PITTSBURGH, Oct. 24, 2019 /PRNewswire/ -- Federated
Investors, Inc. (NYSE: FII), a leading global investment manager,
today reported earnings per diluted share (EPS) of $0.72 for Q3 2019, compared to $0.59 for the same quarter last year, on net
income of $73.0 million for Q3 2019,
compared to $59.6 million for Q3
2018. Federated reported YTD 2019 EPS of $1.88, compared to $1.57 for the same period in 2018, on YTD 2019
net income of $190.2 million,
compared to $158.8 million for the
same period in 2018. Federated's YTD 2018 results included a
$27.2 million pre-tax net expense,
representing $0.21 per diluted share
net of tax, primarily related to two foreign currency forward
derivative instruments (FX Forward Loss) entered into in connection
with Federated's Q3 2018 acquisition of a majority interest in
Hermes Fund Managers Limited (Hermes).
Federated's total managed assets were a record $527.2 billion at Sept.
30, 2019, up $90.0 billion or
21% from $437.2 billion at
Sept. 30, 2018 and up $25.0
billion or 5% from $502.2
billion at June 30, 2019. Total average managed assets
for Q3 2019 were $518.0 billion, up
$84.1 billion or 19% from
$433.9 billion reported for Q3 2018
and up $24.7 billion or 5% from
$493.3 billion reported for Q2
2019.
"As the Federal Reserve cut rates twice in the quarter,
investors sought Federated's range of ultrashort products and other
fixed-income strategies, and our liquidity management solutions
approached record highs," said J. Christopher Donahue,
president and chief executive officer. "Federated also continued to
see interest in the growth-focused Federated Kaufmann Small Cap
Fund, as well as a range of Hermes equity strategies."
Federated's board of directors declared a quarterly dividend of
$0.27 per share. The dividend is
payable on Nov. 15, 2019 to
shareholders of record as of Nov. 8,
2019. During Q3 2019, Federated purchased 79,592 shares of
Federated class B common stock for $1.9 million.
Federated's equity assets were $80.8
billion at Sept. 30, 2019,
down $3.3 billion or 4% from
$84.1 billion at Sept. 30, 2018
and down $1.2 billion or 1% from
$82.0 billion at June 30, 2019.
Top-selling equity funds during Q3 2019 on a net basis were
Federated Kaufmann Small Cap Fund; Hermes Global Emerging Markets
Fund; Hermes SDG Engagement Equity Fund; Hermes Global Equity
ESG Fund; and Federated MDT Small Cap Growth Fund.
Federated's fixed-income assets were a record $65.8 billion at Sept. 30,
2019, up $0.4 billion or 1%
from $65.4 billion at Sept. 30,
2018 and up $0.7 billion or 1% from
$65.1 billion at June 30, 2019.
Top-selling fixed-income funds during Q3 2019 on a net basis were
Federated Bond Fund; Federated Municipal Ultrashort Fund; Federated
Institutional High Yield Bond Fund; Hermes Global High Yield Credit
Fund; and Federated Government Ultrashort Duration Fund.
Money market assets were $359.3
billion at Sept. 30, 2019, up
$95.1 billion or 36% from
$264.2 billion at Sept. 30, 2018
and up $26.2 billion or 8% from
$333.1 billion at June 30, 2019.
Money market fund assets were $261.2
billion at Sept. 30, 2019, up
$78.2 billion or 43% from
$183.0 billion at Sept. 30, 2018
and up $29.9 billion or 13% from
$231.3 billion at June 30,
2019.
Federated's money market separate account assets were
$98.1 billion at Sept. 30, 2019, up $16.8
billion or 21% from $81.3
billion at Sept. 30, 2018 and down $3.6 billion or 4% from $101.7 billion at June 30, 2019.
Financial Summary
Q3 2019 vs. Q3 2018
Revenue increased $31.7 million or
10% primarily due to higher average money market assets. This
increase in revenue was partially offset by a decrease in revenue
from lower average equity assets.
During Q3 2019, Federated derived 58% of its revenue from
long-term assets (40% from equity assets, 13% from fixed-income
assets and 5% from alternative/private markets and multi-asset),
41% from money market assets, and 1% from sources other than
managed assets.
Operating expenses increased $24.3
million or 11% primarily due to an increase in distribution
expenses associated with higher average money market fund assets
and an increase in compensation and related expenses.
Nonoperating income (expenses), net increased $5.6 million primarily due to an increase in
private equity carried interest income on assets managed by a
nonconsolidated entity.
Q3 2019 vs. Q2 2019
Revenue increased $18.9 million or
6% primarily due to higher average money market assets and an extra
day of revenue in Q3 2019.
Operating expenses increased $14.5
million or 6% primarily due to an increase in distribution
expenses associated with higher average money market fund assets
and an increase in compensation and related expenses.
Nonoperating income (expenses), net increased $8.1 million primarily due to an increase in
private equity carried interest income on assets managed by a
nonconsolidated entity.
YTD 2019 vs. YTD 2018
Revenue increased $140.4 million
or 17% primarily due to the consolidation of Hermes' revenue (which
included performance fees of $4.2
million in 2019) for three quarters in 2019 as compared to
one quarter in 2018 and higher average money market assets. These
increases were partially offset by a decrease in revenue from lower
average equity and multi-asset assets and a change in the mix of
average domestic fixed-income assets.
