Federated Reports Q3 Earnings
Federated Investors reported 3rd quarter earnings late Thursday and hosts a conference call at 9am Friday morning. The company's press release says, "As the equity and fixed income markets contracted in 2007 and 2008, Federated's money market assets increased by $182 billion and as markets recovered in 2009 and 2010, Federated's assets reflected industry trends as $95 billion flowed out of Federated's money market products. Since the end of 2006, Federated's money market managed assets have increased $87.3 billion to $260.9 billion at Sept. 30, 2010.... Money market assets in both funds and separate accounts were $260.9 billion at Sept. 30, 2010, down $57.2 billion or 18 percent from $318.1 billion at Sept. 30, 2009 and up $0.4 billion from $260.5 billion at June 30, 2010. Money market mutual fund assets were $233.6 billion at Sept. 30, 2010, down $54.0 billion or 19 percent from $287.6 billion at Sept. 30, 2009 and up $2.4 billion or 1 percent from $231.2 billion at June 30, 2010. Assets at Sept. 30, 2010 included $11.0 billion transitioned from SunTrust Banks, Inc.'s products late in the quarter. Federated expects an additional $3.5 billion to transition from SunTrust products into Federated money market funds before year-end." It adds, "In Q3 2010, Federated derived 51 percent of its revenue from money market assets.... As detailed at the end of this financial summary, voluntary fee waivers related to certain money market funds in order to maintain positive or zero net yields decreased during Q3 2010 compared to Q2 2010."
