Exhibit

EX-99.1 2 a991-2019q2earningspressre.htm PRESS RELEASE Exhibit

Exhibit 99.1

Federated Investors, Inc. Reports Second Quarter 2019 Earnings; Managed Assets Reach Record $502.2 billion


•	Q2 2019 EPS of $0.62 compared to $0.38 for Q2 2018


•	Money market assets up $77.9 billion or 31% from Q2 2018


•	Board declares $0.27 per share quarterly dividend

(PITTSBURGH, Pa., July 25, 2019) — Federated Investors, Inc. (NYSE: FII), one of the world's largest investment managers, today reported earnings per diluted share (EPS) of $0.62 for Q2 2019, compared to $0.38 for the same quarter last year, on net income of $62.7 million for Q2 2019, compared to $38.8 million for Q2 2018. Federated reported YTD 2019 EPS of $1.16, compared to $0.98 for the same period in 2018, on YTD 2019 net income of $117.3 million, compared to $99.2 million for the same period in 2018. Federated's Q2 2018 and YTD 2018 results included a $27.2 million pre-tax net expense, representing $0.21 per diluted share net of tax, primarily related to two foreign currency forward derivative instruments (FX Forward Loss) entered into in connection with Federated's Q3 2018 acquisition of a majority interest in Hermes Fund Managers Limited (Hermes).

Federated's total managed assets were a record $502.2 billion at June 30, 2019, up $122.5 billion or 32% from $379.7 billion at June 30, 2018 and up $17.3 billion or 4% from $484.9 billion at March 31, 2019. Total average managed assets for Q2 2019 were $493.3 billion, up $107.3 billion or 28% from $386.0 billion reported for Q2 2018 and up $17.9 billion or 4% from $475.4 billion reported for Q1 2019.

"Federated saw an uptick in interest in equity products during the second quarter, including the growth-focused Federated Kaufmann Small Cap Fund, the fundamentally driven MDT products and a range of Hermes strategies," said J. Christopher Donahue, president and chief executive officer. "Investors also continued to choose money market strategies for liquidity solutions, especially our prime money market products."

Federated's board of directors declared a quarterly dividend of $0.27 per share. The dividend is payable on Aug. 15, 2019 to shareholders of record as of Aug. 8, 2019. During Q2 2019, Federated purchased 52,600 shares of Federated class B common stock for $0.7 million.

Federated's equity assets were $82.0 billion at June 30, 2019, up $24.0 billion or 41% from $58.0 billion at June 30, 2018 and up $1.8 billion or 2% from $80.2 billion at March 31, 2019. Top-selling equity funds during Q2 2019 on a net basis were Federated Kaufmann Small Cap Fund; Hermes Global Emerging Markets Fund; Federated MDT Small Cap Growth Fund; Hermes Global Equity ESG Fund; and Hermes SDG Engagement Equity Fund.

Federated's fixed-income assets were $65.1 billion at June 30, 2019, up $3.7 billion or 6% from $61.4 billion at June 30, 2018 and up $1.0 billion or 2% from $64.1 billion at March 31, 2019. Top-selling fixed-income funds during Q2 2019 on a net basis were Federated Total Return Bond Fund; Federated Sterling Cash Plus Fund; Federated Institutional High Yield Bond Fund; Federated U.S. Government Securities Fund:1-3 Years; and Federated Government Ultrashort Duration Fund.



MEDIA:	MEDIA:	ANALYSTS:
Ed Costello 412-288-7538	Meghan McAndrew 412-288-8103	Ray Hanley 412-288-1920



Federated Reports Q2 2019 Earnings		Page 2 of 12

Money market assets were $333.1 billion at June 30, 2019, up $77.9 billion or 31% from $255.2 billion at June 30, 2018 and up $14.7 billion or 5% from $318.4 billion at March 31, 2019. Money market fund assets were $231.3 billion at June 30, 2019, up $58.6 billion or 34% from $172.7 billion at June 30, 2018 and up $16.5 billion or 8% from $214.8 billion at March 31, 2019. Federated's money market separate account assets were $101.7 billion at June 30, 2019, up $19.1 billion or 23% from $82.6 billion at June 30, 2018 and down $1.9 billion or 2% from $103.6 billion at March 31, 2019.

