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Federated reported YTD 2009 EPS of $0.86 compared to $1.08 for the same period in 2008. For the six months ended June 30, 2009, income from continuing operations was $88.4 million compared to $111.0 million for the same period in 2008.
Federated's total managed assets were $401.8 billion at June 30, 2009, up $68.3 billion or 20 percent from $333.5 billion at June 30, 2008 and down $7.4 billion or 2 percent from $409.2 billion reported at March 31, 2009. Average managed assets for Q2 2009 were $414.4 billion, up $71.1 billion or 21 percent from $343.3 billion reported for Q2 2008 and up $2.7 billion from $411.7 billion reported for Q1 2009.
"Investor confidence in Federated's diverse line of equity and bond products drove strong mutual fund sales in the second quarter," said J. Christopher Donahue, president and chief executive officer. "Federated's fixed-income fund net sales surged to $2.6 billion in the quarter, while Federated's equity fund flows were positive for the quarter."
Federated's board of directors declared a quarterly dividend of $0.24 per share. The dividend is payable on August 14, 2009 to shareholders of record as of August 10, 2009. During Q2 2009, Federated purchased 238,400 shares of Federated class B common stock for $5.8 million.
Federated's fixed-income assets were $28.7 billion at June 30, 2009, up $5.7 billion or 25 percent from $23.0 billion at June 30, 2008 and up $3.7 billion or 15 percent from $25.0 billion at March 31, 2009. Federated had strong net inflows of $2.6 billion into its bond funds during Q2 2009 compared to $1.1 billion in Q1 2009. Net sales were driven by strong flows into ultrashort bond funds and intermediate-term bond funds including Federated Total Return Bond Fund and Federated Total Return Government Bond Fund.
Federated's equity assets were $26.2 billion at June 30, 2009, down $11.1 billion or 30 percent from $37.3 billion at June 30, 2008 and up $2.8 billion or 12 percent from $23.4 billion at March 31, 2009. During the second quarter of 2009, Federated's net flows into equity funds turned positive with $26 million in net sales. Flows were driven by sales in Federated Market Opportunity Fund and Federated Prudent Bear Fund, both of which invest in alternative-asset classes, and Federated Strategic Value Fund, a dividend-focused fund.
Money market assets in both funds and separate accounts were $346.4 billion at June 30, 2009, up $75.3 billion or 28 percent from $271.1 billion at June 30, 2008 and down $13.7 billion or 4 percent from $360.1 billion at March 31, 2009. Money market mutual fund assets were $312.8 billion at June 30, 2009, up $72.2 billion or 30 percent from $240.6 billion at June 30, 2008 and down $16.0 billion or 5 percent from $328.8 billion at March 31, 2009.
Financial Summary
Q2 2009 vs. Q2 2008
For Q2 2009, revenue was $306.9 million compared to $310.3 million for the same quarter last year. The decrease in revenue primarily reflects decreases in revenue of $41.2 million from lower average equity managed assets excluding the assets acquired from Clover Capital and Prudent Bear in Q4 2008 and $17.0 million in fee waivers related to certain money market funds in order to maintain positive or zero net yields. These decreases in revenue were partially offset by increases of $43.5 million from higher average money market managed assets, $7.4 million from higher average equity and fixed-income managed assets due to the Q4 2008 Clover Capital and Prudent Bear acquisitions and $2.3 million from higher remaining average fixed-income managed assets. The aforementioned fee waivers were offset by a related reduction in marketing and distribution expenses of $11.4 million such that the net impact on operating income was a decrease of $5.6 million.
Fee waivers to produce positive or zero net yields may increase and such increases could be significant. The amount of these waivers will be determined by a variety of factors including available yields on instruments held by the money market funds, changes in assets within money market funds, actions by the Federal Reserve and the U.S. Department of the Treasury, changes in the mix of money market customer assets, changes in expenses of the money market funds and the willingness of the fund adviser to continue these waivers.
For Q2 2009, Federated derived 69 percent of its revenue from money market assets, 20 percent from equity assets and 11 percent from fixed-income assets.
