In light of low money market fund yields, Federated Investors voluntarily waived $36.5 million in fees last quarter "to maintain positive or zero net yields." In its third quarter earnings report, released Thursday, the Pittsburgh-based money fund giant also revealed that AUM dipped two percent from $401.8 billion on June 30, 2009 to $392.3 billion on September 30, thanks largely to an eight percent drop in its money market assets (from $346.4 billion to $318.1 billion).

Yet Federated's fixed income and equity assets both climbed 11 percent last quarter, to $32 billion and $29.1 billion, respectively. And its overall and money market assets are both up substantially year-over-year: total AUM climbed 14 percent from $344 billion on September 30, 2008 to $392.3 billion on September 30, 2009 and money market assets climbed 11 percent from $287.8 billion at the end of Q3 2008 to $318.1 billion at the end of Q3 2009.

Those shifts may not surprise fundsters, as recent quarters have seen money market yields stay low even as the equity markets recover.

Federated's income from continuing operations rose slightly year-over-year, from $56.2 million for Q3 2008 to $57.0 million for Q3 2009. 

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