Federated Investors reported assets under management of $351.7 billion as of Sept. 30, up 0.7% from the prior quarter and up 3% from the year before.
A search for safety as market volatility spiked and equity markets tumbled during the quarter lifted the company’s money market AUM to $271.7 billion, up 2.3% from the prior quarter and 4.1% higher than the year before.
Federated’s equity AUM, meanwhile, stood at $28 billion, down 11% from the prior quarter and off 3.8% from the year before. The company’s equity strategies garnered $560 million in net flows with another $463 million in funds acquired during the quarter, but those gains were offset by market-related declines of $4.4 billion.
The company’s fixed-income AUM came to $42.9 billion, up 1.2% from the prior quarter and up 6.7% from the year before, with net flows contributing $71 million to the total. A liquidation portfolio of distressed fixed-income assets stood at $9.1 billion as of Sept. 30, down 9% from the previous quarter and down 18% from the year-earlier quarter.
Net income for the quarter came to $38.3 million, down 10% from the prior quarter and off 11% from the year before.
Revenue, meanwhile, stood at $214 million, off 5% from the prior quarter and down 12% from the year before.
A Federated news release pointed to an increase in fee waivers the company extended to ensure money market clients could enjoy positive returns in the prevailing environment of rock-bottom interest rates as a prime factor behind the decline in revenue. For the quarter, fee waivers amounted to $88.9 million, up from $79.4 million for the previous quarter and $53.8 million for the year-earlier quarter.