Federated sees profit jump in first quarter

Federated Investors Inc.’s profit increased 8% in the first quarter on higher demand for its money market funds. The Pittsburgh-based money management company said net income rose to $55.8 million, or 55 cents per share, up from $51.8 million, or 50 cents per share, in the year-ago period. Assets under management totaled $338.5 billion as of March 31, marking a 35% increase from $250.5 billion in the year-ago period. The increase in total managed assets was driven by a $40.9 billion increase in money market assets during the first quarter. The numbers were in line with Federated's preliminary first-quarter profit numbers, which were released on April 14 (InvestmentNews, April 14).