Overall assets under management at Federated slumped due to fixed-income and money market withdrawals.

Federated Investors’ profits rose 3% in the latest quarter to $50.6 million from the period during the previous year as the firm’s equity assets swelled to record levels.

Revenue at Federated also jumped to $213.1 million in June from $195.7 million from the same quarter last year, although profits of 44 cents per share slightly lagged analysts’ expectations of 45 cents to 49 cents per share.

Assets under management in Federated’s signature money market assets slipped marginally, dragging down the firm’s overall assets under management to 183.8 billion from 202.4 billion during the same quarter last year. Investor outflows from money market assets were partially attributed to low interest rates tamping down on money market returns. But more profitable equity assets at the firm rose 28% to $26.6 billion from 20.8 billion during the same quarter last year. Money markets during the same period fell 13% to 131.4 billion from 151.4 billion.

The firm also said it took a $5 million charge due to legal and regulatory and compliance, $2.9 million of which is from an internal review of trading practices and $2.1 million from legal costs.

 

 

 

 

 

 

 

 

 

 

 

 

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