* Q4 net income 44 cents per share vs Wall St view of 40
* Customers added $15 billion to money markets
* Total assets under management $379.8 billion
Jan 24 Federated Investors Inc, one of
the largest managers of U.S. money market funds, said its
fourth-quarter profit jumped 34 percent as higher yields in the
bond market bolstered fees.
Net income at Pittsburgh-based Federated totaled $49.6
million, or 44 cents per share, compared with $36.9 million, or
36 cents per share, a year earlier, the company said in a
statement on Thursday.
With rates on short-term bonds so low, Federated and other
money market fund managers have been forced to waive some of
their management fees to prevent fund yields from turning
negative. But in the fourth quarter, a slight uptick in rates
allowed Federated to garner more fees than a year earlier.
Fee waivers erased $15.5 million from Federated's pre-tax
profit in the fourth quarter, down 41 percent from $26.1 million
in the same period a year earlier.
Customers added a net $685 million to Federated's stock and
bond funds and $15.1 billion to its money funds and related
short-term accounts. Assets under management totaled $379.8
billion at the end of the quarter.
Ahead of the results, shares of Federated closed down 0.4
percent at $22.92 on the New York Stock Exchange on Thursday.
The shares have gained 13 percent so far this year, outpacing a
5 percent gain for the Standard & Poor's 500 Index.
Federated is the third-largest manager of money market
funds, trailing only Fidelity Investments and JPMorgan Chase &