) |
|||||||||||||
|
Investment income, net |
3,601 |
1,706 |
111 |
3,556 |
1 |
||||||||
|
Debt expense |
(1,239) |
(1,055) |
17 |
(1,250) |
(1) |
||||||||
|
Other, net |
(9) |
48 |
NM |
1 |
NM |
||||||||
|
Total Nonoperating Income, net |
2,353 |
699 |
237 |
2,307 |
2 |
||||||||
|
Income before income taxes |
93,187 |
85,521 |
9 |
90,997 |
2 |
||||||||
|
Income tax (benefit) provision1 |
(38,787) |
28,292 |
(237) |
33,756 |
(215) |
||||||||
|
Net income including the noncontrolling interests in subsidiaries |
131,974 |
57,229 |
131 |
57,241 |
131 |
||||||||
|
Less: Net income attributable to the noncontrolling interests in subsidiaries |
164 |
1,387 |
NM |
802 |
NM |
||||||||
|
Net Income |
$ |
131,810 |
$ |
55,842 |
136 |
% |
$ |
56,439 |
134 |
% |
|||
|
Amounts Attributable to Federated Investors, Inc. |
|||||||||||||
|
Earnings Per Share2,3 |
|||||||||||||
|
Basic and diluted |
$ |
1.31 |
$ |
0.52 |
152 |
% |
$ |
0.56 |
134 |
% |
|||
|
Weighted-average shares outstanding |
|||||||||||||
|
Basic |
97,084 |
98,280 |
97,128 |
||||||||||
|
Diluted |
97,086 |
98,280 |
97,129 |
||||||||||
|
Dividends declared per share |
$ |
0.25 |
$ |
1.25 |
$ |
0.25 |
|||||||
|
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 $5.0 million, $4.5 million and $2.2 million available to unvested restricted shareholders for the quarterly periods ended Dec. 31, 2017, Dec. 31, 2016 and Sept. 30, 2017, respectively, was excluded from the computation of earnings per share. |
|
Unaudited Condensed Consolidated Statements of Income |
|||||||||||
|
(in thousands, except per share data) |
|||||||||||
|
Year Ended |
|||||||||||
|
Dec. 31, 2017 |
Dec. 31, 2016 |
% Change |
|||||||||
|
Revenue |
|||||||||||
|
Investment advisory fees, net |
$ |
731,670 |
$ |
766,825 |
(5) |
% |
|||||
|
Administrative service fees, net—affiliates |
188,814 |
211,646 |
(11) |
||||||||
|
Other service fees, net |
182,440 |
164,900 |
11 |
||||||||
|
Total Revenue |
1,102,924 |
1,143,371 |
(4) |
||||||||
|
Operating Expenses |
|||||||||||
|
Distribution |
342,779 |
383,648 |
(11) |
||||||||
|
Compensation and related |
289,215 |
296,466 |
(2) |
||||||||
|
Systems and communications |
31,971 |
31,271 |
2 |
||||||||
|
Office and occupancy |
29,258 |
27,379 |
7 |
||||||||
|
Professional service fees |
29,064 |
29,443 |
(1) |
||||||||
|
Travel and related |
12,646 |
13,228 |
(4) |
||||||||
|
Advertising and promotional |
11,166 |
14,522 |
(23) |
||||||||
|
Other |
15,317 |
11,731 |
31 |
||||||||
|
Total Operating Expenses |
761,416 |
807,688 |
(6) |
||||||||
|
Operating Income |
341,508 |
335,683 |
2 |
||||||||
|
Nonoperating Income (Expenses) |
|||||||||||
|
Investment income, net |
15,308 |
9,364 |
63 |
||||||||
|
Debt expense |
(4,772) |
(4,173) |
14 |
||||||||
|
Other, net |
(42) |
60 |
NM |
||||||||
|
Total Nonoperating Income, net |
10,494 |
5,251 |
100 |
||||||||
|
Income before income taxes |
352,002 |
340,934 |
3 |
||||||||
|
Income tax provision1 |
57,101 |
119,420 |
(52) |
||||||||
|
