UPDATE 1-Eaton Vance profit misses estimates due to higher expenses
* Third-quarter net profit/share $0.18 vs $0.43 year ago
* Adjusted earnings/share $0.52 vs est. $0.54
* Net inflows of $8.8 bln vs outflows of $1.4 bln year ago
* Assets under management $268.8 bln as on July 31
Aug 21 (Reuters) - Asset manager Eaton Vance Corp reported a 30 percent rise in quarterly adjusted profit but narrowly missed analysts' estimates due to significant non-operating expenses related to the retirement of its debt.
Net income attributable to shareholders more than halved to $23.2 million, or 18 cents per share, in the quarter ended July 31 from $50.2 million, or 43 cents per share, a year earlier.
The fall in net income was mainly due to $52.9 million in costs incurred on retirement of debt. Expenses rose 14 percent in the quarter to $231.5 million.
Excluding items, net income was $66.5 million, or 52 cents per share. Analysts on average were expecting Eaton Vance to earn 54 cents per share, according to Thomson Reuters I/B/E/S.
Net inflows into long-term funds and separate accounts were $8.8 billion in the quarter compared with net outflows of $1.4 billion a year earlier.
Separate accounts are those through which the company offers customized investment strategies to clients such as institutions and high net-worth individuals.
Outflows from Eaton Vance's equity funds were $129 million compared with $3.11 billion a year earlier. Assets under management increased 39 percent to $268.8 billion as of July 31.
Shares of Eaton Vance, which have fallen about 11 percent in the three months to Tuesday close, were slightly down at $39.00 in morning trading on the New York Stock Exchange.
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