Attached files
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| 8-K - 8-K - FEDERATED HERMES, INC. | a8-kx2016q2epr.htm |
Exhibit 99.1
Federated Investors, Inc. Reports Second Quarter 2016 Earnings
• | Q2 2016 EPS of $0.51 compared to $0.40 in Q2 2015 |
• | Equity assets reach all-time high of $61.9 billion on record net equity Q2 sales of $2.8 billion |
• | Board declares $0.25 per share dividend |
(PITTSBURGH, Pa., July 28, 2016) — Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.51 for Q2 2016, compared to $0.40 for the same quarter last year on net income of $52.7 million for Q2 2016, compared to $41.8 million for Q2 2015. Federated reported YTD 2016 EPS of $0.94, compared to $0.74 for the same period in 2015 on YTD 2016 net income of $98.2 million compared to $78.1 million for the same period last year. Results for Q2 2016 and YTD 2016 included a pre-tax impact of $3.5 million, or $0.02 EPS, from insurance proceeds.
Federated's total managed assets were $367.2 billion at June 30, 2016. Total managed assets were up $17.5 billion or 5 percent from $349.7 billion at June 30, 2015 and down $2.5 billion or 1 percent from $369.7 billion at March 31, 2016. Growth in equity assets was offset by lower money market and fixed-income assets in Q2 2016 compared to Q1 2016. Average managed assets for Q2 2016 were $364.2 billion, up $15.6 billion or 4 percent from $348.6 billion reported for Q2 2015 and up slightly from $363.9 billion reported for Q1 2016.
"Investors have sought income-oriented strategies against a backdrop of challenging market conditions," said J. Christopher Donahue, president and chief executive officer. "Federated is well-positioned, with a range of strong-performing diversified income solutions, including a unique stock and municipal-bond hybrid fund, our high-yield bond products and especially the Strategic Value Dividend strategies, which helped drive our record quarterly equity flows."
Federated's board of directors declared a dividend of $0.25 per share. The dividend is payable on Aug.15, 2016 to shareholders of record as of Aug. 8, 2016. During Q2 2016, Federated purchased 918,050 shares of Federated class B common stock for $27.3 million.
Federated's equity assets were a record $61.9 billion at June 30, 2016, up $7.1 billion or 13 percent from $54.8 billion at June 30, 2015 and up $5.4 billion or 10 percent from $56.5 billion at March 31, 2016. Top-selling equity funds during Q2 2016 on a net basis were Federated Strategic Value Dividend Fund, Federated Prudent Bear Fund, Federated International Strategic Value Dividend Fund, Federated Muni and Stock Advantage Fund and Federated MDT Small Cap Core Fund.
Federated's fixed-income assets were $50.3 billion at June 30, 2016, down $2.6 billion or 5 percent from $52.9 billion at June 30, 2015 and down $0.9 billion or 2 percent from $51.2 billion at March 31, 2016. Top-selling fixed-income funds during Q2 2016 on a net basis were Federated Institutional High Yield Bond Fund, Federated Sterling Cash Plus Fund, Federated High Yield Trust, Federated Short-Intermediate Duration Municipal Trust and Federated Municipal High Yield Advantage Fund.
Money market assets were $255.0 billion at June 30, 2016, up $13.0 billion or 5 percent from $242.0 billion at June 30, 2015 and down $7.0 billion or 3 percent from $262.0 billion at March 31, 2016. Money market mutual fund assets were $218.1 billion at
MEDIA: | MEDIA: | ANALYSTS: |
Ed Costello 412-288-7538 | Meghan McAndrew 412-288-8103 | Ray Hanley 412-288-1920 |
Federated Reports Q2 2016 Earnings | Page 2 of 10 | |
June 30, 2016, up $9.3 billion or 4 percent from $208.8 billion at June 30, 2015 and down $6.6 billion or 3 percent from $224.7 billion at March 31, 2016.
Financial Summary
Q2 2016 vs. Q2 2015
Revenue increased by $58.6 million or 26 percent primarily due to 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). See additional information about voluntary yield-related fee waivers in the table at the end of this financial summary.
During Q2 2016, Federated derived 53 percent of its revenue from equity and fixed-income assets (37 percent from equity assets and 16 percent from fixed-income assets) and 47 percent from money market assets.