Financial Summary

Q2 2019 vs. Q2 2018

Revenue increased $65.5 million or 26% primarily due to the consolidation of Hermes' revenue and higher average domestic money market assets. These increases in revenue were partially offset by a decrease in revenue from lower average domestic equity assets.

During Q2 2019, Federated derived 61% of its revenue from long-term assets (42% from equity assets, 14% from fixed-income assets and 5% from multi-asset and alternative/private markets assets), 38% from money market assets, and 1% from sources other than managed assets.

Operating expenses increased $61.3 million or 35% primarily due to the consolidation of Hermes' expenses and an increase in distribution expenses associated with higher average money market fund assets.

Nonoperating income (expenses), net decreased $28.4 million primarily due to the Q2 2018 FX Forward Loss.

Q2 2019 vs. Q1 2019

Revenue increased $14.4 million or 5% primarily due to higher average equity and money market assets.

Amortization of intangibles related to the Hermes acquisition recorded in other operating expenses decreased $2.6 million due primarily to a one-time reversal of $1.9 million related to the finalization of the purchase price allocation. Assuming no change to foreign exchange rates, amortization of intangibles recorded in operating expenses is expected to be approximately $8 million on an annual basis.

Nonoperating amortization of intangibles related to the Hermes acquisition increased $0.6 million due primarily to a one-time increase of $0.4 million related to the finalization of the purchase price allocation. Assuming no change to foreign exchange rates, amortization of intangibles recorded in nonoperating expenses is expected to be approximately $2 million on an annual basis.

YTD 2019 vs. YTD 2018

Revenue increased $108.7 million or 21% primarily due to the consolidation of Hermes’ revenue, which included performance fees of $2.8 million, and higher average domestic money market assets. These increases in revenue were partially offset by a decrease in revenue from lower average domestic equity and multi-asset assets and a change in the mix of average domestic fixed-income assets.

For the first half of 2019, Federated derived 61% of its revenue from long-term assets (41% from equity assets, 14% from fixed-income assets and 6% from multi-asset and alternative/private markets assets), 38% from money market assets, and 1% from sources other than managed assets.

Operating expenses increased $113.3 million or 32% due to the consolidation of Hermes' expenses and an increase in distribution expenses associated with higher average money market fund assets.



Federated Reports Q2 2019 Earnings		Page 3 of 12

Nonoperating income (expenses), net decreased $30.8 million primarily due to the Q2 2018 FX Forward Loss.

Federated's level of business activity and financial results are dependent upon many factors, including market conditions, investment performance and investor behavior. These factors and others, including asset levels and mix, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers, expenses and regulatory changes, can significantly impact Federated's business activity levels and financial results. Risk factors and uncertainties that can influence Federated's financial results are discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission (SEC).

Federated will host an earnings conference call at 9 a.m. Eastern on July 26, 2019. Investors are invited to listen to Federated's earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (international) prior to the 9 a.m. start time. The call may also be accessed online in real time via the About section of FederatedInvestors.com. A replay will be available from approximately 12:30 p.m. Eastern on July 26, 2019 until Aug. 2, 2019 by calling 877-481-4010 (domestic) or 919-882-2331 (international) and entering access code 49711. An online replay will be available via FederatedInvestors.com for one year.

Federated Investors, Inc. is a leading global investment manager with $502.2 billion in assets under management as of June 30, 2019. Our investment solutions span 130 equity, fixed-income, alternative/private markets, multi-asset and money market funds and a range of separately managed account strategies. Providing comprehensive investment management to more than 10,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated’s more than 1,900 employees include those in New York, Boston, London and several other offices worldwide. In 2018, Federated acquired a majority interest in Hermes Investment Management, which provides world-class active management and stewardship services.

Federated ranks in the top 6% of equity fund managers in the industry, the top 7% of money market fund managers and the top 11% of fixed-income fund managers¹. Federated also ranks as the 10th-largest SMA manager². Information regarding Hermes is available at Hermes-Investment.com. An analyst presentation that includes information about Hermes also is available. For more information, visit FederatedInvestors.com.

###

1) Strategic Insight, June 30, 2019. Based on assets under management in open-end funds.