For the first nine months of 2019, Federated derived 60% of its
revenue from long-term assets (41% from equity assets, 14% from
fixed-income assets and 5% from alternative/private markets and
multi-asset), 39% from money market assets, and 1% from sources
other than managed assets.
Operating expenses increased $137.6
million or 23% primarily due to the consolidation of Hermes'
expenses for three quarters in 2019 as compared to one quarter in
2018 and an increase in distribution expenses associated with
higher average money market fund assets.
Nonoperating income (expenses), net increased $36.4 million primarily due to the FX Forward
Loss recorded in Q2 2018.
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 Oct. 25,
2019. Investors are invited to listen to Federated's
earnings teleconference by calling 844-602-0380 (domestic) or
862-298-0970 (international) prior to the 9 a.m. start time.
The call may also be accessed online in real time via the
About section of FederatedInvestors.com. A replay will be
available from approximately 12:30
p.m. Eastern on Oct. 25, 2019
until Nov. 1, 2019 by calling
877-481-4010 (domestic) or 919-882-2331 (international) and
entering access code 54018. An online replay will be available via
FederatedInvestors.com for one year.
Federated Investors, Inc. is a leading global investment manager
with $527.2 billion in assets under
management as of Sept. 30, 2019. Our
investment solutions span 131 equity, fixed-income,
alternative/private markets, multi-asset and liquidity management
strategies, and a range of separately managed account strategies.
Providing comprehensive investment management to more than 11,000
institutions and intermediaries, our clients include corporations,
government entities, insurance companies, foundations and
endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated's nearly 1,900 employees
include those in New York,
Boston, London and several other offices worldwide. In
2018, Federated acquired a majority interest in Hermes Investment
Management, which provides world-class active management and
stewardship services.
Federated ranks in the top 6% of equity fund managers in the
industry, the top 7% of money market fund managers and the top 11%
of fixed-income fund managers1. Federated also ranks as
the 10th-largest SMA manager2. Information regarding
Hermes is available at Hermes-Investment.com. An analyst
presentation that includes information about Hermes also is
available. For more information, visit
FederatedInvestors.com.
###
1) Strategic Insight, Sept. 30,
2019. Based on assets under management in open-end
funds.
2) Money Management Institute/Cerulli, Q2
2019.
Federated Securities Corp. is distributor of the
Federated funds.
Separately managed accounts are made
available through Federated Global Investment Management Corp.,
Federated Investment Counseling, Federated MDTA LLC, Hermes
Investment Management Limited and Hermes European Equities Limited,
each a registered investment adviser.
Certain statements in this press release, such as those related
to performance, investor preferences and demand, and asset flows
and mix, 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, predict whether
performance fees or carried interest will be earned and retained,
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
Q3 2018 to
Q3 2019
|
|
Quarter
Ended
|
% Change
Q2 2019 to
Q3 2019
|
|
Sept. 30,
2019
|
Sept. 30,
2018
|
|
June 30,
2019
|
Revenue
|
|
|
|
|
|
|
Investment advisory
fees, net
|
$
|
232,106
|
|
$
|
217,036
|
|
7
|
%
|
|
$
|
220,669
|
|
5
|
%
|
Administrative
service fees, net—affiliates
|
64,216
|
|
49,855
|
|
29
|
|
|
57,968
|
|
11
|
|
Other service fees,
net
|
44,018
|
|
41,725
|
|
5
|
|
|
42,842
|
|
3
|
|
Total
Revenue
|
340,340
|
|
308,616
|
|
10
|
|
|
321,479
|
|
6
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Compensation and
related
|
112,247
|
|
103,092
|
|
9
|
|
|
107,248
|
|
5
|
|
Distribution
|
88,082
|
|
72,153
|
|
22
|
|
|
82,000
|
|
7
|
|
Systems and
communications
|
13,353
|
|
12,213
|
|
9
|
|
|
12,111
|
|
10
|
|
Office and
occupancy
|
10,855
|
|
9,332
|
|
16
|
|
|
11,066
|
|
(2)
|
|
Professional service
fees
|
10,678
|
|
13,535
|
|
(21)
|
|
|
10,281
|
|
4
|
|
Advertising and
promotional
|
4,102
|
|
4,502
|
|
(9)
|
|
|
4,697
|
|
(13)
|
|
Travel and
related
|
4,158
|
|
4,622
|
|
(10)
|
|
|
4,459
|
|
(7)
|
|
Other
|
7,558
|
|
7,269
|
|
4
|
|
|
4,677
|
|
62
|
|
Total Operating
Expenses
|
251,033
|
|
226,718
|
|
11
|
|
|
236,539
|
|
6
|
|
Operating
Income
|
89,307
|
|
81,898
|
|
9
|
|
|
84,940
|
|
5
|
|
|
|
|
|
|
|
|
Nonoperating
Income (Expenses)
|
|
|
|
|
|
|
Investment income
(loss), net
|
444
|
|
1,199
|
|
(63)
|
|
|
1,526
|
|
(71)
|
|
Debt
expense
|
(1,239)
|
|
(1,602)
|
|
(23)
|
|
|
(1,332)
|
|
(7)
|
|
Other, net
|
8,264
|
|
2,240
|
|
269
|
|
|
(832)
|
|
NM
|
Total Nonoperating
Income (Expenses), net
|
7,469
|
|
1,837
|
|
307
|
|
|
(638)
|
|
NM
|
Income before income
taxes
|
96,776
|
|
83,735
|
|
16
|
|
|
84,302
|
|
15
|
|
Income tax
provision
|
23,191
|
|
21,741
|
|
7
|
|
|
20,462
|
|
13
|
|
Net income including
the noncontrolling interests in subsidiaries
|
73,585
|
|
61,994
|
|
19
|
|
|
63,840
|
|
15
|
|
Less: Net income
(loss) attributable to the noncontrolling interests in
subsidiaries
|
623
|
|
2,386
|
|
(74)
|
|
|
1,116
|
|
(44)
|
|
Net Income
|
$
|
72,962
|
|
$
|
59,608
|
|
22
|
%
|
|
$
|
62,724
|
|
16
|
%
|
|
|
|
|
|
|
|
Amounts
Attributable to Federated Investors, Inc.