Operating expenses increased by $40.2 million or 25 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers. The increase was partially offset by a reduction in certain operating expenses, primarily professional service fees, due to the recognition of $3.5 million in insurance proceeds in Q2 2016.
Q2 2016 vs. Q1 2016
Revenue increased by $14.6 million or 5 percent primarily due to a decrease in voluntary yield-related fee waivers and an increase in revenue from higher average equity assets. The increase in revenue was partially offset by a decrease in revenue from lower average money market assets.
Operating expenses increased by $1.5 million or 1 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers. The increase was partially offset by a reduction in certain operating expenses, primarily professional service fees, due to the recognition of $3.5 million in insurance proceeds in Q2 2016.
YTD 2016 vs. YTD 2015
Revenue increased by $110.2 million or 25 percent primarily due to a decrease in voluntary yield-related fee waivers and an increase in revenue from higher average money market assets. The increase in revenue was partially offset by a decrease in revenue from lower average fixed-income assets and a change in the mix of average equity assets.
For the first half of 2016, Federated derived 53 percent of its revenue from equity and fixed-income assets (37 percent from equity assets and 16 percent from fixed-income assets) and 47 percent from money market assets.
Operating expenses increased $76.3 million or 24 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers.
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).
Voluntary yield-related fee waivers and the resulting negative impact of these waivers could vary significantly in the future as they are contingent on a number of variables including, but not limited to, changes in assets within the money market funds, yields on instruments available for purchase by the money market funds, actions by the Federal Reserve, the U.S. Department
Federated Reports Q2 2016 Earnings | Page 3 of 10 | |
of the Treasury, the SEC, FSOC and other governmental entities, changes in fees and expenses of the money market funds, changes in the mix of money market customer assets, changes in customer relationships, changes in the money market product structures and offerings, demand for competing products, changes in the distribution fee arrangements with third parties, Federated’s willingness to continue the fee waivers and changes in the extent to which the impact of the waivers is shared by third parties.
Unaudited Money Market Fund Yield Waiver Impact to the Consolidated Statements of Income
(in millions)
Quarter Ended | Change Q2 2015 to Q2 2016 | Quarter Ended | Change Q1 2016 to Q2 2016 | Six Months Ended | Change YTD 2015 to YTD 2016 | ||||||||||||||||||||||||||
June 30, 2016 | June 30, 2015 | March 31, 2016 | June 30, 2016 | June 30, 2015 | |||||||||||||||||||||||||||
Investment advisory fees | $ | (6.2 | ) | $ | (53.4 | ) | $ | 47.2 | $ | (15.0 | ) | $ | 8.8 | $ | (21.2 | ) | $ | (115.7 | ) | $ | 94.5 | ||||||||||
Other service fees | (15.1 | ) | (30.8 | ) | 15.7 | (22.5 | ) | 7.4 | (37.6 | ) | (62.6 | ) | 25.0 | ||||||||||||||||||
Total revenue | (21.3 | ) | (84.2 | ) | 62.9 | (37.5 | ) | 16.2 | (58.8 | ) | (178.3 | ) | 119.5 | ||||||||||||||||||
Less: Reduction in distribution expense | 16.5 | 60.2 | (43.7 | ) | 27.9 | (11.4 | ) | 44.4 | 124.8 | (80.4 | ) | ||||||||||||||||||||
Operating income | (4.8 | ) | (24.0 | ) | 19.2 | (9.6 | ) | 4.8 | (14.4 | ) | (53.5 | ) | 39.1 | ||||||||||||||||||
Less: (Increase)/Reduction in noncontrolling interest | (0.2 | ) | 1.8 | (2.0 | ) | 0.2 | (0.4 | ) | 0.0 | 4.3 | (4.3 | ) | |||||||||||||||||||
Pre-tax impact | $ | (5.0 | ) | $ | (22.2 | ) | $ | 17.2 | $ | (9.4 | ) | $ | 4.4 | $ | (14.4 | ) | $ | (49.2 | ) | $ | 34.8 | ||||||||||
Federated will host an earnings conference call at 9 a.m. Eastern on July 29, 2016. 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 Federated section of FederatedInvestors.com. A replay will be available after 12:30 p.m. on July 29, 2016 and through Aug. 5, 2016 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 13640608.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $367.2 billion in assets as of June 30, 2016. With 123 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 8,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top 5 percent of money market fund managers in the industry, the top 5 percent of equity fund managers and the top 10 percent of fixed-income fund managers1. For more information, visit FederatedInvestors.com.
