As of December 31, 2011, cash and other investments were $322.3 million, down from $333.6 million at the end of December 31, 2011. Total long-term debt was $420.4 million, down from $445.5 million at the end of December 31, 2011.

As of December 31, 2011, Federated’s total managed assets were $369.7 billion, up $11.5 billion or 3.0% from $358.2 billion as of December 31, 2010, and up $18.0 billion or 5.0% from $351.7 billion as of September 30, 2011. Average managed assets in 4Q11 were $358.3 billion, up $12.6 billion or 4.0% from $345.7 billion in 4Q10 and up $9.5 billion or 3.0% from $348.8 billion in 3Q11. Combined equity and fixed income net sales for funds and separate accounts were $2.2 billion for the quarter and $ $2.9 billion for the year ended December 31, 2011.

At quarter-end, Federated’s fixed-income assets were $44.8 billion, up $4.1 billion or 10.0% from $40.7 billion as of December 31, 2010, and up $1.9 billion or 4.0% from $42.9 billion as of September 30, 2011. Fixed-income assets in liquidation portfolios were $8.9 billion. Sales were driven by strong net flows in Federated Total Return Bond Fund, Federated Municipal Ultrashort Fund, Federated Institutional High Yield Bond Fund, Federated Total Return Government Bond Fund and Federated's Capital Preservation Fund.

Federated’s equity assets were $30.9 billion as of December 31, 2011, up $0.1 billion from $30.8 billion as of December 31, 2010, and up $2.9 billion or 10.0% from $28.0 billion as of September 30, 2011. Net sales were positive in both equity funds and separate accounts for the quarter and for the year ended December 31, 2011. Top-selling equity funds during 4Q11 on a net basis were Federated Strategic Value Dividend Fund, Federated International Strategic Value Dividend Fund and Federated Clover Small Value Fund.

Money market assets in both funds and separate accounts were $285.1 billion as of December 31, 2011, up $9.1 billion or 3.0% from $276.0 billion as of December 31, 2010, and up $13.4 billion or 5.0% from $271.7 billion as of September 30, 2011. Alongside, money market mutual fund assets were $255.9 billion as of December 31, 2011, up $11.1 billion or 5.0% from $244.8 billion as of December 31, 2010, and up $10.6 billion or 4.0% from $245.3 billion as of September 30, 2011.

Outlook: According to some firms, Federated’s level of business activity and financial results are dependent upon many factors including market conditions, investment performance and investor behavior. These factors and others including asset levels, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers and expenses can influence Federated’s activity levels and financial results significantly.

Based on the conditions of the market, fee waivers that can produce positive or zero net yields could vary significantly. The amount of these waivers will be determined by a variety of factors, but will not be limited to, the available yields on instruments held by the money market funds, changes in assets, actions by the Federal Reserve, the U.S. Department of the Treasury and other governmental entities, changes in the mix of money market customer assets, changes in expenses of the money market funds and Federated’s willingness to continue these waivers.

Share Repurchase

During 4Q11, Federated purchased 561,850 shares of Federated Class B common stock worth $9.0 million. In 2011, the company purchased 1.6 million shares of Federated class B common stock for $28.1 million.

During 2008, the Board of Directors authorized a share repurchase program with no stated expiration date that allows Federated to buy back nearly 5 million shares of Class B common stock. The program authorizes executive management to determine the timing and the amount of shares for each purchase. The repurchased stock will be held in treasury for employee share-based compensation plans, potential acquisitions and other corporate activities.

Dividend

On January 26, 2012, Federated's board of directors declared a quarterly dividend of $0.24 per share. The dividend was paid on February 15, 2012 to shareholders of record as of February 8, 2012.

On October 27, 2011, Federated's board of directors declared a quarterly dividend of $0.24 per share. The dividend was paid on November 15, 2011 to shareholders of record as of November 8, 2011.

Others

On December 22, 2011, Federated Investors has announced the expansion of its operation in United Kingdom. The company is acquiring London-based Prime Rate Capital Management, LLP from Matrix Group Limited. The firm provides institutional liquidity and fixed-income products. UCITS products offered by Prime Rate include Prime Rate Sterling Liquidity Fund, Prime Rate Euro Liquidity Fund and Prime Rate US Dollar Liquidity Fund. The above deal is awaiting regulators’ approval, including the UK Financial Services Authority, and other customary conditions. The transaction is anticipated to be completed during 1Q12.

Founded in 1987, Matrix Group is a privately owned and autonomous financial services business. The company’s main focus is on advising clients, raising funds and management of assets. Matrix's range of activities includes hedge funds, private equity, UCITS, and property. The financial terms of the agreement was not yet disclosed.

Prime Rate Capital Management provides liquidity funds named Qualifying Money Market Funds to the corporate and institutional clients having assets worth £1.5 billion ($2.4 billion). These funds are rated AAA by both Fitch Ratings and Standard & Poor's. Moreover, Federated has AAA-rated money market funds worth $189.0 billion and these funds occupy 12.0% of the U.S. market share.

Through this acquisition, Federated aims at future growth and global expansion. Prime Rate Capital's qualified team, astute strategies and superior liquidity management will be integrated into Federated's money market business. Therefore, with the addition of euro, sterling and dollar-denominated UCITS products, Federated will be positioned well to prosper in the market.

Moreover, Prime Rate Capital Management's headquarters will be retained in London, though the existing investment management team will be operating as a subsidiary of Federated Holdings (UK) Limited, a group company of Federated. Prime Rate Capital opted for acquisition based on Federated’s existing market position and its excellence in business. The company aims to help its clients and shareholders with the skilled managers of Federated’s money market products.