Operating expenses for Q2 2009 remained relatively flat as compared to Q2 2008. Operating expenses for Q2 2009 reflect a $4.6 million increase in compensation and related expenses primarily due to increased headcount related to the recent Clover Capital and Prudent Bear acquisitions. Marketing and distribution expenses increased $3.7 million as compared to Q2 2008 due to higher money market managed assets partially offset by the aforementioned reduction associated with maintaining positive or zero net yields and lower average equity managed assets. In addition, Q2 2009 operating expenses included a decrease in amortization of deferred sales commissions of $3.8 million primarily due to lower average B-share assets.
Q2 2009 vs. Q1 2009
Compared to the prior quarter, revenue decreased by $3.7 million or 1 percent. Decreases in revenue of $8.3 million primarily from lower average money market fund assets were partially offset by a $3.3 million increase from higher average fixed-income managed assets and a $2.1 million increase from higher average equity managed assets. In addition, revenue decreased by $7.3 million from higher fee waivers on certain money market funds in order to maintain positive or zero net yields. This increase in fee waivers was offset by a related decrease in marketing and distribution expenses of $6.8 million such that the net impact on operating income was a decrease of $0.5 million. The increase in fee waivers was partially offset by a $4.2 million decrease in fee waivers for other competitive reasons as well as an increase in revenue of $3.7 million due to one extra day in Q2 2009 as compared to Q1 2009.
Compared to Q1 2009, operating expenses decreased by $31.8 million or 13 percent. Changes from the prior period include a $19.8 million decrease in expenses due to the non-cash impairment charges recorded in Q1 2009 and an $8.2 million decrease in marketing and distribution expenses primarily from the aforementioned increased reductions associated with maintaining positive or zero net yields. In addition, compensation and related expenses decreased by $2.6 million primarily due to the $1.5 million non-cash share-based compensation expense adjustment recorded in Q1 2009.
Nonoperating expenses decreased $1.7 million compared to the prior quarter due mainly to higher investment income.
YTD 2009 vs. YTD 2008
Revenue for the first half of 2009 increased slightly to $617.5 million compared to $616.0 million for the same period last year. Increases in revenue of $103.4 million from higher average money market managed assets and $15.1 million from higher average equity and fixed-income managed assets due to the Q4 2008 Clover Capital and Prudent Bear acquisitions were partially offset by a $90.2 million decrease from lower remaining average equity managed assets. In addition, there was $26.6 million in fee waivers on certain money market funds in order to maintain positive or zero net yields. These fee waivers were offset by a related reduction in marketing and distribution expenses of $15.9 million such that the net impact on operating income was a decrease of $10.7 million.
For YTD 2009, Federated derived 70 percent of its revenue from money market assets, 20 percent from equity assets and 10 percent from fixed-income assets.
Operating expenses for the first half of 2009 increased by $35.6 million or 8 percent. The increase was attributable to the $19.8 million in non-cash impairment charges recorded in Q1 2009, an $18.4 million increase in marketing and distribution expense primarily from higher average money market managed assets partially offset by the aforementioned reduction associated with maintaining positive or zero net yields and lower average equity managed assets and a $9.4 million increase in compensation and related expense primarily related to the Clover Capital and Prudent Bear acquisitions, partially offset by a decrease in amortization of deferred sales commissions of $8.3 million primarily due to lower average B-share assets.
Nonoperating expenses for the first six months of 2009 increased $2.4 million compared to the first six months of 2008 primarily due to an increase in recourse debt expense.
Federated's level of business activity and financial results are dependent upon many factors including market conditions, investment performance and investor behavior. These factors and others including asset levels, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers and expenses can impact Federated's activity levels and financial results significantly. Risk factors and uncertainties that can influence Federated's financial results are discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission.
Federated will host an earnings conference call at 9 a.m. Eastern on Friday, July 24, 2009. 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 for the teleconference. The call may also be accessed in real time on the Internet via the About Us section of http://FederatedInvestors.com. A replay will be available after 12:30 p.m. and until August 1, 2009 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 327426.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $401.8 billion in assets as of June 30, 2009. With 155 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 5,300 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top 2 percent of money market fund managers in the industry, the top 6 percent of fixed-income fund managers and the top 8 percent of equity fund managers(1). For more information, visit http://FederatedInvestors.com.
(1) Strategic Insight, May 31, 2009. Based on assets under management in open-end funds.
Federated Securities Corp. is distributor of the Federated funds.
Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling and Federated MDTA LLC, each a registered investment advisor.
