Federated Investors reported earnings per diluted share (EPS) of $0.36 for the quarter ended Dec. 31, 2011 as compared to $0.45 for the same quarter last year. Net income was $36.9 million for Q4 2011 compared to $46.4 million for Q4 2010. The decrease of $9.5 million primarily relates to an increase in the negative impact of money market fund minimum-yield waivers.
Federated reported EPS for the year ended Dec. 31, 2011 of $1.45 compared to $1.73 for the year ended Dec. 31, 2010. For the year ended Dec. 31, 2011, net income was $150.9 million compared to $179.1 million for the prior year. The decrease of $28.2 million primarily relates to an increase in the negative impact of money market fund minimum-yield waivers and an increase in professional service fees related to the recognition of insurance proceeds in Q2 2010.
Federated's total managed assets were $369.7 billion at Dec. 31, 2011, up $11.5 billion or 3% from $358.2 billion at Dec. 31, 2010 and up $18.0 billion or 5% from $351.7 billion reported at Sept. 30, 2011. Average managed assets for Q4 2011 were $358.3 billion, up $12.6 billion or 4% from $345.7 billion reported for Q4 2010 and up $9.5 billion or 3% from $348.8 billion reported for Q3 2011. Combined equity and fixed-income net sales for funds and separate accounts were a positive $2.2 billion for Q4 2011 and $2.9 billion for the year ended Dec. 31, 2011.
“In a year when income-seeking strategies were in demand, investors found a range of opportunities at Federated, from our multi-sector and high-yield bond strategies to the particular interest in equity portfolios investing in dividend-paying companies in the U.S. and across the globe,” said J. Christopher Donahue, president and CEO. “Combined assets in Federated’s strategic-value portfolios more than doubled in 2011 to reach $10 billion, while our Strategic Value Dividend Fund became one of the best selling equity-income funds in the industry last year.”