Fidelity Investments reported new profit of $1.3 billion in 2005, up 20% from $1.1 billion in 2004, according to reports. It was the second-most profitable year in firm's 60-year history.
Funds that Fidelity manages fell 46% to $17.4 billion, primarily due to net outflows of $6.8 billion, the Associated Press reports. However, funds for which Fidelity acts as a custodian in brokerage and retirement accounts rose 17%, helping to boost Fidelity's total assets by 9%, to $1.2 trillion. Fidelity has not been delivering strong performance in its mutual funds in recent years, according to the AP, which may be a reason its investment management assets are languishing.