###
1) Strategic Insight, May 31, 2016. 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 adviser.
Certain statements in this press release, such as those related to the level of fee waivers and expenses incurred by the company, product demand and performance, investor interest and preferences, asset flows and mix, changes in customer relationships, changes in product structure, fee arrangements with customers, distribution expense, regulatory changes and market conditions 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, 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 and mix, 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 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 2016 Earnings | Page 4 of 10 | |
Unaudited Condensed Consolidated Statements of Income | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
Quarter Ended | % Change Q2 2015 to Q2 2016 | Quarter Ended | % Change Q1 2016 to Q2 2016 | |||||||||||
June 30, 2016 | June 30, 2015 | March 31, 2016 | ||||||||||||
Revenue | ||||||||||||||
Investment advisory fees, net | $ | 192,663 | $ | 154,429 | 25 | % | $ | 181,847 | 6 | % | ||||
Administrative service fees, net—affiliates | 53,131 | 51,605 | 3 | 53,473 | (1 | ) | ||||||||
Other service fees, net | 39,943 | 21,031 | 90 | 35,898 | 11 | |||||||||
Other, net | 1,001 | 1,062 | (6 | ) | 891 | 12 | ||||||||
Total Revenue | 286,738 | 228,127 | 26 | 272,109 | 5 | |||||||||
Operating Expenses | ||||||||||||||
Distribution | 94,741 | 54,058 | 75 | 88,381 | 7 | |||||||||
Compensation and related | 75,225 | 70,940 | 6 | 76,770 | (2 | ) | ||||||||
Systems and communications | 7,767 | 6,979 | 11 | 7,865 | (1 | ) | ||||||||
Office and occupancy | 6,675 | 6,710 | (1 | ) | 6,888 | (3 | ) | |||||||
Advertising and promotional | 3,938 | 3,504 | 12 | 3,442 | 14 | |||||||||
Travel and related | 3,656 | 3,533 | 3 | 2,906 | 26 | |||||||||
Professional service fees | 3,645 | 7,285 | (50 | ) | 8,881 | (59 | ) | |||||||
Other | 3,421 | 5,839 | (41 | ) | 2,421 | 41 | ||||||||
Total Operating Expenses | 199,068 | 158,848 | 25 | 197,554 | 1 | |||||||||
Operating Income | 87,670 | 69,279 | 27 | 74,555 | 18 | |||||||||
Nonoperating Income (Expenses) | ||||||||||||||
Investment income, net | 1,105 | 410 | 170 | 2,664 | (59 | ) | ||||||||
Debt expense | (1,020 | ) | (974 | ) | 5 | (1,059 | ) | (4 | ) | |||||
Other, net | (2 | ) | (15 | ) | (87 | ) | (5 | ) | (60 | ) | ||||
Total Nonoperating Income (Expenses), net | 83 | (579 | ) | 114 | 1,600 | (95 | ) | |||||||
Income before income taxes | 87,753 | 68,700 | 28 | 76,155 | 15 | |||||||||
Income tax provision1 | 31,335 | 26,437 | 19 | 27,196 | 15 | |||||||||
Net income including the noncontrolling interests in subsidiaries | 56,418 | 42,263 | 33 | 48,959 | 15 | |||||||||
Less: Net income attributable to the noncontrolling interests in subsidiaries | 3,709 | 504 | NM | 3,516 | NM | |||||||||
Net Income | $ | 52,709 | $ | 41,759 | 26 | % | $ | 45,443 | 16 | % | ||||
Amounts Attributable to Federated Investors, Inc. | ||||||||||||||
Earnings Per Share2 | ||||||||||||||
Basic and diluted | $ | 0.51 | $ | 0.40 | 28 | % | $ | 0.44 | 16 | % | ||||
Weighted-average shares outstanding | ||||||||||||||
Basic | 99,592 | 100,732 | 99,802 | |||||||||||
Diluted | 99,593 | 100,734 | 99,803 | |||||||||||
Dividends declared per share | $ | 0.25 | $ | 0.25 | $ | 0.25 | ||||||||
1) Federated adopted Accounting Standards Update 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payments Accounting, effective Jan. 1, 2016, which requires all excess tax benefits and deficiencies to be recognized in the income-tax provision. As a result of this adoption, the income-tax provision for March 31, 2016 was reduced by $0.2 million from amounts previously reported.
