Waddell & Reed Financial reported a 5% increase in third-quarter earnings, earning $24.5 million ($.30 per share), compared to $23.4 million ($.29) one year earlier.

The recent gain was attributed to $1.8 million ($.02 per share) in tax benefits from the legal bills the company did not deduct previously. The company also reported that sales went up by 27% in its investment adviser network of 2,443 brokers.

Total assets under management increased to $40.7 billion from $39.1 billion at the beginning of the quarter.

 

Hank Herman, CEO of Waddell & Reed, said in a conference call that it was the first time in 10 years that adviser sales in the third quarter, typically a slow period, topped those of the second quarter, The Kansas City Star reports.

The firm also saw a slight increase in net flows, with $40.7 billion under management by the end of the quarter, up from $39.1 billion at its start.

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