Federated Investors reported a 10% decline in assets under management for the first quarter to about $350 billion, according to a news release Thursday.
Assets also were down 14% for the year ended March 31, according to the release.
The decline came from the firm’s money market funds, according to the release. Total money market assets were $272.3 billion as of March 31, a decrease of 13% for the quarter and 24% for the year. Money market mutual fund assets were $240.2 billion, down 15% for the quarter and down 27% for the year.
The decline in money market assets was spurred by growing confidence in the economy, as investors moved away from the strategies to reinvest in other asset classes, the release said.
Fixed-income assets stood at $35.5 billion at the end of the quarter, which was up 5% for the quarter and up 42% for the year. Federated report fixed-income inflows of $1.2 billion in the quarter, with assets going to the Federated Total Return Bond fund as well as short- and ultrashort-duration bond funds.
“Federated continued to see strong flows into our fixed-income mutual funds, with gross sales topping $4.5 billion for the quarter,” J. Christopher Donahue, president and CEO, said in the release. “In addition, Federated’s consistent performance over the full market cycle has allowed the company to compete for and win larger institutional fixed-income mandates over the past several quarters.” No client names were mentioned in the release.
Equity assets stood at $30.1 billion, an increase of 1% for the quarter and a rise of 29% for the year, the release said.