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 $2.1 million, $1.7 million and $1.8 million available to unvested restricted shareholders for the quarterly periods ended June 30, 2016, June 30, 2015 and March 31, 2016, respectively, was excluded from the computation of earnings per share.
Federated Reports Q2 2016 Earnings | Page 5 of 10 | |
Unaudited Condensed Consolidated Statements of Income | ||||||||
(in thousands, except per share data) | ||||||||
Six Months Ended | ||||||||
June 30, 2016 | June 30, 2015 | % Change | ||||||
Revenue | ||||||||
Investment advisory fees, net | $ | 374,510 | $ | 300,987 | 24 | % | ||
Administrative service fees, net - affiliates | 106,604 | 104,622 | 2 | |||||
Other service fees, net | 75,841 | 40,817 | 86 | |||||
Other, net | 1,892 | 2,223 | (15 | ) | ||||
Total Revenue | 558,847 | 448,649 | 25 | |||||
Operating Expenses | ||||||||
Distribution | 183,122 | 107,553 | 70 | |||||
Compensation and related | 151,995 | 147,438 | 3 | |||||
Systems and communications | 15,632 | 13,849 | 13 | |||||
Office and occupancy | 13,563 | 13,563 | 0 | |||||
Professional service fees | 12,526 | 15,167 | (17 | ) | ||||
Advertising and promotional | 7,380 | 6,975 | 6 | |||||
Travel and related | 6,562 | 6,291 | 4 | |||||
Other | 5,842 | 9,496 | (38 | ) | ||||
Total Operating Expenses | 396,622 | 320,332 | 24 | |||||
Operating Income | 162,225 | 128,317 | 26 | |||||
Nonoperating Income (Expenses) | ||||||||
Investment income, net | 3,769 | 1,300 | 190 | |||||
Debt expense | (2,079 | ) | (2,347 | ) | (11 | ) | ||
Other, net | (7 | ) | (28 | ) | (75 | ) | ||
Total Nonoperating Income (Expenses), net | 1,683 | (1,075 | ) | 257 | ||||
Income before income taxes | 163,908 | 127,242 | 29 | |||||
Income tax provision | 58,531 | 48,561 | 21 | |||||
Net income including the noncontrolling interests in subsidiaries | 105,377 | 78,681 | 34 | |||||
Less: Net income attributable to the noncontrolling interests in subsidiaries | 7,225 | 615 | NM | |||||
Net Income | $ | 98,152 | $ | 78,066 | 26 | % | ||
Amounts Attributable to Federated Investors, Inc. | ||||||||
Earnings Per Share1 | ||||||||
Basic and diluted | $ | 0.94 | $ | 0.74 | 27 | % | ||
Weighted-average shares outstanding | ||||||||
Basic | 99,697 | 100,686 | ||||||
Diluted | 99,698 | 100,688 | ||||||
Dividends declared per share | $ | 0.50 | $ | 0.50 | ||||
1) 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 $3.1million available to unvested restricted shareholders for the six months ended June 30, 2016 and June 30, 2015, respectively, was excluded from the computation of earnings per share.
