Federated Investors reported $459.9 billion in assets under management as of Dec. 31, up 5% from Sept. 30 and up 16% from a year earlier, the company said in its fourth-quarter earnings statement released Thursday.
The asset growth was attributed to the Federal Reserve raising short-term interest rates four times last year, as "Federated's wide range of liquidity products offered competitive yields for investors seeking cash-management solutions," said J. Christopher Donahue, president and CEO, in the earnings statement. Also, "Federated's money market assets increased nearly $38 billion in the fourth quarter, crossing the $300 billion threshold," Mr. Donahue added.
Money market assets totaled $301.8 billion as of Dec. 31, up 14% from both Sept. 30 and a year earlier.
Federated's equity AUM totaled $72.5 billion as of Dec. 31, down 14% from Sept. 30 but up 15% from Dec. 31, 2017.
Federated experienced equity net outflows of $2.5 billion during the fourth quarter, compared to net outflows of $1.5 billion for the third quarter and net outflows of $737 million for the fourth quarter of 2017.