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Money Management

Federated Investors’ assets fall 3.2% in quarter

Federated Investors (FII) reported $379.7 billion in assets under management as of June 30, down 3.2% from March 31 but up 5.4% from a year earlier, the company said in its second-quarter earnings statement released Thursday.

Federated's equity assets fell to $62.9 billion as of June 30, down 1.7% from the end of the prior quarter and down 4.4% from June 30, 2017. Net equity outflows during the second quarter totaled $2.5 billion, compared to $2.2 billion for the first quarter and $966 million for the second quarter of 2017.

The money manager's fixed-income AUM also dropped, to $61.5 billion as of June 30, down 1.3% from March 31 but up 17.1% from a year earlier. Net fixed-income outflows for the second quarter totaled $179 million, compared to net outflows of $1.7 billion for the quarter ended March 31 and net inflows of $14 million for the second quarter of 2017.

Money market assets under management as of June 30 totaled $255.2 billion, down 4% from March 31 and up 5.4% from June 30, 2017.

Total revenue for the second quarter was $256 million, down 3% from the prior quarter and down 6.2% from the year-earlier quarter. Net income for the second quarter was $38.8 million vs. $60.3 million during the first quarter and $53.5 million during the second quarter of 2017.

In April, Federated announced it agreed to acquire a 60% stake in money manager Hermes Fund Managers from BT Pension Scheme, London. Federated announced on July 2 it had completed the acquisition. Hermes has 33.6 billion ($44.1 billion) in assets under management.