Federated Reports Q2 2016 Earnings | Page 6 of 10 | |
Unaudited Condensed Consolidated Balance Sheets | ||||||
(in thousands) | June 30, 2016 | Dec. 31, 2015 | ||||
Assets | ||||||
Cash and other investments | $ | 352,451 | $ | 346,815 | ||
Other current assets | 53,988 | 49,013 | ||||
Intangible assets, net and goodwill | 733,554 | 734,492 | ||||
Other long-term assets | 59,844 | 56,883 | ||||
Total Assets | $ | 1,199,837 | $ | 1,187,203 | ||
Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||
Current liabilities | $ | 135,076 | $ | 159,208 | ||
Long-term debt | 178,500 | 191,250 | ||||
Other long-term liabilities | 187,484 | 179,039 | ||||
Redeemable noncontrolling interests | 29,670 | 8,734 | ||||
Equity excluding treasury stock | 888,723 | 840,911 | ||||
Treasury stock | (219,616 | ) | (191,939 | ) | ||
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ | 1,199,837 | $ | 1,187,203 | ||
Federated Reports Q2 2016 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, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||
Equity funds | ||||||||||||||||
Beginning assets | $ | 34,935 | $ | 34,125 | $ | 34,951 | $ | 34,125 | $ | 33,141 | ||||||
Sales | 3,117 | 3,439 | 2,389 | 6,556 | 5,194 | |||||||||||
Redemptions | (2,294 | ) | (2,520 | ) | (1,923 | ) | (4,814 | ) | (3,837 | ) | ||||||
Net sales | 823 | 919 | 466 | 1,742 | 1,357 | |||||||||||
Net exchanges | (16 | ) | (37 | ) | 6 | (53 | ) | 45 | ||||||||
Market gains and losses/reinvestments1 | 1,334 | (72 | ) | 110 | 1,262 | 990 | ||||||||||
Ending assets | $ | 37,076 | $ | 34,935 | $ | 35,533 | $ | 37,076 | $ | 35,533 | ||||||
Equity separate accounts2 | ||||||||||||||||
Beginning assets | $ | 21,550 | $ | 19,431 | $ | 19,086 | $ | 19,431 | $ | 18,285 | ||||||
Sales3 | 3,156 | 2,350 | 1,449 | 5,506 | 3,142 | |||||||||||
Redemptions3 | (1,153 | ) | (1,229 | ) | (1,084 | ) | (2,382 | ) | (2,038 | ) | ||||||
Net sales3 | 2,003 | 1,121 | 365 | 3,124 | 1,104 | |||||||||||
Market gains and losses4 | 1,232 | 998 | (195 | ) | 2,230 | (133 | ) | |||||||||
Ending assets | $ | 24,785 | $ | 21,550 | $ | 19,256 | $ | 24,785 | $ | 19,256 | ||||||
Total equity2 | ||||||||||||||||
Beginning assets | $ | 56,485 | $ | 53,556 | $ | 54,037 | $ | 53,556 | $ | 51,426 | ||||||
Sales3 | 6,273 | 5,789 | 3,838 | 12,062 | 8,336 | |||||||||||
Redemptions3 | (3,447 | ) | (3,749 | ) | (3,007 | ) | (7,196 | ) | (5,875 | ) | ||||||
Net sales3 | 2,826 | 2,040 | 831 | 4,866 | 2,461 | |||||||||||
Net exchanges | (16 | ) | (37 | ) | 6 | (53 | ) | 45 | ||||||||
Market gains and losses/reinvestments1 | 2,566 | 926 | (85 | ) | 3,492 | 857 | ||||||||||
Ending assets | $ | 61,861 | $ | 56,485 | $ | 54,789 | $ | 61,861 | $ | 54,789 | ||||||
Fixed-income funds | ||||||||||||||||
Beginning assets | $ | 37,826 | $ | 37,989 | $ | 41,039 | $ | 37,989 | $ | 40,456 | ||||||
Sales | 3,467 | 3,334 | 3,251 | 6,801 | 7,742 | |||||||||||
Redemptions | (3,364 | ) | (4,080 | ) | (4,004 | ) | (7,444 | ) | (8,197 | ) | ||||||
Net sales (redemptions) | 103 | (746 | ) | (753 | ) | (643 | ) | (455 | ) | |||||||
Net exchanges | 18 | (49 | ) | (22 | ) | (31 | ) | (59 | ) | |||||||
Market gains and losses/reinvestments1 | 664 | 632 | (222 | ) | 1,296 | 100 | ||||||||||
Ending assets | $ | 38,611 | $ | 37,826 | $ | 40,042 | $ | 38,611 | $ | 40,042 | ||||||
Fixed-income separate accounts2 | ||||||||||||||||
Beginning assets | $ | 13,352 | $ | 13,130 | $ | 12,523 | $ | 13,130 | $ | 12,251 | ||||||
Sales3 | 147 | 197 | 754 | 344 | 993 | |||||||||||
Redemptions3 | (2,105 | ) | (328 | ) | (277 | ) | (2,433 | ) | (481 | ) | ||||||
Net (redemptions) sales3 | (1,958 | ) | (131 | ) | 477 | (2,089 | ) | 512 | ||||||||
Market gains and losses4 | 320 | 353 | (138 | ) | 673 | 99 | ||||||||||
Ending assets | $ | 11,714 | $ | 13,352 | $ | 12,862 | $ | 11,714 | $ | 12,862 | ||||||
Total fixed income2 | ||||||||||||||||
Beginning assets | $ | 51,178 | $ | 51,119 | $ | 53,562 | $ | 51,119 | $ | 52,707 | ||||||
Sales3 | 3,614 | 3,531 | 4,005 | 7,145 | 8,735 | |||||||||||
Redemptions3 | (5,469 | ) | (4,408 | ) | (4,281 | ) | (9,877 | ) | (8,678 | ) | ||||||
Net (redemptions) sales3 | (1,855 | ) | (877 | ) | (276 | ) | (2,732 | ) | 57 | |||||||
Net exchanges | 18 | (49 | ) | (22 | ) | (31 | ) | (59 | ) | |||||||
Market gains and losses/reinvestments1 | 984 | 985 | (360 | ) | 1,969 | 199 | ||||||||||
Ending assets | $ | 50,325 | $ | 51,178 | $ | 52,904 | $ | 50,325 | $ | 52,904 | ||||||
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 Market gains and losses.