Net income including the noncontrolling interests in subsidiaries |
294,901 |
221,514 |
33 |
||||||||
|
Less: Net income attributable to the noncontrolling interests in subsidiaries |
3,560 |
12,595 |
NM |
||||||||
|
Net Income |
$ |
291,341 |
$ |
208,919 |
39 |
% |
|||||
|
Amounts Attributable to Federated Investors, Inc. |
|||||||||||
|
Earnings Per Share2,3 |
|||||||||||
|
Basic and diluted |
$ |
2.87 |
$ |
2.03 |
41 |
% |
|||||
|
Weighted-average shares outstanding |
|||||||||||
|
Basic |
97,411 |
99,116 |
|||||||||
|
Diluted |
97,412 |
99,117 |
|||||||||
|
Dividends declared per share |
$ |
1.00 |
$ |
2.00 |
|||||||
|
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 $11.4 million and $7.6 million available to unvested restricted shareholders for the years ended Dec. 31, 2017 and Dec. 31, 2016, respectively, was excluded from the computation of earnings per share. |
|
Unaudited Condensed Consolidated Balance Sheets |
||||||
|
(in thousands) |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||
|
Assets |
||||||
|
Cash and other investments |
$ |
369,538 |
$ |
301,149 |
||
|
Other current assets |
67,736 |
58,611 |
||||
|
Intangible assets, net, including goodwill |
736,915 |
733,137 |
||||
|
Other long-term assets |
57,221 |
62,210 |
||||
|
Total Assets |
$ |
1,231,410 |
$ |
1,155,107 |
||
|
Liabilities, Redeemable Noncontrolling Interests and Equity |
||||||
|
Current liabilities |
$ |
128,849 |
$ |
162,538 |
||
|
Long-term debt |
170,000 |
165,750 |
||||
|
Other long-term liabilities |
141,183 |
199,673 |
||||
|
Redeemable noncontrolling interests |
30,163 |
31,362 |
||||
|
Equity excluding treasury stock |
1,039,947 |
851,166 |
||||
|
Treasury stock |
(278,732) |
(255,382) |
||||
|
Total Liabilities, Redeemable Noncontrolling Interests and Equity |
$ |
1,231,410 |
$ |
1,155,107 |
||
|
Unaudited Changes in Equity and Fixed-Income Fund and Separate Account Assets |
||||||||||||||||
|
(in millions) |
||||||||||||||||
|
Quarter Ended |
Year Ended |
|||||||||||||||
|
Dec. 31, 2017 |
Sept. 30, 2017 |
Dec. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||||||
|
Equity funds |
||||||||||||||||
|
Beginning assets |
$ |
37,741 |
$ |
37,225 |
$ |
37,777 |
$ |
36,231 |
$ |
34,125 |
||||||
|
Sales |
1,375 |
1,275 |
2,050 |
5,764 |
11,617 |
|||||||||||
|
Redemptions |
(2,090) |
(2,058) |
(3,462) |
(9,589) |
(11,159) |
|||||||||||
|
Net (redemptions) sales |
(715) |
(783) |
(1,412) |
(3,825) |
458 |
|||||||||||
|
Net exchanges |
34 |
(58) |
38 |
(38) |
(41) |
|||||||||||
|
Acquisition-related |
0 |
0 |
0 |
287 |
0 |
|||||||||||
|
Market gains and losses1 |
1,041 |
1,357 |
(172) |
5,446 |
1,689 |
|||||||||||
|
Ending assets |
$ |
38,101 |
$ |
37,741 |
$ |
36,231 |
$ |
38,101 |
$ |
36,231 |
||||||
|
Equity separate accounts2 |
||||||||||||||||
|
Beginning assets |
$ |
29,314 |
$ |
28,562 |
$ |
26,337 |
$ |
26,150 |
$ |
19,431 |
||||||
|
Sales3 |
1,257 |
1,426 |
2,299 |
6,447 |
10,773 |
|||||||||||
|
Redemptions3 |
(1,445) |
(1,343) |
(1,825) |
