Concentration Risk

6 Months Ended

Jun. 30, 2019

(a) Revenue Concentration by Asset Class

The following table presents Federated's revenue concentration by asset class:



	Six Months Ended
	June 30,
	2019		2018
Equity Assets	41	%	40	%
Money Market Assets	38	%	39	%
Fixed-Income Assets	14	%	17	%

The change in the relative proportion of Federated's revenue attributable to equity assets for the six months ended June 30, 2019, as compared to the same period in 2018, was primarily the result of higher average equity assets mostly as a result of the July 2018 Hermes Acquisition. Because the Hermes Acquisition was primarily comprised of equity assets and alternative/private markets assets, the relative proportion of Federated's revenue attributable to money market and fixed-income assets decreased for the six months ended 2019 as compared to the same period in 2018.

(b) Revenue Concentration by Investment Strategy/Fund

The following table presents Federated's revenue concentration by investment strategy/fund:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Federated Strategic Value Dividend strategy¹	11	%	16	%	11	%	17	%
Federated Government Obligations Fund	9	%	10	%	9	%	10	%
Federated Kaufmann Mid-Cap Growth strategy²	9	%	11	%	9	%	11	%

1Strategy includes Federated Funds and Separate Accounts.

2 Strategy includes Federated Funds.

A significant and prolonged decline in the AUM in these strategies/fund could have a material adverse effect on Federated's future revenues and, to a lesser extent, net income, due to a related reduction in distribution expenses associated with the Federated Funds managed in accordance with these strategies/fund.

Approximately 11% of Federated's total revenue for both the three- and six-month periods ended June 30, 2019 and 14% for both the three- and six-month periods ended June 30, 2018 was derived from services provided to one intermediary, The Bank of New York Mellon Corporation, including its Pershing subsidiary. Significant negative changes in Federated's relationship with this intermediary could have a material adverse effect on Federated's future revenues and, to a lesser extent, net income due to a related reduction in distribution expenses associated with this intermediary.