Federated Investors 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 funds.

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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