A press release entitled, "Federated Investors, Inc. Reports Second Quarter 2012 Earnings," says, "Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.39 for the quarter ended June 30, 2012 as compared to $0.41 for the same quarter last year. Net income was $40.4 million for Q2 2012 compared to $42.4 million for Q2 2011. Federated's total managed assets were $355.9 billion at June 30, 2012, up $6.5 billion or 2 percent from $349.4 billion at June 30, 2011 and down $7.7 billion or 2 percent from $363.6 billion reported at March 31, 2012.... Money market assets in both funds and separate accounts were $265.5 billion at June 30, 2012, down slightly from $265.7 billion at June 30, 2011 and down $9.2 billion or 3 percent from $274.7 billion at March 31, 2012. Money market mutual fund assets were $238.6 billion at June 30, 2012, up $2.5 billion or 1 percent from $236.1 billion at June 30, 2011 and down $6.6 billion or 3 percent from $245.2 billion at March 31, 2012."
It continues, "Revenue increased by $6.4 million or 3 percent due primarily to a decrease of $9.1 million in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields and due to an increase in average fixed-income assets. The reduction in fee waivers was primarily the result of improved yields available on securities held by money market funds.... Federated derived 52 percent of its revenue from equity and fixed-income assets (31 percent from equity assets and 21 percent from fixed-income assets), 47 percent from money market assets and 1 percent from other products and services. Operating expenses increased $9.4 million or 6 percent primarily as a result of a $4.5 million increase in distribution expense related primarily to reduced fee waivers and increased compensation and related expense."
Federated's release tells us, "Revenue increased by $1.9 million or 1 percent primarily related to a decrease in the aforementioned voluntary fee waivers due mainly to improved yields available on securities held by money market funds. This increase was partially offset by lower average money market assets and a change in the mix of average equity assets. Operating expenses increased by $3.2 million or 2 percent. This increase was primarily related to an increase in compensation and related expense and intangible asset related expense."
It warns, "Fee waivers to maintain positive or zero net yields could vary significantly in the future as they are contingent on a number of variables including, but not limited to, changes in assets within the money market funds, available yields on instruments held by the money market funds, actions by the Federal Reserve, the U.S. Department of the Treasury and other governmental entities, changes in expenses of the money market funds, changes in the mix of money market customer assets, Federated's willingness to continue the fee waivers and changes in the extent to which the impact of the waivers is shared by third parties."
Finally, the company adds, "Federated will host an earnings conference call at 9 a.m. Eastern on July 27, 2012. Investors are invited to listen to Federated's earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (international) prior to the 9 a.m. start time. The call may also be accessed in real time on the Internet via the About Federated section of FederatedInvestors.com. A replay will be available after 12:30 p.m. and through Aug. 3, 2012 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 397419." Look for more coverage following the call or in Monday's "News".