2) Money Management Institute/Cerulli, Q1 2019.

Federated Securities Corp. is distributor of the Federated funds.

Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Investment Management Limited and Hermes European Equities Limited, each a registered investment adviser.

Certain statements in this press release, such as those related to performance, investor preferences and demand, and asset flows and mix, constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, sustain product demand, and asset flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the SEC. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.



Federated Reports Q2 2019 Earnings		Page 4 of 12



Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
	Quarter Ended						% Change Q2 2018 to Q2 2019		Quarter Ended			% Change Q1 2019 to Q2 2019
	June 30, 2019			June 30, 2018					March 31, 2019
Revenue
Investment advisory fees, net	$	220,669		$	168,127		31	%	$	211,199		4	%
Administrative service fees, net—affiliates	57,968			48,370			20		54,135			7
Other service fees, net	42,842			39,496			8		41,716			3
Total Revenue	321,479			255,993			26		307,050			5

Operating Expenses
Compensation and related	107,248			74,147			45		111,216			(4	)
Distribution	82,000			69,446			18		77,632			6
Systems and communications	12,111			7,751			56		12,794			(5	)
Office and occupancy	11,066			7,365			50		11,362			(3	)
Professional service fees	10,281			9,278			11		10,486			(2	)
Advertising and promotional	4,697			3,237			45		4,190			12
Travel and related	4,459			3,523			27		3,848			16
Other	4,677			489			NM		4,633			1
Total Operating Expenses	236,539			175,236			35		236,161			0
Operating Income	84,940			80,757			5		70,889			20

Nonoperating Income (Expenses)
Investment income (loss), net	1,526			1,377			11		2,709			(44	)
Debt expense	(1,332		)	(1,431		)	(7	)	(1,400		)	(5	)
Other, net	(832		)	(28,974		)	(97	)	324			(357	)
Total Nonoperating Income (Expenses), net	(638		)	(29,028		)	(98	)	1,633			(139	)
Income before income taxes	84,302			51,729			63		72,522			16
Income tax provision	20,462			13,062			57		17,911			14
Net income including the noncontrolling interests in subsidiaries	63,840			38,667			65		54,611			17
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries	1,116			(155		)	NM		65			NM
Net Income	$	62,724		$	38,822		62	%	$	54,546		15	%

Amounts Attributable to Federated Investors, Inc.
Earnings Per Share¹
Basic and diluted	$	0.62		$	0.38		63	%	$	0.54		15	%
Weighted-Average Shares Outstanding
Basic	97,330			97,193					96,994
Diluted	97,330			97,194					96,995
Dividends Declared Per Share	$	0.27		$	0.27				$	0.27

1) Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of basic earnings per share under the "two-class method." As such, total net income of $2.4 million, $1.5 million and $2.1 million available to unvested restricted Federated shareholders for the quarterly periods ended June 30, 2019, June 30, 2018 and March 31, 2019, respectively, was excluded from the computation of basic earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share excludes net income available to unvested shareholders of a nonpublic consolidated subsidiary for the quarterly periods ended June 30, 2019 and March 31, 2019.



Federated Reports Q2 2019 Earnings		Page 5 of 12



Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
	Six Months Ended
	June 30, 2019			June 30, 2018			% Change
Revenue
Investment advisory fees, net	$	431,868		$	342,393		26	%
Administrative service fees, net—affiliates	112,103			97,393			15
Other service fees, net	84,558			80,059			6
Total Revenue	628,529			519,845			21

Operating Expenses
Compensation and related	218,464			152,521			43
Distribution	159,632			141,945			12
Professional service fees	20,767			18,908			10
Systems and communications	24,905			16,184			54
Office and occupancy	22,428			14,906			50
Advertising and promotional	8,886			6,465			37
Travel and related	8,307			6,344			31
Other	9,311			2,144			334
Total Operating Expenses	472,700			359,417			32
Operating Income	155,829			160,428			(3	)

Nonoperating Income (Expenses)
Investment income (loss), net	4,235			2,095			102
Debt expense	(2,732		)	(2,761		)	(1	)
Other, net	(508		)	(29,117		)	(98	)
Total Nonoperating Income (Expenses), net	995			(29,783		)	(103	)
Income before income taxes	156,824			130,645			20
Income tax provision	38,373			31,972			20
Net income including the noncontrolling interests in subsidiaries	118,451			98,673			20
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries	1,181			(480		)	(346	)
Net Income	$	117,270		$	99,153		18	%

