Concentration Risk

9 Months Ended

Sep. 30, 2019

(a) Revenue Concentration by Asset Class

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



	Nine Months Ended
	September 30,
	2019		2018
Equity Assets	41	%	42	%
Money Market Assets	39	%	37	%
Fixed-Income Assets	14	%	16	%

The change in the relative proportion of Federated's revenue attributable to money market assets for the nine months ended September 30, 2019, as compared to the same period in 2018, was primarily the result of higher average money market assets in 2019 as compared to 2018.

(b) Revenue Concentration by Investment Strategy/Fund

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Federated Strategic Value Dividend strategy¹	11	%	13	%	11	%	15	%
Federated Government Obligations Fund	10	%	8	%	10	%	9	%
Federated Kaufmann Mid-Cap Growth strategy²	9	%	10	%	9	%	10	%

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.

Approximately 11% of Federated's total revenue for both the three- and nine-month periods ended September 30, 2019 and 12% and 13% for the three- and nine-month periods ended September 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.