FII – Market expectations are for Uniform ROA to decline, but management is confident about their funds, costs, and market share

• Federated Investors, Inc. (FII:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with an 11.7x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their fund business, costs, and market share
• Specifically, management is confident 15% of their funds are in the top quartile and 65% are in the top half, and they are confident they realized lower stock compensation expenses in Q2. Furthermore, they are confident customers recognize them as a go-to player in the money market space.