Certain statements in this press release, such as those related to the level of fee waivers incurred by the company, asset flows, and asset and revenue levels, constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the ability of the company to predict the level of fee waivers in future quarters, which could vary significantly depending on a variety of factors identified above, and include the ability of the company to sustain asset flows, and asset and revenue levels, which could vary significantly depending on market conditions, investment performance and investor behavior. Other risks and uncertainties also include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
Unaudited Condensed Consolidated Statements of Income(1)
(in thousands, except per share data)
Quarter % Change Quarter % Change
Ended Q2 2008 Ended Q1 2009
June 30, to March 31, to
2009 2008 Q2 2009 2009 Q2 2009
Revenue
Investment advisory
fees, net $193,757 $198,050 (2)% $190,469 2%
Administrative service
fees, net 67,636 54,435 24 67,646 (0)
Other service fees, net 44,586 56,714 (21) 51,332 (13)
Other, net 915 1,107 (17) 1,196 (23)
Total Revenue 306,894 310,306 (1) 310,643 (1)
Operating Expenses
Compensation and related 63,609 59,022 8 66,227 (4)
General and administrative
Marketing and
distribution 114,138 110,430 3 122,306 (7)
Professional service
fees 9,777 11,501 (15) 10,007 (2)
Systems and
communications 6,331 5,998 6 6,428 (2)
Office and occupancy 5,647 6,336 (11) 6,666 (15)
Advertising and
promotional 3,059 4,032 (24) 2,650 15
Travel and related 2,872 4,012 (28) 2,443 18
Other 4,455 4,402 1 8,264 (46)
Total general and
administrative 146,279 146,711 (0) 158,764 (8)
Amortization of
deferred sales
commissions 4,960 8,801 (44) 4,873 2
Intangible asset
amortization and
impairment 3,981 4,559 (13) 20,730 (81)
Total Operating
Expenses 218,829 219,093 (0) 250,594 (13)
Operating Income 88,065 91,213 (3) 60,049 47
Nonoperating Income (Expenses)
Investment income
(loss), net 1,210 897 35 (402) 401
Debt expense--recourse (1,146) (108) 961 (1,112) 3
Debt expense--nonrecourse (368) (737) (50) (432) (15)
Other, net 34 (155) 122 20 70
Total Nonoperating
Expenses, net (270) (103) 162 (1,926) (86)
Income from continuing
operations before
income taxes 87,795 91,110 (4) 58,123 51
Income tax provision 31,712 33,873 (6) 20,654 54
Income from continuing
operations including
noncontrolling interests
in subsidiaries 56,083 57,237 (2) 37,469 50
Discontinued operations,
net of tax - 2,808 (100) - -
Net income including
noncontrolling interests
in subsidiaries 56,083 60,045 (7) 37,469 50
Less: Net income
attributable to
noncontrolling
interests in
subsidiaries 2,809 2,020 39 2,334 20
Net Income $53,274 $58,025 (8)% $35,135 52%
Amounts Attributable to
Federated
Income from continuing
operations $53,274 $55,217 (4)% $35,135 52%
Discontinued
operations, net of tax - 2,808 (100) - -
Net Income $53,274 $58,025 (8)% $35,135 52%
Earnings Per Share-Basic(2)
Income from
continuing
operations $0.52 $0.55 (5)% $0.34 53%
Income from
discontinued
operations - 0.03 (100) - -
Net income(3) $0.52 $0.57 (9)% $0.34 53%
Earnings Per Share-Diluted(2)
Income from
continuing
operations $0.52 $0.54 (4)% $0.34 53%
Income from
discontinued
operations - 0.03 (100) - -
Net income $0.52 $0.57 (9)% $0.34 53%
Weighted-average
shares outstanding
Basic 100,041 99,347 99,927
Diluted 100,164 100,383 100,035
Dividends declared
per share $0.24 $0.24 $0.24
1) On Jan. 1, 2009, Federated adopted Statement of Financial Accounting
Standards No. 160, "Noncontrolling Interests in Consolidated
Financial Statements - an amendment of ARB No. 51." Its provisions
require that minority interest be renamed noncontrolling interest
and that companies present a consolidated net income that includes
the amount attributable to noncontrolling interests for all periods
presented.