Amounts Attributable to Federated Investors, Inc.
Earnings Per Share¹
Basic and diluted	$	1.16		$	0.98		18	%
Weighted-Average Shares Outstanding
Basic	97,163			97,191
Diluted	97,163			97,192
Dividends Declared Per Share	$	0.54		$	0.52

1) Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of basic earnings per share under the "two-class method." As such, total net income of $4.5 million and $3.9 million available to unvested restricted Federated shareholders for the six months ended June 30, 2019 and June 30, 2018 , respectively, was excluded from the computation of basic earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share excludes net income available to unvested shareholders of a nonpublic consolidated subsidiary for the six-month period ended June 30, 2019.



Federated Reports Q2 2019 Earnings		Page 6 of 12



Unaudited Condensed Consolidated Balance Sheets
(in thousands)	June 30, 2019			Dec. 31, 2018
Assets
Cash and other investments	$	227,010		$	190,490
Other current assets	111,362			113,611
Intangible assets, net, including goodwill	1,148,063			1,149,247
Other long-term assets	201,615			90,335
Total Assets	$	1,688,050		$	1,543,683

Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities	$	151,809		$	181,180
Long-term debt	125,000			135,000
Other long-term liabilities	296,725			187,869
Redeemable noncontrolling interests	201,988			182,513
Equity excluding treasury stock	1,190,161			1,144,458
Treasury stock	(277,633		)	(287,337		)
Total Liabilities, Redeemable Noncontrolling Interests and Equity	$	1,688,050		$	1,543,683



Federated Reports Q2 2019 Earnings		Page 7 of 12



Unaudited Changes in Long-Term Assets - By Asset Class
(in millions)	Quarter Ended									Six Months Ended
	June 30, 2019			March 31, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Equity
Beginning assets	$	80,245		$	72,497		$	58,830		$	72,497		$	62,816
Sales¹	4,812			5,136			2,731			9,948			5,924
Redemptions¹	(4,404		)	(5,926		)	(5,078		)	(10,330		)	(10,336		)
Net sales (redemptions)¹	408			(790		)	(2,347		)	(382		)	(4,412		)
Net exchanges	191			13			202			204			75
Impact of foreign exchange²	4			(122		)	0			(118		)	0
Market gains and losses³	1,151			8,647			1,288			9,798			(506		)
Ending assets	$	81,999		$	80,245		$	57,973		$	81,999		$	57,973

Fixed Income
Beginning assets	$	64,107		$	63,158		$	62,205		$	63,158		$	64,160
Sales¹	5,193			5,416			4,755			10,609			9,663
Redemptions¹	(5,181		)	(6,341		)	(4,934		)	(11,522		)	(11,528		)
Net sales (redemptions)¹	12			(925		)	(179		)	(913		)	(1,865		)
Net exchanges	(191		)	(33		)	(207		)	(224		)	(80		)
Impact of foreign exchange²	(25		)	8			0			(17		)	0
Market gains and losses³	1,149			1,899			(384		)	3,048			(780		)
Ending assets	$	65,052		$	64,107		$	61,435		$	65,052		$	61,435

Alternative/Private Markets⁴
Beginning assets	$	17,854		$	18,318		$	343		$	18,318		$	366
Sales¹	320			313			15			633			56
Redemptions¹	(302		)	(858		)	(44		)	(1,160		)	(111		)
Net sales (redemptions)¹	18			(545		)	(29		)	(527		)	(55		)
Net exchanges	(1		)	(2		)	(2		)	(3		)	(1		)
Impact of foreign exchange²	(435		)	387			0			(48		)	0
Market gains and losses³	481			(304		)	(20		)	177			(18		)
Ending assets	$	17,917		$	17,854		$	292		$	17,917		$	292