|
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
0.72
|
|
$
|
0.59
|
|
22
|
%
|
|
$
|
0.62
|
|
16
|
%
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
Basic and
diluted
|
97,306
|
|
96,664
|
|
|
|
97,330
|
|
|
Dividends Declared
Per Share
|
$
|
0.27
|
|
$
|
0.27
|
|
|
|
$
|
0.27
|
|
|
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 basic earnings per share under the "two-class
method." As such, total net income of $2.8 million, $2.4 million
and $2.4 million available to unvested restricted Federated
shareholders for the quarterly periods ended Sept. 30, 2019, Sept.
30, 2018 and June 30, 2019, 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
available to unvested shareholders of a nonpublic consolidated
subsidiary.
|
Unaudited
Condensed Consolidated Statements of Income
|
(in thousands,
except per share data)
|
|
|
|
|
Nine Months
Ended
|
|
|
Sept. 30,
2019
|
Sept. 30,
2018
|
%
Change
|
Revenue
|
|
|
|
Investment advisory
fees, net
|
$
|
663,974
|
|
$
|
559,429
|
|
19
|
%
|
Administrative
service fees, net—affiliates
|
176,319
|
|
147,248
|
|
20
|
|
Other service fees,
net
|
128,576
|
|
121,784
|
|
6
|
|
Total
Revenue
|
968,869
|
|
828,461
|
|
17
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
Compensation and
related
|
330,712
|
|
255,613
|
|
29
|
|
Distribution
|
247,713
|
|
214,098
|
|
16
|
|
Systems and
communications
|
38,258
|
|
28,397
|
|
35
|
|
Office and
occupancy
|
33,283
|
|
24,238
|
|
37
|
|
Professional service
fees
|
31,445
|
|
32,443
|
|
(3)
|
|
Advertising and
promotional
|
12,989
|
|
10,967
|
|
18
|
|
Travel and
related
|
12,465
|
|
10,967
|
|
14
|
|
Other
|
16,868
|
|
9,412
|
|
79
|
|
Total Operating
Expenses
|
723,733
|
|
586,135
|
|
23
|
|
Operating
Income
|
245,136
|
|
242,326
|
|
1
|
|
|
|
|
|
Nonoperating
Income (Expenses)
|
|
|
|
Investment income
(loss), net
|
4,679
|
|
3,294
|
|
42
|
|
Debt
expense
|
(3,971)
|
|
(4,363)
|
|
(9)
|
|
Other, net
|
7,756
|
|
(26,877)
|
|
129
|
|
Total Nonoperating
Income (Expenses), net
|
8,464
|
|
(27,946)
|
|
130
|
|
Income before income
taxes
|
253,600
|
|
214,380
|
|
18
|
|
Income tax
provision
|
61,564
|
|
53,713
|
|
15
|
|
Net income including
the noncontrolling interests in subsidiaries
|
192,036
|
|
160,667
|
|
20
|
|
Less: Net income
(loss) attributable to the noncontrolling interests in
subsidiaries
|
1,804
|
|
1,906
|
|
(5)
|
|
Net Income
|
$
|
190,232
|
|
$
|
158,761
|
|
20
|
%
|
|
|
|
|
Amounts
Attributable to Federated Investors, Inc.
|
|
|
|
Earnings Per
Share1
|
|
|
|
Basic and
diluted
|
$
|
1.88
|
|
$
|
1.57
|
|
20
|
%
|
Weighted-Average
Shares Outstanding
|
|
|
|
Basic
|
97,211
|
|
97,013
|
|
|
Diluted
|
97,211
|
|
97,014
|
|
|
Dividends Declared
Per Share
|
$
|
0.81
|
|
$
|
0.79
|
|
|
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 basic earnings per share under the "two-class
method." As such, total net income of $7.3 million and $6.3 million
available to unvested restricted Federated shareholders for the
nine months ended Sept. 30, 2019 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 available to unvested shareholders of a nonpublic
consolidated subsidiary.
