UPDATE 1-Eaton Vance profit rises on strong inflows

Tue Nov 20, 2012 9:48am EST

* 4th-quarter EPS $0.45 vs $0.40 a year earlier

* 4th-quarter adj EPS $0.53 vs est $0.48

* Net inflows of $2.2 billion in 4th-quarter

Nov 20 (Reuters) - Asset manager Eaton Vance Corp's fourth-quarter profit breezed past analysts' estimates, as investors put more money into its funds.

Net income attributable to shareholders rose to $53.1 million, or 45 cents per share, from $46.8 million, or 40 cents per share, a year earlier.

Excluding items, the Boston-based company earned 53 cents per share.

Analysts on average expected the company to earn 48 cents per share, according to Thomson Reuters I/B/E/S.

For the quarter ended Oct. 31, Eaton Vance reported net inflows of $2.2 billion into long-term funds and separate accounts, compared with net outflows of $2.7 billion in the year-earlier quarter and $1.4 billion in the third quarter.

Separate accounts include money managed outside of funds for institutional clients and high net-worth individuals.

Traditional asset managers like Eaton Vance that earn fees on equity funds have seen their profits pressured over the past year as cautious investors move their money to lower-fee funds.

Fourth-quarter revenue rose 4 percent to $309.9 million, while investment advisory and administration fees increased 6 percent, helped by a higher fee rate.

Assets under management rose to $199.5 billion as on Oct. 30, from $192.9 billion as on July 31.

Rival money managers Waddell & Reed Financial Inc and Affiliated Managers Group also posted estimate-topping profits when they reported quarterly results last month.

Eaton Vance shares, which on Monday touched their highest in over a year, were up 2 percent at $30.78 in early trade on the New York Stock Exchange on Tuesday.

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