2) On Jan. 1, 2009, Federated adopted Financial Accounting Standards
Board Staff Position Emerging Issues Task Force No. 03-6-1
"Determining Whether Instruments Granted in Share-Based Payment
Transactions Are Participating Securities." Under this standard,
unvested share-based payment awards that receive non-forfeitable
dividend rights are considered participating securities and are now
required to be included in the computation of earnings per share
under the "two-class method." As a result current and prior periods
have been adjusted to reflect this new standard.
3) May not sum due to rounding.
Unaudited Condensed Consolidated Statements of Income(1)
(in thousands, except per share data)
Six Months Ended June 30,
2009 2008 % Change
Revenue
Investment advisory fees, net $384,226 $393,045 (2)%
Administrative service fees, net 135,282 106,015 28
Other service fees, net 95,918 114,431 (16)
Other, net 2,111 2,508 (16)
Total Revenue 617,537 615,999 0
Operating Expenses
Compensation and related 129,836 120,485 8
General and administrative
Marketing and distribution 236,444 218,057 8
Professional service fees 19,784 20,098 (2)
Systems and communications 12,759 11,931 7
Office and occupancy 12,314 12,447 (1)
Advertising and promotional 5,709 7,708 (26)
Travel and related 5,315 6,937 (23)
Other 12,719 8,713 46
Total general and administrative 305,044 285,891 7
Amortization of deferred sales
commissions 9,832 18,162 (46)
Intangible asset amortization and
impairment 24,712 9,304 166
Total Operating Expenses 469,424 433,842 8
Operating Income 148,113 182,157 (19)
Nonoperating Income (Expenses)
Investment income, net 809 2,175 (63)
Debt expense--recourse (2,258) (204) 1,007
Debt expense--nonrecourse (800) (1,610) (50)
Other, net 54 (204) 126
Total Nonoperating (Expenses)
Income, net (2,195) 157 (1,498)
Income from continuing operations
before income taxes 145,918 182,314 (20)
Income tax provision 52,366 67,873 (23)
Income from continuing operations
including noncontrolling interests
in subsidiaries 93,552 114,441 (18)
Discontinued operations, net of tax - 2,808 (100)
Net Income including noncontrolling
interests in subsidiaries 93,552 117,249 (20)
Less: Net income attributable
to the noncontrolling interest
in subsidiaries 5,143 3,406 51
Net income $88,409 $113,843 (22)%
Amounts Attributable to Federated
Income from continuing operations $88,409 $111,035 (20)%
Discontinued operations, net of tax - 2,808 (100)
Net Income $88,409 $113,843 (22)%
Earnings Per Share-Basic(2)
Income from continuing operations $0.86 $1.10 (22)%
Income from discontinued
operations - 0.03 (100)
Net income(3) $0.86 $1.12 (23)%
Earnings Per Share-Diluted(2)
Income from continuing operations $0.86 $1.08 (20)%
Income from discontinued
operations - 0.03 (100)
Net income $0.86 $1.11 (23)%
Weighted-average shares outstanding
Basic 99,985 99,580
Diluted 100,101 100,760
Dividends declared per share $0.48 $0.45
1) On Jan. 1, 2009, Federated adopted Statement of Financial Accounting
Standards No. 160, "Noncontrolling Interests in Consolidated
Financial Statements - an amendment of ARB No. 51." Its provisions
require that minority interest be renamed noncontrolling interest
and that companies present a consolidated net income that includes
the amount attributable to noncontrolling interests for all periods
presented.
2) On Jan. 1, 2009, Federated adopted Financial Accounting Standards
Board Staff Position Emerging Issues Task Force No. 03-6-1
"Determining Whether Instruments Granted in Share-Based Payment
Transactions Are Participating Securities." Under this standard,
unvested share-based payment awards that receive non-forfeitable
dividend rights are considered participating securities and are now
required to be included in the computation of earnings per share
under the "two-class method." As a result current and prior periods
have been adjusted to reflect this new standard.
