Federated reported $344 billion in assets under management, up 25% from the year before, as strong flows into its money market funds helped offset market-related declines in its equity assets.
Client money in Federated's money market offerings rose $16.7 billion, or 6%, to $287.8 billion from the second quarter and by $77.9 billion, or 37%, from the year before, as market volatility prompted investors to seek out safe harbors, the company said in a news release. That helped offset a 15% quarterly drop in the firm's equity assets to $31.7 billion, off 27% from the year before. The firm's fixed-income assets, meanwhile, came to $24.5 billion, down 2% from the prior quarter but up 8% from the year before.
Federated reported net income of $56.2 million, down 3% from both the prior quarter and the year-earlier quarter. Revenue, meanwhile, came to $305.9 million, down 1% from the prior quarter but up 7% from the year before.
T. Rowe Price Group reported AUM of $345 billion, off 14% from the year before. In a news release, the company said net client inflows of $1.7 billion in the third quarter were overwhelmed by a $44.4 billion drop in assets resulting from market declines. That marked a reversal from the second quarter, when market-related gains of $1 billion added to net client inflows of $8.1 billion.
Net income in the quarter totaled $152.8 million, down 5.7% from the second quarter and down 13% from the year before. Revenue came to $554.8 million, down 5.5% from the prior quarter and off 2.8% from the year before.
James A.C. Kennedy, the firm's CEO and president, said in the release that the difficult outlook for markets and the economy should leave T. Rowe's earnings under pressure "into 2009," but he noted that the bulk of the firm's portfolio managers continue to beat their benchmarks and will take advantage of the opportunities the downturn presents to fuel future performance gains.