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
(in
thousands)
|
Sept. 30,
2019
|
Dec. 31,
2018
|
Assets
|
|
|
Cash and other
investments
|
$
|
309,005
|
|
$
|
190,490
|
|
Other current
assets
|
111,867
|
|
113,611
|
|
Intangible
assets, net, including goodwill
|
1,133,370
|
|
1,149,247
|
|
Other
long-term assets
|
199,729
|
|
90,335
|
|
Total
Assets
|
$
|
1,753,971
|
|
$
|
1,543,683
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests and Equity
|
|
|
Current
liabilities
|
$
|
194,375
|
|
$
|
181,180
|
|
Long-term
debt
|
120,000
|
|
135,000
|
|
Other
long-term liabilities
|
289,607
|
|
187,869
|
|
Redeemable
noncontrolling interests
|
199,492
|
|
182,513
|
|
Equity
excluding treasury stock
|
1,229,969
|
|
1,144,458
|
|
Treasury
stock
|
(279,472)
|
|
(287,337)
|
|
Total
Liabilities, Redeemable Noncontrolling Interests and
Equity
|
$
|
1,753,971
|
|
$
|
1,543,683
|
|
Unaudited
Changes in Long-Term Assets - By Asset Class
|
(in
millions)
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
Sept. 30,
2019
|
June 30,
2019
|
Sept. 30,
2018
|
|
Sept. 30,
2019
|
Sept. 30,
2018
|
Equity
|
|
|
|
|
|
|
Beginning
assets
|
$
|
81,999
|
|
$
|
80,245
|
|
$
|
57,973
|
|
|
$
|
72,497
|
|
$
|
62,816
|
|
Sales1
|
5,182
|
|
4,812
|
|
3,757
|
|
|
15,130
|
|
9,681
|
|
Redemptions1
|
(6,384)
|
|
(4,404)
|
|
(5,288)
|
|
|
(16,714)
|
|
(15,624)
|
|
Net sales
(redemptions)1
|
(1,202)
|
|
408
|
|
(1,531)
|
|
|
(1,584)
|
|
(5,943)
|
|
Net
exchanges
|
(11)
|
|
191
|
|
(11)
|
|
|
193
|
|
64
|
|
Acquisition-related
|
0
|
|
0
|
|
24,700
|
|
|
0
|
|
24,700
|
|
Impact of foreign
exchange2
|
(577)
|
|
4
|
|
0
|
|
|
(695)
|
|
0
|
|
Market gains and
(losses)3
|
541
|
|
1,151
|
|
3,012
|
|
|
10,339
|
|
2,506
|
|
Ending
assets
|
$
|
80,750
|
|
$
|
81,999
|
|
$
|
84,143
|
|
|
$
|
80,750
|
|
$
|
84,143
|
|
|
|
|
|
|
|
|
Fixed
Income
|
|
|
|
|
|
|
Beginning
assets
|
$
|
65,052
|
|
$
|
64,107
|
|
$
|
61,435
|
|
|
$
|
63,158
|
|
$
|
64,160
|
|
Sales1
|
4,805
|
|
5,193
|
|
5,163
|
|
|
15,414
|
|
14,826
|
|
Redemptions1
|
(5,418)
|
|
(5,181)
|
|
(4,418)
|
|
|
(16,940)
|
|
(15,946)
|
|
Net sales
(redemptions)1
|
(613)
|
|
12
|
|
745
|
|
|
(1,526)
|
|
(1,120)
|
|
Net
exchanges
|
10
|
|
(191)
|
|
2
|
|
|
(214)
|
|
(78)
|
|
Acquisition-related
|
0
|
|
0
|
|
2,732
|
|
|
0
|
|
2,732
|
|
Impact of foreign
exchange2
|
(107)
|
|
(25)
|
|
0
|
|
|
(124)
|
|
0
|
|
Market gains and
(losses)3
|
1,482
|
|
1,149
|
|
455
|
|
|
4,530
|
|
(325)
|
|
Ending
assets
|
$
|
65,824
|
|
$
|
65,052
|
|
$
|
65,369
|
|
|
$
|
65,824
|
|
$
|
65,369
|
|
|
|
|
|
|
|
|
Alternative/Private
Markets4
|
|
|
|
|
|
|
Beginning
assets
|
$
|
17,917
|
|
$
|
17,854
|
|
$
|
292
|
|
|
$
|
18,318
|
|
$
|
366
|
|
Sales1
|
384
|
|
320
|
|
757
|
|
|
1,017
|
|
813
|
|
Redemptions1
|
(813)
|
|
(302)
|
|
(674)
|
|
|
(1,973)
|
|
(785)
|
|
Net sales
(redemptions)1
|
(429)
|
|
18
|
|
83
|
|
|
(956)
|
|
28
|
|
Net
exchanges
|
(61)
|
|
(1)
|
|
(2)
|
|
|
(64)
|
|
(3)
|
|
Acquisition-related
|
0
|
|
0
|
|
18,509
|
|
|
0
|
|
18,509
|
|
Impact of foreign
exchange2
|
(560)
|
|
(435)
|
|
0
|
|
|
(608)
|
|
0
|
|
Market gains and
(losses)3
|
289
|
|
481
|
|
(261)
|
|
|
466
|
|
(279)
|
|
Ending
assets
|
$
|
17,156
|
|
$
|
17,917
|
|
$
|
18,621
|
|
|
$
|
17,156
|
|
$
|
18,621
|
|
|
|
|
|
|
|
|
Multi-asset
|
|
|
|
|
|
|
Beginning
assets
|
$
|
4,213
|
|
$
|
4,259
|
|
$
|
4,730
|
|
|
$
|
4,093
|
|
$
|
5,014
|
|
Sales1
|
65
|
|
78
|
|
120
|
|
|
247
|
|
374
|
|
Redemptions1
|
(218)
|
|
(228)
|
|
(211)
|
|
|
(687)
|
|
(675)
|
|
Net sales
(redemptions)1
|
(153)
|
|
(150)
|
|
(91)
|
|
|
(440)
|
|
(301)
|
|
Net
exchanges
|
57
|
|
0
|
|
4
|
|
|
59
|
|
2
|
|
Acquisition-related
|
0
|
|
0
|
|
45
|
|
|
0
|
|
45
|
|
Market gains and
(losses)3
|
23
|
|
104
|
|
102
|
|
|
428
|
|
30
|
|
Ending
assets
|
$
|
4,140
|
|
$
|
4,213
|
|
$
|
4,790
|
|
|
$
|
4,140
|
|
$
|
4,790
|
|
|
|
|
|
|
|
|
Total Long-term