(6,617) |
(5,469) |
|||||||||||
|
Net (redemptions) sales3 |
(188) |
83 |
474 |
(170) |
5,304 |
|||||||||||
|
Net exchanges |
0 |
0 |
(1) |
0 |
0 |
|||||||||||
|
Market gains and losses1 |
912 |
669 |
(660) |
4,058 |
1,415 |
|||||||||||
|
Ending assets |
$ |
30,038 |
$ |
29,314 |
$ |
26,150 |
$ |
30,038 |
$ |
26,150 |
||||||
|
Total equity2 |
||||||||||||||||
|
Beginning assets |
$ |
67,055 |
$ |
65,787 |
$ |
64,114 |
$ |
62,381 |
$ |
53,556 |
||||||
|
Sales3 |
2,632 |
2,701 |
4,349 |
12,211 |
22,390 |
|||||||||||
|
Redemptions3 |
(3,535) |
(3,401) |
(5,287) |
(16,206) |
(16,628) |
|||||||||||
|
Net (redemptions) sales3 |
(903) |
(700) |
(938) |
(3,995) |
5,762 |
|||||||||||
|
Net exchanges |
34 |
(58) |
37 |
(38) |
(41) |
|||||||||||
|
Acquisition-related |
0 |
0 |
0 |
287 |
0 |
|||||||||||
|
Market gains and losses1 |
1,953 |
2,026 |
(832) |
9,504 |
3,104 |
|||||||||||
|
Ending assets |
$ |
68,139 |
$ |
67,055 |
$ |
62,381 |
$ |
68,139 |
$ |
62,381 |
||||||
|
Fixed-income funds |
||||||||||||||||
|
Beginning assets |
$ |
41,214 |
$ |
40,880 |
$ |
39,796 |
$ |
39,434 |
$ |
37,989 |
||||||
|
Sales |
3,675 |
3,424 |
4,182 |
14,814 |
14,624 |
|||||||||||
|
Redemptions |
(3,740) |
(3,508) |
(3,988) |
(14,670) |
(14,403) |
|||||||||||
|
Net (redemptions) sales |
(65) |
(84) |
194 |
144 |
221 |
|||||||||||
|
Net exchanges |
(50) |
53 |
(57) |
(11) |
(69) |
|||||||||||
|
Acquisition-related |
0 |
0 |
0 |
148 |
0 |
|||||||||||
|
Market gains and losses1 |
101 |
365 |
(499) |
1,485 |
1,293 |
|||||||||||
|
Ending assets |
$ |
41,200 |
$ |
41,214 |
$ |
39,434 |
$ |
41,200 |
$ |
39,434 |
||||||
|
Fixed-income separate accounts2 |
||||||||||||||||
|
Beginning assets |
$ |
11,558 |
$ |
11,627 |
$ |
12,048 |
$ |
11,880 |
$ |
13,130 |
||||||
|
Sales3 |
12,096 |
163 |
460 |
12,750 |
1,164 |
|||||||||||
|
Redemptions3 |
(892) |
(389) |
(380) |
(2,377) |
(3,097) |
|||||||||||
|
Net sales (redemptions)3 |
11,204 |
(226) |
80 |
10,373 |
(1,933) |
|||||||||||
|
Net exchanges |
0 |
0 |
1 |
(56) |
1 |
|||||||||||
|
Market gains and losses1 |
255 |
157 |
(249) |
820 |
682 |
|||||||||||
|
Ending assets |
$ |
23,017 |
$ |
11,558 |
$ |
11,880 |
$ |
23,017 |
$ |
11,880 |
||||||
|
Total fixed income2 |
||||||||||||||||
|
Beginning assets |
$ |
52,772 |
$ |
52,507 |
$ |
51,844 |
$ |
51,314 |
$ |
51,119 |
||||||
|
Sales3 |
15,771 |
3,587 |
4,642 |
27,564 |
15,788 |
|||||||||||
|
Redemptions3 |
(4,632) |
(3,897) |
(4,368) |
(17,047) |
(17,500) |
|||||||||||
|
Net sales (redemptions)3 |
11,139 |
(310) |
274 |
10,517 |
(1,712) |
|||||||||||
|
Net exchanges |
(50) |
53 |
(56) |
(67) |
(68) |
|||||||||||
|
Acquisition-related |
0 |
0 |
0 |
148 |
0 |
|||||||||||
|
Market gains and losses1 |
356 |
522 |
(748) |
2,305 |
1,975 |
|||||||||||
|
Ending assets |
$ |
64,217 |
$ |
52,772 |
$ |
51,314 |
$ |
64,217 |
$ |
51,314 |
||||||
|
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. |
|
Unaudited Total Changes in Equity and Fixed-Income Assets |
||||||||||||||||
|
(in millions) |
