Federated Releases Q4 Earnings; Call
Federated Investors, the 5th largest manager of money funds, released its Fourth Quarter Earnings late Thursday and hosts its latest Earnings Conference Call on Friday morning at 9:00 a.m Eastern. (Watch for more from the earnings call in our News for Monday.) The release says, "Federated's money market assets were $265.2 billion at Dec. 31, 2017, up $13.0 billion or 5 percent from $252.2 billion at Dec. 31, 2016 and up $21.4 billion or 9 percent from $243.8 billion at Sept. 30, 2017. Money market mutual fund assets were $185.5 billion at Dec. 31, 2017, down $20.9 billion or 10 percent from $206.4 billion at Dec. 31, 2016 and up $7.6 billion or 4 percent from $177.9 billion at Sept. 30, 2017. Since Dec. 31, 2016, approximately $21 billion in money market assets have transitioned from Federated funds to Federated separate accounts. Federated's money market separate account assets were $79.7 billion at Dec. 31, 2017, up $33.9 billion or 74 percent from $45.8 billion at Dec. 31, 2016 and up $13.7 billion or 21 percent from $66.0 billion at Sept. 30, 2017." The release adds, "Revenue decreased by $11.6 million or 4 percent primarily due to a change in a customer relationship and a change in the mix of average money market assets. The decrease in revenue was partially offset by a decrease in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers) and an increase in revenue from higher average equity and fixed-income assets. During Q4 2017, Federated derived 60 percent of its revenue from equity and fixed-income assets (43 percent from equity assets and 17 percent from fixed-income assets) and 40 percent from money market assets.... Federated will host an earnings conference call at 9 a.m. Eastern on Jan. 26, 2018. Investors are invited to listen to Federated's earnings teleconference by calling 877-407-0782."