Multi-asset
Beginning assets	$	4,259		$	4,093		$	4,843		$	4,093		$	5,014
Sales¹	78			104			126			182			254
Redemptions¹	(228		)	(241		)	(229		)	(469		)	(464		)
Net sales (redemptions)¹	(150		)	(137		)	(103		)	(287		)	(210		)
Net exchanges	0			2			(2		)	2			(2		)
Market gains and losses³	104			301			(8		)	405			(72		)
Ending assets	$	4,213		$	4,259		$	4,730		$	4,213		$	4,730

Total Long-term Assets⁴
Beginning assets	$	166,465		$	158,066		$	126,221		$	158,066		$	132,356
Sales¹	10,403			10,969			7,627			21,372			15,897
Redemptions¹	(10,115		)	(13,366		)	(10,285		)	(23,481		)	(22,439		)
Net sales (redemptions)¹	288			(2,397		)	(2,658		)	(2,109		)	(6,542		)
Net exchanges	(1		)	(20		)	(9		)	(21		)	(8		)
Impact of foreign exchange²	(456		)	273			0			(183		)	0
Market gains and losses³	2,885			10,543			876			13,428			(1,376		)
Ending assets	$	169,181		$	166,465		$	124,430		$	169,181		$	124,430

1) For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2) Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes. Reporting only contains foreign exchange separately beginning with Q1 2019 (previously included in Market gains and losses).

3) Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions, net investment income and the impact of changes in foreign exchange rates for periods prior to Q1 2019.


4)	Ending assets includes $8.4 billion and $8.1 billion at June 30, 2019 and March 31, 2019, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.



Federated Reports Q2 2019 Earnings		Page 8 of 12



Unaudited Changes in Long-Term Assets - By Asset Class and Product Type
(in millions)
	Quarter Ended
	June 30, 2019
	Equity						Fixed Income						Alternative / Private Markets						Multi-asset						Total
	Funds			Separate Accounts¹			Funds			Separate Accounts¹			Funds²			Separate Accounts¹			Funds			Separate Accounts¹			Funds²			Separate Accounts¹
Beginning assets	$	42,057		$	38,188		$	41,189		$	22,918		$	11,164		$	6,690		$	4,072		$	187		$	98,482		$	67,983
Sales	3,047			1,765			4,141			1,052			241			79			73			5			7,502			2,901
Redemptions	(2,740		)	(1,664		)	(3,845		)	(1,336		)	(213		)	(89		)	(222		)	(6		)	(7,020		)	(3,095		)
Net sales (redemptions)	307			101			296			(284		)	28			(10		)	(149		)	(1		)	482			(194		)
Net exchanges	191			0			(191		)	0			(1		)	0			0			0			(1		)	0
Impact of foreign exchange³	(27		)	31			(37		)	12			(267		)	(168		)	0			0			(331		)	(125		)
Market gains and losses⁴	915			236			827			322			476			5			96			8			2,314			571
Ending assets	$	43,443		$	38,556		$	42,084		$	22,968		$	11,400		$	6,517		$	4,019		$	194		$	100,946		$	68,235

	Six Months Ended
	June 30, 2019
	Equity						Fixed Income						Alternative / Private Markets						Multi-asset						Total
	Funds			Separate Accounts¹			Funds			Separate Accounts¹			Funds²			Separate Accounts¹			Funds			Separate Accounts¹			Funds²			Separate Accounts¹
Beginning assets	$	36,584		$	35,913		$	40,490		$	22,668		$	11,365		$	6,953		$	3,920		$	173		$	92,359		$	65,707
Sales	6,459			3,489			8,295			2,314			495			138			175			7			15,424			5,948
Redemptions	(5,743		)	(4,587		)	(8,571		)	(2,951		)	(600		)	(560		)	(457		)	(12		)	(15,371		)	(8,110		)
Net sales (redemptions)	716			(1,098		)	(276		)	(637		)	(105		)	(422		)	(282		)	(5		)	53			(2,162		)
Net exchanges	204			0			(199		)	(25		)	(3		)	0			2			0			4			(25		)
Impact of foreign exchange³	(42		)	(76		)	(14		)	(3		)	(27		)	(21		)	0			0			(83		)	(100		)
Market gains and losses⁴	5,981			3,817			2,083			965			170			7			379			26			8,613			4,815
Ending assets	$	43,443		$	38,556		$	42,084		$	22,968		$	11,400		$	6,517		$	4,019		$	194		$	100,946		$	68,235


1)	Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.


