PITTSBURGH—Federated Investors Inc. said Thursday that its third-quarter net income fell 11 percent as its revenue slipped on lower income from fees.
The Pittsburgh-based asset manager posted net income of $38.3 million, or 37 cents per share, compared with $43.1 million, or 42 cents, a year ago.
Analysts surveyed by FactSet expected 38 cents per share.
Revenue fell 12 percent to $214 million from $242.2 million. Advisory fees fell 15 percent and service fees were down 23 percent. Administrative service fees were up 3 percent.
Some of the declining fee revenue is the result of the company waiving fees in its money market mutual funds.
When interest rates are very low, money market mutual fund returns are so low that fund providers often waive their fees so that customers' net returns aren't negative.
Total managed assets on Sept. 30 were up 3 percent from a year ago to $351.7 billion.
Federated Investors shares rose $1.50, or 7.8 percent, to close at $20.78. They've traded as high as $28.57 in the past 52 weeks. Shares are off nearly 21 percent from the beginning of the year.