Fidelity Investments has announced that it earned $1.3 billion last year, the second-highest full-year profit in the Boston fund company's history.
Fidelity's flagship money management unit performed the best as strong market conditions and an expanded analyst roster bolstered it, the company said on Thursday. Its stock funds performed better than 65% of their peers, an improvement from 2004 when these portfolios did better than only 50% of competitors' funds.
Average assets under management grew by 10%, to $1.1 trillion, and net income grew 20% on revenues of $11.1 billion. However, investors pulled a net $6.8 billion out of Fidelity stock funds last year.
Fidelity said the strong results encompassed its brokerage arm and benefits administration unit. Fidelity Brokerage Co. boosted assets under administration by 23% to $1.4 trillion, and the benefits administration business added 1,900 plans and 1.5 million participants to boost administered assets by 11%.
