recorded net income of $47.7 million during the
three months ended June 30, down from $53.3 million in the same period
last year. Revenue fell 25 percent.
Company executives attributed the revenue drop to a $41.3 million
rise in voluntary fee waivers in connection with some money market
Federated ended the second quarter with managed assets of $336.8 billion,
down 16 percent from end-June 2009 and down 4 percent from end-March.
Money market mutual fund assets were at $231.2 billion, down 26 percent
from $312.8 billion at end-June 2009 and down 4 percent from $240.2 billion at the end of March.
The firm's fixed income assets totaled $38 billion at the end of June,
up 32 percent from $28.7 billion at the end of June 2009 and up 7 percent
from $35.3 billion at the end of March 2010. Year-to-date bond fund inflows
totaled $1.6 billion. Federated officials said net sales were driven by strong flows into Federated Total Return Bond Fund.
Among equity funds, top sellers were the Federated Prudent
Bear Fund, InterContinental Fund, Strategic Value Dividend Fund, Kaufmann
Large Cap Fund and Clover Small Value Fund. Equity assets totaled
$26.8 billion at end-June, up 2 percent from $26.2 billion at the end of June
2009 and down 11 percent from $30.1 billion at the close of March 2010.
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