3) May not sum due to rounding.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
June 30, Dec. 31,
2009 2008
Assets
Cash and other short-term investments $63,978 $58,647
Other current assets 57,859 58,185
Deferred sales commissions, net 21,436 30,261
Intangible assets, net and goodwill 651,973 657,321
Other long-term assets 40,043 42,196
Total Assets $835,289 $846,610
Liabilities and Equity
Current liabilities $188,228 $217,838
Long-term debt -- recourse 115,500 126,000
Long-term debt -- nonrecourse 20,757 30,497
Other long-term liabilities 36,678 47,705
Equity excluding treasury stock(1) 1,267,819 1,229,051
Treasury stock (793,693) (804,481)
Total Liabilities and Equity $835,289 $846,610
1) Noncontrolling or minority interest was previously included in other
long-term liabilities, but is now included in Equity excluding
treasury stock. On Jan. 1, 2009, Federated adopted Statement of
Financial Accounting Standards No. 160, "Noncontrolling Interests in
Consolidated Financial Statements - an amendment of ARB No. 51."
Its provisions require that minority interest be renamed
noncontrolling interest and companies present it as a component of
equity for all periods presented.
Changes in Equity and Fixed-Income Fund Managed Assets
(in millions)
Quarter Ended Six Months Ended
June 30, June 30, March 31, June 30, June 30,
2009 2008 2009 2009 2008
Equity Funds
Beginning assets $15,902 $25,880 $17,562 $17,562 $29,145
Sales 1,177 1,347 1,325 2,502 2,949
Redemptions (1,151) (1,529) (1,591) (2,742) (3,422)
Net sales
(redemptions) 26 (182) (266) (240) (473)
Net exchanges 8 (18) (75) (67) (95)
Acquisition related 0 42 0 0 42
Market gains and
losses/
reinvestments(1) 2,030 (153) (1,319) 711 (3,050)
Ending assets $17,966 $25,569 $15,902 $17,966 $25,569
Fixed-Income Funds
Beginning assets $20,752 $18,339 $19,321 $19,321 $17,943
Sales 4,597 2,337 3,151 7,748 4,155
Redemptions (1,997) (1,530) (2,010) (4,007) (3,085)
Net sales 2,600 807 1,141 3,741 1,070
Net exchanges 6 1 42 48 54
Market gains and
losses/
reinvestments(1) 742 (82) 248 990 (2)
Ending assets $24,100 $19,065 $20,752 $24,100 $19,065
1) Reflects changes in the market value of the securities held by the
funds and, to a lesser extent, reinvested dividends, distributions,
net investment income and the impact of changes in foreign exchange
rates.
Changes in Equity and Fixed-Income Separate Account Assets(2)
(in millions)
Quarter Ended Six Months Ended
June 30, June 30, March 31, June 30, June 30,
2009 2008 2009 2009 2008
Equity Separate Accounts
Beginning assets $7,509 $11,638 $9,099 $9,099 $13,017
Net customer
flows(3) (204) 209 (561) (765) (195)
Market gains and
losses/
reinvestments(4) 940 (135) (1,029) (89) (1,110)
Ending assets $8,245 $11,712 $7,509 $8,245 $11,712
Fixed-Income Separate
Accounts
Beginning assets $4,219 $3,987 $4,165 $4,165 $3,754
Net customer
flows(3) 74 (14) 7 81 57
Market gains and
losses/
reinvestments(4) 290 (49) 47 337 113
Ending assets $4,583 $3,924 $4,219 $4,583 $3,924
2) Includes separately managed accounts, institutional accounts and
sub-advised funds (both variable annuity and other) and other managed
products.. Flows for liquidation portfolios have been removed from
Changes in Equity and Fixed-Income Separate Account Assets and are
detailed on the following page.
3) For certain accounts, Net customer flows are calculated as the
remaining difference between beginning and ending assets after the
calculation of Market gains and losses/reinvestments.
4) Reflects the approximate changes in the market value of the
securities held in the portfolios, and, to a lesser extent,
reinvested dividends, distributions, net investment income and the
impact of changes in foreign exchange rates.
Changes in Liquidation Portfolios(1)
(in millions)
Quarter Ended Six Months Ended
June 30, June 30, March 31, June 30, June 30,
2009 2008 2009 2009 2008
Liquidation Portfolios
Beginning assets $700 $1,090 $1,505 $1,505 $1,127
Net customer
flows(2) (151) 1,089 (802) (953) 1,078
Market gains and
losses/
reinvestments(3) 7 (96) (3) 4 (122)
Ending assets $556 $2,083 $700 $556 $2,083
1) Federated added liquidation portfolios as an asset category beginning
in Q1 2009. Liquidation portfolios include portfolios of distressed
fixed-income securities and liquidating collateralized debt
obligation (CDO) products. In the distressed security category,
Federated has been retained by a third party to manage these assets
through an orderly liquidation process that will generally occur over
a multi-year period. In the case of liquidating CDOs, the CDO
structure has unwound earlier than expected due to events of default
related to certain distressed securities in the portfolio. The new
category was established because the assets and related cash flows
from these portfolios are significantly different than those of
traditional separate account mandates.