4) Reflects the approximate changes in the fair value of the securities held by the portfolios.
Federated Reports Q2 2016 Earnings | Page 8 of 10 | |
Unaudited Total Changes in Equity and Fixed-Income Assets
(in millions)
Quarter Ended | Six Months Ended | |||||||||||||||
June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||
Funds | ||||||||||||||||
Beginning assets | $ | 72,761 | $ | 72,114 | $ | 75,990 | $ | 72,114 | $ | 73,597 | ||||||
Sales | 6,584 | 6,773 | 5,640 | 13,357 | 12,936 | |||||||||||
Redemptions | (5,658 | ) | (6,600 | ) | (5,927 | ) | (12,258 | ) | (12,034 | ) | ||||||
Net sales (redemptions) | 926 | 173 | (287 | ) | 1,099 | 902 | ||||||||||
Net exchanges | 2 | (86 | ) | (16 | ) | (84 | ) | (14 | ) | |||||||
Market gains and losses/reinvestments1 | 1,998 | 560 | (112 | ) | 2,558 | 1,090 | ||||||||||
Ending assets | $ | 75,687 | $ | 72,761 | $ | 75,575 | $ | 75,687 | $ | 75,575 | ||||||
Separate accounts2 | ||||||||||||||||
Beginning assets | $ | 34,902 | $ | 32,561 | $ | 31,609 | $ | 32,561 | $ | 30,536 | ||||||
Sales3 | 3,303 | 2,547 | 2,203 | 5,850 | 4,135 | |||||||||||
Redemptions3 | (3,258 | ) | (1,557 | ) | (1,361 | ) | (4,815 | ) | (2,519 | ) | ||||||
Net sales3 | 45 | 990 | 842 | 1,035 | 1,616 | |||||||||||
Market gains and losses4 | 1,552 | 1,351 | (333 | ) | 2,903 | (34 | ) | |||||||||
Ending assets | $ | 36,499 | $ | 34,902 | $ | 32,118 | $ | 36,499 | $ | 32,118 | ||||||
Total assets 2 | ||||||||||||||||
Beginning assets | $ | 107,663 | $ | 104,675 | $ | 107,599 | $ | 104,675 | $ | 104,133 | ||||||
Sales3 | 9,887 | 9,320 | 7,843 | 19,207 | 17,071 | |||||||||||
Redemptions3 | (8,916 | ) | (8,157 | ) | (7,288 | ) | (17,073 | ) | (14,553 | ) | ||||||
Net sales3 | 971 | 1,163 | 555 | 2,134 | 2,518 | |||||||||||
Net exchanges | 2 | (86 | ) | (16 | ) | (84 | ) | (14 | ) | |||||||
Market gains and losses/reinvestments1 | 3,550 | 1,911 | (445 | ) | 5,461 | 1,056 | ||||||||||
Ending assets | $ | 112,186 | $ | 107,663 | $ | 107,693 | $ | 112,186 | $ | 107,693 | ||||||
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 Market gains and losses.
4) Reflects the approximate changes in the fair value of the securities held by the portfolios.
