PITTSBURGH (AP) -- Federated Investors Inc. said Thursday its third-quarter net income jumped as demand for stock investments remained brisk.
The big asset-management company also announced a dividend of $1.75 per share, comprised of a 24-cent quarterly dividend and a $1.51 special dividend. It is payable on Nov. 15 to shareholders of record as of Nov. 8.
Federated reported its net income rose to $55.8 million, or 54 cents per share, in the July-September quarter, up 46 percent from $38.3 million, or 37 cents per share, in the third quarter of 2011.
Third-quarter revenue increased 11 percent, to $238.5 million, mainly because the amount of fee waivers granted by the company for some money-market mutual funds declined by $19.4 million.
When interest rates are very low, money-market fund returns are so small that firms often waive their fees so that customers' net returns aren't negative. In the latest quarter, Federated said, the returns on money-market funds improved.
The company's total managed assets were $364.1 billion as of Sept. 30, up 3.5 percent from $351.7 billion a year earlier.
Shares of Pittsburgh-based Federated Investors edged up 7 cents to close at $20.69 in regular trading. They advanced $1.06, or 5 percent, to $21.75 in extended trading after the company announced its quarterly results.
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