2) For certain accounts, Net customer flows are calculated as the
remaining difference between beginning and ending assets after the
calculation of Market gains and losses/reinvestments.
3) Reflects the approximate changes in the market value of the
securities held in the portfolios, and, to a lesser extent,
reinvested dividends, distributions, net investment income and the
impact of changes in foreign exchange rates.
(in millions)
MANAGED ASSETS June 30, March 31, Dec. 31, Sept. 30, June 30,
2009 2009 2008 2008 2008
By Asset Class
Equity $26,211 $23,411 $26,661 $31,651 $37,281
Fixed-income 28,683 24,971 23,486 22,738 22,989
Money market 346,354 360,127 355,658 287,836 271,131
Liquidation
portfolios(1) 556 700 1,505 1,777 2,083
Total Managed
Assets $401,804 $409,209 $407,310 $344,002 $333,484
By Product Type
Mutual Funds:
Equity $17,966 $15,902 $17,562 $21,583 $25,569
Fixed-income 24,100 20,752 19,321 19,136 19,065
Money market 312,808 328,780 327,267 259,172 240,646
Total Fund Assets $354,874 $365,434 $364,150 $299,891 $285,280
Separate Accounts:
Equity $8,245 $7,509 $9,099 $10,068 $11,712
Fixed-income 4,583 4,219 4,165 3,602 3,924
Money market 33,546 31,347 28,391 28,664 30,485
Total Separate
Accounts $46,374 $43,075 $41,655 $42,334 $46,121
Total Liquidation
Portfolios(1) $556 $700 $1,505 $1,777 $2,083
Total Managed
Assets $401,804 $409,209 $407,310 $344,002 $333,484
AVERAGE MANAGED ASSETS Quarter Ended
June 30, March 31, Dec. 31, Sept. 30, June 30,
2009 2009 2008 2008 2008
By Asset Class
Equity $25,287 $24,219 $24,870 $35,136 $38,974
Fixed-income 26,978 24,218 22,546 23,143 22,709
Money market 361,502 362,269 320,684 274,840 279,776
Liquidation
portfolios(1) 637 975 1,650 1,944 1,816
Total Avg. Assets $414,404 $411,681 $369,750 $335,063 $343,275
By Product Type
Mutual Funds:
Equity $17,220 $16,240 $16,904 $24,180 $26,762
Fixed-income 22,545 20,009 18,674 19,347 18,672
Money market 326,280 330,294 293,428 245,304 246,868
Total Avg. Fund
Assets $366,045 $366,543 $329,006 $288,831 $292,302
Separate Accounts:
Equity $8,067 $7,979 $7,966 $10,956 $12,212
Fixed-income 4,433 4,209 3,872 3,796 4,037
Money market 35,222 31,975 27,256 29,536 32,908
Total Avg.
Separate Accts. $47,722 $44,163 $39,094 $44,288 $49,157
Total Avg.
Liquidation
Portfolios(1) $637 $975 $1,650 $1,944 $1,816
Total Avg. Assets $414,404 $411,681 $369,750 $335,063 $343,275
1) Federated added liquidation portfolios as an asset category
beginning in Q1 2009. Liquidation portfolios include portfolios of
distressed fixed-income securities and liquidating collateralized
debt obligation (CDO) products. In the distressed security category,
Federated has been retained by a third party to manage these assets
through an orderly liquidation process that will generally occur over
a multi-year period. In the case of liquidating CDOs, the CDO
structure has unwound earlier than expected due to events of default
related to certain distressed securities in the portfolio. The new
category was established because the assets and related cash flows
from these portfolios are significantly different than those of
traditional separate account mandates.
Federated discontinued reporting administered assets as of June 30, 2009
as they are no longer a material source of revenue for the firm.
SOURCE Federated Investors, Inc.
http://FederatedInvestors.com
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The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
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