Federated Reports Q2 2016 Earnings | Page 9 of 10 | |
(unaudited) | |||||||||||||||
MANAGED ASSETS (in millions) | June 30, 2016 | March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 61,861 | $ | 56,485 | $ | 53,556 | $ | 51,956 | $ | 54,789 | |||||
Fixed-income | 50,325 | 51,178 | 51,119 | 52,065 | 52,904 | ||||||||||
Money market | 254,992 | 262,030 | 256,437 | 246,937 | 241,982 | ||||||||||
Total Managed Assets | $ | 367,178 | $ | 369,693 | $ | 361,112 | $ | 350,958 | $ | 349,675 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 37,076 | $ | 34,935 | $ | 34,125 | $ | 33,273 | $ | 35,533 | |||||
Fixed-income | 38,611 | 37,826 | 37,989 | 38,982 | 40,042 | ||||||||||
Money market | 218,107 | 224,681 | 221,615 | 216,252 | 208,786 | ||||||||||
Total Fund Assets | $ | 293,794 | $ | 297,442 | $ | 293,729 | $ | 288,507 | $ | 284,361 | |||||
Separate accounts: | |||||||||||||||
Equity | $ | 24,785 | $ | 21,550 | $ | 19,431 | $ | 18,683 | $ | 19,256 | |||||
Fixed-income | 11,714 | 13,352 | 13,130 | 13,083 | 12,862 | ||||||||||
Money market | 36,885 | 37,349 | 34,822 | 30,685 | 33,196 | ||||||||||
Total Separate Accounts | $ | 73,384 | $ | 72,251 | $ | 67,383 | $ | 62,451 | $ | 65,314 | |||||
Total Managed Assets | $ | 367,178 | $ | 369,693 | $ | 361,112 | $ | 350,958 | $ | 349,675 | |||||
AVERAGE MANAGED ASSETS | Quarter Ended | ||||||||||||||
(in millions) | June 30, 2016 | March 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | June 30, 2015 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 58,680 | $ | 52,786 | $ | 54,097 | $ | 54,238 | $ | 55,476 | |||||
Fixed-income | 50,793 | 50,880 | 51,922 | 52,577 | 53,319 | ||||||||||
Money market | 254,693 | 260,203 | 247,986 | 245,133 | 239,774 | ||||||||||
Total Avg. Assets | $ | 364,166 | $ | 363,869 | $ | 354,005 | $ | 351,948 | $ | 348,569 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 35,891 | $ | 32,921 | $ | 34,726 | $ | 35,181 | $ | 35,998 | |||||
Fixed-income | 38,214 | 37,776 | 38,779 | 39,526 | 40,574 | ||||||||||
Money market | 217,226 | 221,848 | 217,031 | 213,633 | 205,943 | ||||||||||
Total Avg. Fund Assets | $ | 291,331 | $ | 292,545 | $ | 290,536 | $ | 288,340 | $ | 282,515 | |||||
Separate accounts: | |||||||||||||||
Equity | $ | 22,789 | $ | 19,865 | $ | 19,371 | $ | 19,057 | $ | 19,478 | |||||
Fixed-income | 12,579 | 13,104 | 13,143 | 13,051 | 12,745 | ||||||||||
Money market | 37,467 | 38,355 | 30,955 | 31,500 | 33,831 | ||||||||||
Total Avg. Separate Accounts | $ | 72,835 | $ | 71,324 | $ | 63,469 | $ | 63,608 | $ | 66,054 | |||||
Total Avg. Managed Assets | $ | 364,166 | $ | 363,869 | $ | 354,005 | $ | 351,948 | $ | 348,569 | |||||
Federated Reports Q2 2016 Earnings | Page 10 of 10 | |
(unaudited) | ||||||||
AVERAGE MANAGED ASSETS | Six Months Ended | |||||||
(in millions) | June 30, 2016 | June 30, 2015 | ||||||
By Asset Class | ||||||||
Equity | $ | 55,733 | $ | 54,130 | ||||
Fixed-income | 50,836 | 53,362 | ||||||
Money market | 257,448 | 246,518 | ||||||
Total Avg. Assets | $ | 364,017 | $ | 354,010 | ||||
By Product Type | ||||||||
Funds: | ||||||||
Equity | $ | 34,406 | $ | 35,080 | ||||
Fixed-income | 37,995 | 40,793 | ||||||
Money market | 219,537 | 212,056 | ||||||
Total Avg. Fund Assets | $ | 291,938 | $ | 287,929 | ||||
Separate accounts: | ||||||||
Equity | $ | 21,327 | $ | 19,050 | ||||
Fixed-income | 12,841 | 12,569 | ||||||
Money market | 37,911 | 34,462 | ||||||
Total Avg. Separate Accounts | $ | 72,079 | $ | 66,081 | ||||
Total Avg. Managed Assets | $ | 364,017 | $ | 354,010 | ||||