Asset manager Waddell & Reed Financial Inc (WDR.N) reported a quarterly profit that beat estimates as higher investment management fees offset a rare outflow of funds.
The company reported net quarterly outflows of $165 million, the first in at least two years. Larger peer T. Rowe Price Group Inc (TROW.O) also posted an outflow of customer cash in its latest results.
However, higher investment management fees helped boost operating revenue and profit above Wall Street expectations.
Net income from continuing operations rose to $52.4 million, or 61 cents per share, in the fourth quarter from $39.4 million, or 46 cents per share, a year earlier.
Total operating revenue rose to $302.9 million, helped by a 12 percent increase in investment management fees.
Analysts on average expected the company to earn 58 cents per share on revenue of $301 million, according to Thomson Reuters I/B/E/S.
Assets under management rose 16 percent to a new high of $96.4 billion as of December 31, while small outflows across distribution channels added up to a total outflow of $165 million for the quarter.
(Reporting by Aman Shah in Bangalore; Editing by Sreejiraj Eluvangal)