Federated Q1 Earnings; Call Fri. 9am
Federated Investors released its latest quarterly earnings last night, saying, "Money market assets in both funds and separate accounts were $279.7 billion at March 31, 2013, up $5.0 billion or 2 percent from $274.7 billion at March 31, 2012 and down $5.0 billion or 2 percent from $284.7 billion at Dec. 31, 2012. Money market mutual fund assets were $242.7 billion at March 31, 2013, down $2.5 billion or 1 percent from $245.2 billion at March 31, 2012 and down $13.0 billion or 5 percent from $255.7 billion at Dec. 31, 2012. Revenue decreased by $2.3 million or 1 percent due primarily to an increase in voluntary fee waivers related to certain money market funds in order for these funds to maintain positive or zero net yields. The decrease was partially offset by an increase in revenue due to higher average fixed-income and equity assets.... During Q1 2013, Federated derived 56 percent of its revenue from equity and fixed-income assets (33 percent from equity assets and 23 percent from fixed-income assets), 43 percent from money market assets and 1 percent from other products and services.... Revenue decreased by $16.9 million or 7 percent primarily due to an increase in voluntary fee waivers and fewer days in the quarter, partially offset by an increase in average assets. Operating expenses decreased by $1.9 million or 1 percent. The decrease primarily reflects lower distribution expense related to the aforementioned increase in fee waivers.... 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, the Securities and Exchange Commission, the Financial Stability Oversight Council 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." Watch for more coverage following the conference call Friday morning. In other news, ICI released its latest "Money Market Mutual Fund Assets," which says, "Total money market mutual fund assets decreased by $1.87 billion to $2.593 trillion for the week ended Wednesday, April 24."