Assets4
|
|
|
|
|
|
|
Beginning
assets
|
$
|
169,181
|
|
$
|
166,465
|
|
$
|
124,430
|
|
|
$
|
158,066
|
|
$
|
132,356
|
|
Sales1
|
10,436
|
|
10,403
|
|
9,797
|
|
|
31,808
|
|
25,694
|
|
Redemptions1
|
(12,833)
|
|
(10,115)
|
|
(10,591)
|
|
|
(36,314)
|
|
(33,030)
|
|
Net sales
(redemptions)1
|
(2,397)
|
|
288
|
|
(794)
|
|
|
(4,506)
|
|
(7,336)
|
|
Net
exchanges
|
(5)
|
|
(1)
|
|
(7)
|
|
|
(26)
|
|
(15)
|
|
Acquisition-related
|
0
|
|
0
|
|
45,986
|
|
|
0
|
|
45,986
|
|
Impact of foreign
exchange2
|
(1,244)
|
|
(456)
|
|
0
|
|
|
(1,427)
|
|
0
|
|
Market gains and
(losses)3
|
2,335
|
|
2,885
|
|
3,308
|
|
|
15,763
|
|
1,932
|
|
Ending
assets
|
$
|
167,870
|
|
$
|
169,181
|
|
$
|
172,923
|
|
|
$
|
167,870
|
|
$
|
172,923
|
|
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
impact of translating non-U.S. dollar denominated AUM into U.S.
dollars for reporting purposes. Reporting only contains
foreign exchange separately beginning with Q1 2019, previously
included in Market gains and (losses).
|
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 for periods prior to Q1 2019.
|
4)
|
Ending assets
includes $8.0 billion, $8.4 billion, and $8.4 billion at Sept. 30,
2019, June 30, 2019, and Sept. 30, 2018, respectively, of
assets managed by a nonconsolidated entity, Hermes GPE LLP, in
which Hermes holds an equity method investment.
|
Unaudited
Changes in Long-Term Assets - By Asset Class and Product
Type
|
(in
millions)
|
|
|
Quarter
Ended
|
|
Sept. 30,
2019
|
|
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
|
$
|
43,443
|
|
$
|
38,556
|
|
$
|
42,084
|
|
$
|
22,968
|
|
$
|
11,400
|
|
$
|
6,517
|
|
$
|
4,019
|
|
$
|
194
|
|
$
|
100,946
|
|
$
|
68,235
|
|
Sales
|
2,669
|
|
2,513
|
|
3,971
|
|
834
|
|
200
|
|
184
|
|
60
|
|
5
|
|
6,900
|
|
3,536
|
|
Redemptions
|
(2,991)
|
|
(3,393)
|
|
(4,136)
|
|
(1,282)
|
|
(651)
|
|
(162)
|
|
(208)
|
|
(10)
|
|
(7,986)
|
|
(4,847)
|
|
Net sales
(redemptions)
|
(322)
|
|
(880)
|
|
(165)
|
|
(448)
|
|
(451)
|
|
22
|
|
(148)
|
|
(5)
|
|
(1,086)
|
|
(1,311)
|
|
Net
exchanges
|
(11)
|
|
0
|
|
15
|
|
(5)
|
|
(61)
|
|
0
|
|
57
|
|
0
|
|
0
|
|
(5)
|
|
Impact of foreign
exchange3
|
(291)
|
|
(286)
|
|
(81)
|
|
(26)
|
|
(353)
|
|
(207)
|
|
0
|
|
0
|
|
(725)
|
|
(519)
|
|
Market gains and
(losses)4
|
(244)
|
|
785
|
|
476
|
|
1,006
|
|
291
|
|
(2)
|
|
24
|
|
(1)
|
|
547
|
|
1,788
|
|
Ending
assets
|
$
|
42,575
|
|
$
|
38,175
|
|
$
|
42,329
|
|
$
|
23,495
|
|
$
|
10,826
|
|
$
|
6,330
|
|
$
|
3,952
|
|
$
|
188
|
|
$
|
99,682
|
|
$
|
68,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Sept. 30,
2019
|
|
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
|
$
|
36,584
|
|
$
|
35,913
|
|
$
|
40,490
|
|
$
|
22,668
|
|
$
|
11,365
|
|
$
|
6,953
|
|
$
|
3,920
|
|
$
|
173
|
|
$
|
92,359
|
|
$
|
65,707
|
|
Sales
|
9,128
|
|
6,002
|
|
12,266
|
|
3,148
|
|
695
|
|
322
|
|
235
|
|
12
|
|
22,324
|
|
9,484
|
|
Redemptions
|
(8,734)
|
|
(7,980)
|
|
(12,707)
|
|
(4,233)
|
|
(1,251)
|
|
(722)
|
|
(665)
|
|
(22)
|
|
(23,357)
|
|
(12,957)
|
|
Net sales
(redemptions)
|
394
|
|
(1,978)
|
|
(441)
|
|
(1,085)
|
|
(556)
|
|
(400)
|
|
(430)
|
|
(10)
|
|
(1,033)
|
|
(3,473)
|
|
Net
exchanges
|
193
|
|
0
|
|
(184)
|
|
(30)
|
|
(64)
|
|
0
|
|
59
|
|
0
|
|
4
|
|
(30)
|
|
Impact of foreign
exchange3
|
(333)
|
|
(362)
|
|
(95)
|
|
(29)
|
|
(380)
|
|
(228)
|
|
0
|
|
0
|
|
(808)
|
|
(619)
|
|
Market gains and
(losses)4
|
5,737
|
|
4,602
|
|
2,559
|
|
1,971
|
|
461
|
|
5
|
|
403
|
|
25
|
|
9,160
|
|
6,603
|
|
Ending
assets
|
$
|
42,575
|
|
$
|
38,175
|
|
$
|
42,329
|
|
$
|
23,495
|
|
$
|
10,826
|
|
$
|
6,330
|
|
$
|
3,952
|
|
$
|
188
|
|
$
|
99,682
|
|
$
|
68,188
|
|
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)
|
Ending assets
includes $8.0 billion of assets managed by a nonconsolidated
entity, Hermes GPE LLP, in which Hermes holds an equity method
investment.
