Rising fees lift Eaton Vance revenue
Investment manager Eaton Vance Corp. said yesterday that its second-quarter profit surged 74 percent as assets under management reached a record high, pushing fees up and resulting in a 19 percent increase in revenue.
The Boston-based company said net income rose to $62.5 million, or 50 cents per share, in the three months ended April 30 from $36 million, or 29 cents per share, a year ago. Revenue rose to $325.8 million from $273 million a year ago.
Analysts surveyed by FactSet expected adjusted earnings of 46 cents per share.
Assets under management as of April 30 were $203 billion, a record high. That’s a 15 percent increase from the $176.2 billion of managed assets as of April 30, 2010.
Increased assets pushed investment advisory and administration fees up to $251.7 million from $212.1 million.
Distribution and underwriter fees increased to $26.1 million from $24.7 million. Service fee revenue increased 6 percent to $36.5 million due to an increase in average fund assets subject to service fees.
Other revenue, which increased to $11.5 million from $1.7 million, included $7.3 million of net gains on investments.