Eaton Vance Corp. reported a 39% profit increase for the second quarter 2004 over the second quarter 2003, with the firm’s separately managed account (SMA) and mutual fund units helping lead the way.

A 27% increase in mutual fund service fee revenues and a 27% increase in revenue from the consolidation of two Eaton-controlled investment companies helped the company, as did a 42% jump in investment advisor fees to $194.9 million. This offset a huge increase in operating expenses of 28%, which the company said stemmed from a 47% increase in compensation, much of which was sales-driven commission incentives.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.