Federated Investors Thursday reported assets under management of $355.9 billion as of June 30, down 2.1% from the prior quarter but up 1.9% from the year before.
While money market strategies, which account for roughly three-quarters of the firm's AUM, suffered outflows, President and CEO J. Christopher Donahue noted in a news release that Federated's fixed-income and equity offerings had enjoyed record gross mutual fund sales of more than $7 billion in the second quarter.
Net inflows for those long-only strategies, meanwhile, came to roughly $2 billion for the latest quarter, up from $1.4 billion for the prior quarter. For the year-earlier period, Federated's equity and fixed-income strategies suffered net outflows of just less than $300 million.
As of June 30, Federated's money market assets came to $265.5 billion, a decline of $9.2 billion, or 3.3%, from the prior quarter and marginally down from $265.7 billion the year before.
Equity assets came to $33.3 billion, down 2.6% from the prior quarter, amid market-related declines of $761 million, but up 5.9% from the year before.
Fixed-income assets reached a record $49 billion, up 5.9% from the prior quarter amid net inflows of $2.1 billion, and up 15% from the year before.
The liquidation portfolios of distressed fixed income Federated has been managing since the financial crisis, meanwhile, ended the quarter at $8.1 billion, down from $8.6 billion at the close of the prior quarter and $10 billion the year before.
Federated's news release noted that a decline in the fee waivers the firm has had to implement to ensure that clients in its money market vehicles were able to enjoy positive returns in an extremely low interest-rate environment helped Federated log gains in revenues for the latest quarter.
The company reported $70.3 million in fee waivers for the latest quarter, down from $80.4 million for the prior quarter and $79.4 million for the year-earlier quarter.
Revenue, meanwhile, came to $232.1 million, up 0.8% from the prior quarter and up 2.8% from the year before.
Net income for the quarter came to $40.4 million, down 4.5% from the prior quarter and 4.7% from the year before.