|
3)
|
Reflects the
impact of translating non-U.S. dollar denominated AUM into U.S.
dollars for reporting purposes.
|
4)
|
Reflects the
approximate changes in the fair value of the securities held by the
portfolios and, to a lesser extent, reinvested dividends,
distributions and net investment income.
|
Unaudited
Changes in Long-Term Assets - By Product Type
|
|
|
|
(in
millions)
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
Sept. 30,
2019
|
June 30,
2019
|
Sept. 30,
2018
|
|
Sept. 30,
2019
|
Sept. 30,
2018
|
Total Fund
Assets1
|
|
|
|
|
|
|
Beginning
assets
|
$
|
100,946
|
|
$
|
98,482
|
|
$
|
76,389
|
|
|
$
|
92,359
|
|
$
|
79,301
|
|
Sales
|
6,900
|
|
7,502
|
|
7,168
|
|
|
22,324
|
|
18,733
|
|
Redemptions
|
(7,986)
|
|
(7,020)
|
|
(7,405)
|
|
|
(23,357)
|
|
(21,986)
|
|
Net sales
(redemptions)
|
(1,086)
|
|
482
|
|
(237)
|
|
|
(1,033)
|
|
(3,253)
|
|
Net
exchanges
|
0
|
|
(1)
|
|
(4)
|
|
|
4
|
|
(13)
|
|
Acquisition-related
|
0
|
|
0
|
|
23,564
|
|
|
0
|
|
23,564
|
|
Impact of foreign
exchange2
|
(725)
|
|
(331)
|
|
0
|
|
|
(808)
|
|
0
|
|
Market gains and
(losses)3
|
547
|
|
2,314
|
|
1,725
|
|
|
9,160
|
|
1,838
|
|
Ending
assets
|
$
|
99,682
|
|
$
|
100,946
|
|
$
|
101,437
|
|
|
$
|
99,682
|
|
$
|
101,437
|
|
|
|
|
|
|
|
|
Total Separate
Account Assets4
|
|
|
|
|
|
|
Beginning
assets
|
$
|
68,235
|
|
$
|
67,983
|
|
$
|
48,041
|
|
|
$
|
65,707
|
|
$
|
53,055
|
|
Sales5
|
3,536
|
|
2,901
|
|
2,629
|
|
|
9,484
|
|
6,961
|
|
Redemptions5
|
(4,847)
|
|
(3,095)
|
|
(3,186)
|
|
|
(12,957)
|
|
(11,044)
|
|
Net sales
(redemptions)5
|
(1,311)
|
|
(194)
|
|
(557)
|
|
|
(3,473)
|
|
(4,083)
|
|
Net
exchanges
|
(5)
|
|
0
|
|
(3)
|
|
|
(30)
|
|
(2)
|
|
Acquisition-related
|
0
|
|
0
|
|
22,422
|
|
|
0
|
|
22,422
|
|
Impact of foreign
exchange2
|
(519)
|
|
(125)
|
|
0
|
|
|
(619)
|
|
0
|
|
Market gains and
(losses)3
|
1,788
|
|
571
|
|
1,583
|
|
|
6,603
|
|
94
|
|
Ending
assets
|
$
|
68,188
|
|
$
|
68,235
|
|
$
|
71,486
|
|
|
$
|
68,188
|
|
$
|
71,486
|
|
|
|
|
|
|
|
|
Total Long-term
Assets1,4
|
|
|
|
|
|
|
Beginning
assets
|
$
|
169,181
|
|
$
|
166,465
|
|
$
|
124,430
|
|
|
$
|
158,066
|
|
$
|
132,356
|
|
Sales5
|
10,436
|
|
10,403
|
|
9,797
|
|
|
31,808
|
|
25,694
|
|
Redemptions5
|
(12,833)
|
|
(10,115)
|
|
(10,591)
|
|
|
(36,314)
|
|
(33,030)
|
|
Net sales
(redemptions)5
|
(2,397)
|
|
288
|
|
(794)
|
|
|
(4,506)
|
|
(7,336)
|
|
Net
exchanges
|
(5)
|
|
(1)
|
|
(7)
|
|
|
(26)
|
|
(15)
|
|
Acquisition-related
|
0
|
|
0
|
|
45,986
|
|
|
0
|
|
45,986
|
|
Impact of foreign
exchange2
|
(1,244)
|
|
(456)
|
|
0
|
|
|
(1,427)
|
|
0
|
|
Market gains and
(losses)3
|
2,335
|
|
2,885
|
|
3,308
|
|
|
15,763
|
|
1,932
|
|
Ending
assets
|
$
|
167,870
|
|
$
|
169,181
|
|
$
|
172,923
|
|
|
$
|
167,870
|
|
$
|
172,923
|
|
1)
|
Includes $8.0
billion, $8.4 billion, and $8.4 billion at Sept. 30, 2019,
June 30, 2019, and Sept. 30, 2018, respectively, of assets
managed by a nonconsolidated entity, Hermes GPE LLP, in which
Hermes holds an equity method investment.
