Fidelity profit jumps 13 percent in 2013 as outflows decline
BOSTON Feb 12 (Reuters) - Fidelity Investments, the No. 2 U.S. mutual fund company, said on Wednesday that operating profit rose 13 percent to $2.6 billion last year as clients pulled less money from its funds.
Boston-based Fidelity said managed products, including mutual funds, institutional offerings and funds packaged within managed accounts, posted net outflows of $1.1 billion for the year, compared with outflows of $5.3 billion in 2012.
Operating revenue jumped 8 percent to $13.6 billion on higher asset-based fees and improved brokerage results. But Fidelity said results were dampened by persistent pricing pressures and extremely low interest rates.
Fidelity, closely held by the family of Chairman Ned Johnson, is known for its stable of mutual funds, including the $100 billion-plus Contrafund.