Federated Investors on Thursday reported $349.4 billion in assets under management as of June 30, down 1.5% from the prior quarter but up 3.6% from the year before.
For the quarter, the company’s money market assets in both mutual funds and separate accounts came to $265.7 billion, down $5.4 billion from the prior quarter but up $5.2 billion from the year before.
Federated fixed-income assets, meanwhile, came to $42.4 billion, up 1.4% from the previous quarter and 12% higher than the year before. The company’s equity assets stood at $31.4 billion, down 0.6% from the prior quarter but up 17% from the year before.
The company reported net equity outflows for the latest quarter of $416 million, up from outflows of $379 million for the prior quarter but an improvement from year-earlier outflows of $790 million. While Federated’s bond strategies garnered net inflows of $125 million, that gain was down from inflows of $706 million and $2.1 billion respectively for the prior quarter and the year-earlier quarter.
In its earnings announcement, released after the close of U.S. equity markets Thursday, the company said a rise in fee waivers to $79.4 million for the latest quarter, in an effort to maintain positive yields for money market clients in a near-zero interest-rate environment, weighed on both revenues and profits for the reporting period. The second-quarter fee waivers was up $16 million from the prior quarter and $21.2 million higher than the year-earlier quarter.
The company reported net income of $42.4 million, up 28% from the prior quarter, when a non-recurring legal expense depressed earnings, but down 11% from the year-earlier quarter.
Total revenues, meanwhile, came to $225.8 million, down 5.5% from the prior quarter and down 2.5% from the year before.