(Reuters) - Asset manager Eaton Vance Corp (EV.N) posted a lower third-quarter profit as customers withdrew money from its funds.
Traditional asset managers like Eaton Vance that earn fees on equity funds have seen their profits pressured as cautious investors move their money to safer, lower-fee funds.
Money manager rival Legg Mason Inc (LM.N) also reported a net outflow for its June quarter last month.
Boston-based Eaton Vance has also been hurt by weak performance at its Large-Cap Value Fund. Customers pulled $3.8 billion from the fund in the quarter.
“Accelerating outflows from our large-cap value strategy caused net flows to turn negative in the third quarter of fiscal 2012,” CEO Thomas Faust said in a statement.
Eaton Vance reported $1.4 billion in net outflows from its long-term funds and separate accounts. The company reported $600 million in net inflows in the second quarter.
For the third quarter, net income attributable to shareholders fell to $50.2 million, or 43 cents per share, from $68.1 million, or 55 cents per share, a year earlier.
Analysts on average expected the money manager to earn 47 cents per share, excluding items, according to Thomson Reuters I/B/E/S.
Assets under management were $192.9 billion at July 31, down 2 percent from $197.5 billion at the end of April.
Eaton Vance’s shares closed at $27.29 on the New York Stock Exchange on Tuesday.
(Reporting by Jochelle Mendonca in Bangalore; Editing by Anil D‘Silva)
This story was refiled to remove reference to T. Rowe Price Group in the third paragraph as T. Rowe did not report net outflows