2)	Ending assets includes $8.4 billion of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.

3) Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.


4)	Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.



Federated Reports Q2 2019 Earnings		Page 9 of 12



Unaudited Changes in Long-Term Assets - By Product Type
(in millions)	Quarter Ended									Six Months Ended
	June 30, 2019			March 31, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Total Fund Assets¹
Beginning assets	$	98,482		$	92,359		$	76,999		$	92,359		$	79,301
Sales	7,502			7,922			5,609			15,424			11,565
Redemptions	(7,020		)	(8,351		)	(6,947		)	(15,371		)	(14,581		)
Net sales (redemptions)	482			(429		)	(1,338		)	53			(3,016		)
Net exchanges	(1		)	5			(7		)	4			(9		)
Impact of foreign exchange²	(331		)	248			0			(83		)	0
Market gains and losses³	2,314			6,299			735			8,613			113
Ending assets	$	100,946		$	98,482		$	76,389		$	100,946		$	76,389

Total Separate Account Assets⁴
Beginning assets	$	67,983		$	65,707		$	49,222		$	65,707		$	53,055
Sales⁵	2,901			3,047			2,018			5,948			4,332
Redemptions⁵	(3,095		)	(5,015		)	(3,338		)	(8,110		)	(7,858		)
Net sales (redemptions)⁵	(194		)	(1,968		)	(1,320		)	(2,162		)	(3,526		)
Net exchanges	0			(25		)	(2		)	(25		)	1
Impact of foreign exchange²	(125		)	25			0			(100		)	0
Market gains and losses³	571			4,244			141			4,815			(1,489		)
Ending assets	$	68,235		$	67,983		$	48,041		$	68,235		$	48,041

Total Long-term Assets^1,4
Beginning assets	$	166,465		$	158,066		$	126,221		$	158,066		$	132,356
Sales⁵	10,403			10,969			7,627			21,372			15,897
Redemptions⁵	(10,115		)	(13,366		)	(10,285		)	(23,481		)	(22,439		)
Net sales (redemptions)⁵	288			(2,397		)	(2,658		)	(2,109		)	(6,542		)
Net exchanges	(1		)	(20		)	(9		)	(21		)	(8		)
Impact of foreign exchange²	(456		)	273			0			(183		)	0
Market gains and losses³	2,885			10,543			876			13,428			(1,376		)
Ending assets	$	169,181		$	166,465		$	124,430		$	169,181		$	124,430


1)	Includes $8.4 billion and $8.1 billion at June 30, 2019 and March 31, 2019, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.

4) Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products.


5)	For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.



Federated Reports Q2 2019 Earnings		Page 10 of 12



Unaudited Managed Assets (in millions)	June 30, 2019		March 31, 2019		Dec. 31, 2018		Sept. 30, 2018		June 30, 2018
By Asset Class
Equity	$	81,999	$	80,245	$	72,497	$	84,143	$	57,973
Fixed-income	65,052		64,107		63,158		65,369		61,435
Alternative / private markets¹	17,917		17,854		18,318		18,621		292
Multi-asset	4,213		4,259		4,093		4,790		4,730
Total long-term assets	169,181		166,465		158,066		172,923		124,430
Money market	333,066		318,413		301,794		264,233		255,247
Total Managed Assets	$	502,247	$	484,878	$	459,860	$	437,156	$	379,677

By Product Type
Funds:
Equity	$	43,443	$	42,057	$	36,584	$	43,578	$	31,699
Fixed-income	42,084		41,189		40,490		41,817		39,877
Alternative / private markets¹	11,400		11,164		11,365		11,457		292
Multi-asset	4,019		4,072		3,920		4,585		4,521
Total long-term assets	100,946		98,482		92,359		101,437		76,389
Money market	231,321		214,764		208,480		182,966		172,671
Total Fund Assets	$	332,267	$	313,246	$	300,839	$	284,403	$	249,060
Separate Accounts:
Equity	$	38,556	$	38,188	$	35,913	$	40,565	$	26,274
Fixed-income	22,968		22,918		22,668		23,552		21,558
Alternative / private markets	6,517		6,690		6,953		7,164		0
Multi-asset	194		187		173		205		209
Total long-term assets	68,235		67,983		65,707		71,486		48,041
Money market	101,745		103,649		93,314		81,267		82,576
Total Separate Account Assets	$	169,980	$	171,632	$	159,021	$	152,753	$	130,617
Total Managed Assets	$	502,247	$	484,878	$	459,860	$	437,156	$	379,677

1) Includes $8.4 billion, $8.1 billion, $8.3 billion and $8.4 billion at June 30, 2019, March 31, 2019, Dec. 31, 2018 and Sept. 30, 2018, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.