|
2)
|
Reflects the
impact of translating non-U.S. dollar denominated AUM into U.S.
dollars for reporting purposes. Reporting only contains
foreign exchange separately beginning with Q1 2019, previously
included in Market gains and (losses).
|
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 for periods prior to Q1 2019.
|
4)
|
Includes
separately managed accounts, institutional accounts, sub-advised
funds and other managed products.
|
5)
|
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)
|
Sept. 30,
2019
|
June 30,
2019
|
March 31,
2019
|
Dec. 31,
2018
|
Sept. 30,
2018
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
|
80,750
|
|
$
|
81,999
|
|
$
|
80,245
|
|
$
|
72,497
|
|
$
|
84,143
|
|
Fixed-income
|
65,824
|
|
65,052
|
|
64,107
|
|
63,158
|
|
65,369
|
|
Alternative / private
markets1
|
17,156
|
|
17,917
|
|
17,854
|
|
18,318
|
|
18,621
|
|
Multi-asset
|
4,140
|
|
4,213
|
|
4,259
|
|
4,093
|
|
4,790
|
|
Total long-term
assets
|
167,870
|
|
169,181
|
|
166,465
|
|
158,066
|
|
172,923
|
|
Money
market
|
359,292
|
|
333,066
|
|
318,413
|
|
301,794
|
|
264,233
|
|
Total Managed
Assets
|
$
|
527,162
|
|
$
|
502,247
|
|
$
|
484,878
|
|
$
|
459,860
|
|
$
|
437,156
|
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
|
42,575
|
|
$
|
43,443
|
|
$
|
42,057
|
|
$
|
36,584
|
|
$
|
43,578
|
|
Fixed-income
|
42,329
|
|
42,084
|
|
41,189
|
|
40,490
|
|
41,817
|
|
Alternative / private
markets1
|
10,826
|
|
11,400
|
|
11,164
|
|
11,365
|
|
11,457
|
|
Multi-asset
|
3,952
|
|
4,019
|
|
4,072
|
|
3,920
|
|
4,585
|
|
Total long-term
assets
|
99,682
|
|
100,946
|
|
98,482
|
|
92,359
|
|
101,437
|
|
Money
market
|
261,215
|
|
231,321
|
|
214,764
|
|
208,480
|
|
182,966
|
|
Total Fund
Assets
|
$
|
360,897
|
|
$
|
332,267
|
|
$
|
313,246
|
|
$
|
300,839
|
|
$
|
284,403
|
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
|
38,175
|
|
$
|
38,556
|
|
$
|
38,188
|
|
$
|
35,913
|
|
$
|
40,565
|
|
Fixed-income
|
23,495
|
|
22,968
|
|
22,918
|
|
22,668
|
|
23,552
|
|
Alternative / private
markets
|
6,330
|
|
6,517
|
|
6,690
|
|
6,953
|
|
7,164
|
|
Multi-asset
|
188
|
|
194
|
|
187
|
|
173
|
|
205
|
|
Total long-term
assets
|
68,188
|
|
68,235
|
|
67,983
|
|
65,707
|
|
71,486
|
|
Money
market
|
98,077
|
|
101,745
|
|
103,649
|
|
93,314
|
|
81,267
|
|
Total Separate
Account Assets
|
$
|
166,265
|
|
$
|
169,980
|
|
$
|
171,632
|
|
$
|
159,021
|
|
$
|
152,753
|
|
Total Managed
Assets
|
$
|
527,162
|
|
$
|
502,247
|
|
$
|
484,878
|
|
$
|
459,860
|
|
$
|
437,156
|
|
1)
|
Includes $8.0
billion, $8.4 billion, $8.1 billion, $8.3 billion and $8.4 billion
at Sept. 30, 2019, June 30, 2019, March 31, 2019,
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.
