first-quarter earnings rose 16% on the back of a commensurate increase in assets under management.
The Pittsburgh money manager reported after the close Thursday that its net income for the three months ended March 31 rose to 50 cents a diluted share from 43 cents per share for a year earlier.
The results matched analysts expectations, as measured by a Thomson Financial poll.
Federated's total assets finished the quarter at a record $250.5 million, up $13 million, or 5.5%, from the previous quarter and up $33 million, or 15%, from a year earlier.
The bulk of the increase came from money market assets that finished the quarter at $185.9 million, up $12.3 million, or 7%, from year's end. Total equity assets, including mutual funds and separate accounts, rose just $450,000 during the quarter to $41.3 million and total fixed-income assets rose by only $200,000 to $23.1 million.
All of the increase in equity and fixed-income funds was attributable to market appreciation. During the first quarter, investors pulled out a net of $504 million from the firm's equity fund assets, but this was offset by $566 million in market appreciation. Investors also pulled out a net of $279 million of fixed-income funds, but this was partially offset by $197 million in market appreciation.
The company's board of directors also announced an increase of the quarterly dividend of 17%, to 21 cents per share.