||||||||||||||||
|
Quarter Ended |
Year Ended |
|||||||||||||||
|
Dec. 31, 2017 |
Sept. 30, 2017 |
Dec. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||||||
|
Funds |
||||||||||||||||
|
Beginning assets |
$ |
78,955 |
$ |
78,105 |
$ |
77,573 |
$ |
75,665 |
$ |
72,114 |
||||||
|
Sales |
5,050 |
4,699 |
6,232 |
20,578 |
26,241 |
|||||||||||
|
Redemptions |
(5,830) |
(5,566) |
(7,450) |
(24,259) |
(25,562) |
|||||||||||
|
Net (redemptions) sales |
(780) |
(867) |
(1,218) |
(3,681) |
679 |
|||||||||||
|
Net exchanges |
(16) |
(5) |
(19) |
(49) |
(110) |
|||||||||||
|
Acquisition-related |
0 |
0 |
0 |
435 |
0 |
|||||||||||
|
Market gains and losses1 |
1,142 |
1,722 |
(671) |
6,931 |
2,982 |
|||||||||||
|
Ending assets |
$ |
79,301 |
$ |
78,955 |
$ |
75,665 |
$ |
79,301 |
$ |
75,665 |
||||||
|
Separate accounts2 |
||||||||||||||||
|
Beginning assets |
$ |
40,872 |
$ |
40,189 |
$ |
38,385 |
$ |
38,030 |
$ |
32,561 |
||||||
|
Sales3 |
13,353 |
1,589 |
2,759 |
19,197 |
11,937 |
|||||||||||
|
Redemptions3 |
(2,337) |
(1,732) |
(2,205) |
(8,994) |
(8,566) |
|||||||||||
|
Net sales (redemptions)3 |
11,016 |
(143) |
554 |
10,203 |
3,371 |
|||||||||||
|
Net exchanges |
0 |
0 |
0 |
(56) |
1 |
|||||||||||
|
Market gains and losses1 |
1,167 |
826 |
(909) |
4,878 |
2,097 |
|||||||||||
|
Ending assets |
$ |
53,055 |
$ |
40,872 |
$ |
38,030 |
$ |
53,055 |
$ |
38,030 |
||||||
|
Total assets 2 |
||||||||||||||||
|
Beginning assets |
$ |
119,827 |
$ |
118,294 |
$ |
115,958 |
$ |
113,695 |
$ |
104,675 |
||||||
|
Sales3 |
18,403 |
6,288 |
8,991 |
39,775 |
38,178 |
|||||||||||
|
Redemptions3 |
(8,167) |
(7,298) |
(9,655) |
(33,253) |
(34,128) |
|||||||||||
|
Net sales (redemptions)3 |
10,236 |
(1,010) |
(664) |
6,522 |
4,050 |
|||||||||||
|
Net exchanges |
(16) |
(5) |
(19) |
(105) |
(109) |
|||||||||||
|
Acquisition-related |
0 |
0 |
0 |
435 |
0 |
|||||||||||
|
Market gains and losses1 |
2,309 |
2,548 |
(1,580) |
11,809 |
5,079 |
|||||||||||
|
Ending assets |
$ |
132,356 |
$ |
119,827 |
$ |
113,695 |
$ |
132,356 |
$ |
113,695 |
||||||
|
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. |
|
Unaudited Managed Assets (in millions) |
Dec. 31, 2017 |
Sept. 30, 2017 |
June 30, 2017 |
March 31, 2017 |
Dec. 31, 2016 |
||||||||||
|
By Asset Class |
|||||||||||||||
|
Equity |
$ |
68,139 |
$ |
67,055 |
$ |
65,787 |
$ |
64,770 |
$ |
62,381 |
|||||
|
Fixed-income |
64,217 |
52,772 |
52,507 |
51,780 |
51,314 |
||||||||||
|
Money market |
265,214 |
243,840 |
242,096 |
245,198 |
252,213 |
||||||||||
|
Total Managed Assets |
$ |
397,570 |
$ |
363,667 |
$ |
360,390 |
$ |
361,748 |
$ |
365,908 |
|||||
|
By Product Type |
|||||||||||||||
|
Funds: |
|||||||||||||||
|
Equity |
$ |
38,101 |
$ |
37,741 |
$ |
37,225 |
$ |
37,159 |
$ |
36,231 |
|||||
|
Fixed-income |
41,200 |
41,214 |
40,880 |
40,239 |
39,434 |
||||||||||
|
Money market |
185,536 |
177,865 |
173,338 |
175,232 |
206,411 |
||||||||||
|
Total Fund Assets |
$ |
264,837 |
$ |
256,820 |
$ |
251,443 |
$ |
252,630 |
$ |