|
Unaudited
Average Managed Assets
|
Quarter
Ended
|
(in
millions)
|
Sept. 30,
2019
|
June 30,
2019
|
March 31,
2019
|
Dec. 31,
2018
|
Sept. 30,
2018
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
|
82,027
|
|
$
|
80,819
|
|
$
|
77,554
|
|
$
|
78,084
|
|
$
|
84,262
|
|
Fixed-income
|
65,074
|
|
64,913
|
|
64,167
|
|
63,881
|
|
64,750
|
|
Alternative / private
markets1
|
17,407
|
|
17,772
|
|
18,311
|
|
18,410
|
|
18,504
|
|
Multi-asset
|
4,167
|
|
4,225
|
|
4,225
|
|
4,449
|
|
4,805
|
|
Total long-term
assets
|
168,675
|
|
167,729
|
|
164,257
|
|
164,824
|
|
172,321
|
|
Money
market
|
349,313
|
|
325,527
|
|
311,150
|
|
278,885
|
|
261,571
|
|
Total Avg. Managed
Assets
|
$
|
517,988
|
|
$
|
493,256
|
|
$
|
475,407
|
|
$
|
443,709
|
|
$
|
433,892
|
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
|
43,077
|
|
$
|
42,571
|
|
$
|
40,217
|
|
$
|
39,871
|
|
$
|
43,473
|
|
Fixed-income
|
41,958
|
|
41,652
|
|
41,095
|
|
41,088
|
|
41,501
|
|
Alternative / private
markets1
|
11,035
|
|
11,146
|
|
11,545
|
|
11,351
|
|
11,109
|
|
Multi-asset
|
3,978
|
|
4,034
|
|
4,042
|
|
4,268
|
|
4,598
|
|
Total long-term
assets
|
100,048
|
|
99,403
|
|
96,899
|
|
96,578
|
|
100,681
|
|
Money
market
|
249,846
|
|
222,282
|
|
209,260
|
|
194,009
|
|
179,562
|
|
Total Avg. Fund
Assets
|
$
|
349,894
|
|
$
|
321,685
|
|
$
|
306,159
|
|
$
|
290,587
|
|
$
|
280,243
|
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
|
38,950
|
|
$
|
38,248
|
|
$
|
37,337
|
|
$
|
38,213
|
|
$
|
40,789
|
|
Fixed-income
|
23,116
|
|
23,261
|
|
23,072
|
|
22,793
|
|
23,249
|
|
Alternative / private
markets
|
6,372
|
|
6,626
|
|
6,766
|
|
7,059
|
|
7,395
|
|
Multi-asset
|
189
|
|
191
|
|
183
|
|
181
|
|
207
|
|
Total long-term
assets
|
68,627
|
|
68,326
|
|
67,358
|
|
68,246
|
|
71,640
|
|
Money
market
|
99,467
|
|
103,245
|
|
101,890
|
|
84,876
|
|
82,009
|
|
Total Avg.
Separate Account Assets
|
$
|
168,094
|
|
$
|
171,571
|
|
$
|
169,248
|
|
$
|
153,122
|
|
$
|
153,649
|
|
Total Avg. Managed
Assets
|
$
|
517,988
|
|
$
|
493,256
|
|
$
|
475,407
|
|
$
|
443,709
|
|
$
|
433,892
|
|
1)
|
The average
balance includes $8.1 billion, $8.1 billion, $8.4 billion, $8.3
billion and $8.2 billion for the quarters ended Sept. 30, 2019,
June 30, 2019, March 31, 2019, 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.
|
Unaudited
Average Managed Assets
|
|
Nine Months
Ended
|
(in
millions)
|
|
Sept. 30,
2019
|
|
Sept. 30,
2018
|
By Asset
Class
|
|
|
|
|
Equity
|
|
$
|
80,133
|
|
|
$
|
68,212
|
|
Fixed-income
|
|
64,718
|
|
|
63,312
|
|
Alternative / private
markets1
|
|
17,830
|
|
|
6,393
|
|
Multi-asset
|
|
4,206
|
|
|
4,869
|
|
Total long-term
assets
|
|
166,887
|
|
|
142,786
|
|
Money
market
|
|
328,664
|
|
|
263,162
|
|
Total Avg. Managed
Assets
|
|
$
|
495,551
|
|
|
$
|
405,948
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
Funds:
|
|
|
|
|
Equity
|
|
$
|
41,955
|
|
|
$
|
36,022
|
|
Fixed-income
|
|
41,568
|
|
|
40,907
|
|
Alternative / private
markets1
|
|
11,243
|
|
|
3,928
|
|
Multi-asset
|
|
4,018
|
|
|
4,650
|
|
Total long-term
assets
|
|
98,784
|
|
|
85,507
|
|
Money
market
|
|
227,130
|
|
|
179,100
|
|
Total Avg. Fund
Assets
|
|
$
|
325,914
|
|
|
$
|
264,607
|
|
Separate
Accounts:
|
|
|
|
|
Equity
|
|
$
|
38,178
|
|
|
$
|
32,190
|
|
Fixed-income
|
|
23,150
|
|
|
22,405
|
|
Alternative / private
markets
|
|
6,587
|
|
|
2,465
|
|
Multi-asset
|
|
188
|
|
|
219
|
|
Total long-term
assets
|
|
68,103
|
|
|
57,279
|
|
Money
market
|
|
101,534
|
|
|
84,062
|
|
Total Avg.
Separate Account Assets
|
|
$
|
169,637
|
|
|
$
|
141,341
|
|
Total Avg. Managed
Assets
|
|
$
|
495,551
|
|
|
$
|
405,948
|
|
1)
|
The average
balance includes $8.2 billion and $2.7 billion for the nine months
ended Sept. 30, 2019 and 2018, respectively, of assets managed by a
nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an
equity method investment.
|
View original
content:http://www.prnewswire.com/news-releases/federated-investors-inc-reports-third-quarter-2019-earnings-300945208.html
SOURCE Federated Investors, Inc.