Federated Investors on Thursday reported $336.8 billion in client assets under management as of June 30, down 3.7% from the prior quarter and off 16% from the year before.
Money market assets, which rose sharply when equity markets were plunging in 2008 and early 2009, continued to decline during the latest quarter as investors returned more money to riskier asset classes. At the end of June, Federated’s money market assets stood at $260.5 billion, down 4.3% from the prior quarter and 25% lower than the year-earlier quarter.
By contrast, the firm’s fixed-income assets rose to $38 billion, up 7% from the prior quarter and up 33% from the year before. The latest gains were fueled by $2.1 billion in net institutional and retail inflows.
Equity assets ended the latest quarter at $26.8 billion, down 11% from the prior quarter but up 2.3% from the year before. Net outflows of $790 million and market-related declines of $2.461 billion contributed to the fall.
The company reported net income of $47.7 million, up 13% from the prior quarter but down 11% from the year before.
Revenues, meanwhile, came to $231.5 million, down 1% from the prior quarter and off 25% from the year before. In its earnings release, Federated said a $41.3 million increase in voluntary fee waivers from the year before, to ensure that certain money market funds maintained a positive or zero net yield, contributed to the decline.