282,076 |
|||||
|
Separate Accounts: |
|||||||||||||||
|
Equity |
$ |
30,038 |
$ |
29,314 |
$ |
28,562 |
$ |
27,611 |
$ |
26,150 |
|||||
|
Fixed-income |
23,017 |
11,558 |
11,627 |
11,541 |
11,880 |
||||||||||
|
Money market |
79,678 |
65,975 |
68,758 |
69,966 |
45,802 |
||||||||||
|
Total Separate Account Assets |
$ |
132,733 |
$ |
106,847 |
$ |
108,947 |
$ |
109,118 |
$ |
83,832 |
|||||
|
Total Managed Assets |
$ |
397,570 |
$ |
363,667 |
$ |
360,390 |
$ |
361,748 |
$ |
365,908 |
|||||
|
Unaudited Average Managed Assets |
Quarter Ended |
||||||||||||||
|
(in millions) |
Dec. 31, 2017 |
Sept. 30, 2017 |
June 30, 2017 |
March 31, 2017 |
Dec. 31, 2016 |
||||||||||
|
By Asset Class |
|||||||||||||||
|
Equity |
$ |
67,466 |
$ |
66,127 |
$ |
65,399 |
$ |
63,780 |
$ |
62,575 |
|||||
|
Fixed-income |
64,351 |
52,631 |
52,291 |
51,802 |
51,526 |
||||||||||
|
Money market |
250,197 |
241,749 |
242,298 |
247,591 |
244,197 |
||||||||||
|
Total Avg. Managed Assets |
$ |
382,014 |
$ |
360,507 |
$ |
359,988 |
$ |
363,173 |
$ |
358,298 |
|||||
|
By Product Type |
|||||||||||||||
|
Funds: |
|||||||||||||||
|
Equity |
$ |
37,926 |
$ |
37,301 |
$ |
37,325 |
$ |
36,957 |
$ |
36,667 |
|||||
|
Fixed-income |
41,240 |
40,967 |
40,670 |
40,086 |
39,571 |
||||||||||
|
Money market |
176,918 |
174,358 |
172,626 |
182,418 |
203,474 |
||||||||||
|
Total Avg. Fund Assets |
$ |
256,084 |
$ |
252,626 |
$ |
250,621 |
$ |
259,461 |
$ |
279,712 |
|||||
|
Separate Accounts: |
|||||||||||||||
|
Equity |
$ |
29,540 |
$ |
28,826 |
$ |
28,074 |
$ |
26,823 |
$ |
25,908 |
|||||
|
Fixed-income |
23,111 |
11,664 |
11,621 |
11,716 |
11,955 |
||||||||||
|
Money market |
73,279 |
67,391 |
69,672 |
65,173 |
40,723 |
||||||||||
|
Total Avg. Separate Account Assets |
$ |
125,930 |
$ |
107,881 |
$ |
109,367 |
$ |
103,712 |
$ |
78,586 |
|||||
|
Total Avg. Managed Assets |
$ |
382,014 |
$ |
360,507 |
$ |
359,988 |
$ |
363,173 |
$ |
358,298 |
|||||
|
Unaudited Average Managed Assets |
Year Ended |
|||||||
|
(in millions) |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||
|
By Asset Class |
||||||||
|
Equity |
$ |
65,693 |
$ |
59,431 |
||||
|
Fixed-income |
55,269 |
51,161 |
||||||
|
Money market |
245,459 |
252,346 |
||||||
|
Total Avg. Managed Assets |
$ |
366,421 |
$ |
362,938 |
||||
|
By Product Type |
||||||||
|
Funds: |
||||||||
|
Equity |
$ |
37,377 |
$ |
35,846 |
||||
|
Fixed-income |
40,741 |
38,772 |
||||||
|
Money market |
176,580 |
213,906 |
||||||
|
Total Avg. Fund Assets |
$ |
254,698 |
$ |
288,524 |
||||
|
Separate Accounts: |
||||||||
|
Equity |
$ |
28,316 |
$ |
23,585 |
||||
|
Fixed-income |
14,528 |
12,389 |
||||||
|
Money market |
68,879 |
38,440 |
||||||
|
Total Avg. Separate Account Assets |
$ |
111,723 |
$ |
74,414 |
||||
|
Total Avg. Managed Assets |
$ |
366,421 |
$ |
362,938 |
||||
View original content:http://www.prnewswire.com/news-releases/federated-investors-inc-reports-fourth-quarter-and-full-year-2017-earnings-300588579.html
SOURCE Federated Investors, Inc.