Federated Reports Q2 2019 Earnings		Page 11 of 12



Unaudited Average Managed Assets	Quarter Ended
(in millions)	June 30, 2019		March 31, 2019		Dec. 31, 2018		Sept. 30, 2018		June 30, 2018
By Asset Class
Equity	$	80,819	$	77,554	$	78,084	$	84,262	$	58,818
Fixed-income	64,913		64,167		63,881		64,750		61,648
Alternative / private markets¹	17,772		18,311		18,410		18,504		319
Multi-asset	4,225		4,225		4,449		4,805		4,824
Total long-term assets	167,729		164,257		164,824		172,321		125,609
Money market	325,527		311,150		278,885		261,571		260,371
Total Avg. Managed Assets	$	493,256	$	475,407	$	443,709	$	433,892	$	385,980

By Product Type
Funds:
Equity	$	42,571	$	40,217	$	39,871	$	43,473	$	31,911
Fixed-income	41,652		41,095		41,088		41,501		40,199
Alternative / private markets¹	11,146		11,545		11,351		11,109		319
Multi-asset	4,034		4,042		4,268		4,598		4,604
Total long-term assets	99,403		96,899		96,578		100,681		77,033
Money market	222,282		209,260		194,009		179,562		175,885
Total Avg. Fund Assets	$	321,685	$	306,159	$	290,587	$	280,243	$	252,918
Separate Accounts:
Equity	$	38,248	$	37,337	$	38,213	$	40,789	$	26,907
Fixed-income	23,261		23,072		22,793		23,249		21,449
Alternative / private markets	6,626		6,766		7,059		7,395		0
Multi-asset	191		183		181		207		220
Total long-term assets	68,326		67,358		68,246		71,640		48,576
Money market	103,245		101,890		84,876		82,009		84,486
Total Avg. Separate Account Assets	$	171,571	$	169,248	$	153,122	$	153,649	$	133,062
Total Avg. Managed Assets	$	493,256	$	475,407	$	443,709	$	433,892	$	385,980

1) The average balance includes $8.1 billion, $8.4 billion, $8.3 billion and $8.2 billion for the quarters ended June 30, 2019, March 31, 2019, Dec. 31, 2018 and Sept. 30, 2018, respectively, of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.



Federated Reports Q2 2019 Earnings		Page 12 of 12



Unaudited Average Managed Assets	Six Months Ended
(in millions)	June 30, 2019		June 30, 2018
By Asset Class
Equity	$	79,187	$	60,186
Fixed-income	64,540		62,593
Alternative / private markets¹	18,041		337
Multi-asset	4,225		4,902
Total long-term assets	165,993		128,018
Money market	318,339		263,958
Total Avg. Managed Assets	$	484,332	$	391,976

By Product Type
Funds:
Equity	$	41,394	$	32,296
Fixed-income	41,373		40,610
Alternative / private markets¹	11,346		337
Multi-asset	4,038		4,677
Total long-term assets	98,151		77,920
Money market	215,771		178,870
Total Avg. Fund Assets	$	313,922	$	256,790
Separate Accounts:
Equity	$	37,793	$	27,890
Fixed-income	23,167		21,983
Alternative / private markets	6,695		0
Multi-asset	187		225
Total long-term assets	67,842		50,098
Money market	102,568		85,088
Total Avg. Separate Account Assets	$	170,410	$	135,186
Total Avg. Managed Assets	$	484,332	$	391,976

1) The average balance includes $8.3 billion for the six months ended June 30, 2019 of assets managed by a nonconsolidated entity, Hermes GPE LLP, in which Hermes holds an equity method investment.