Feb. 12 (Bloomberg) — Fidelity Investments, the second-largest U.S. mutual fund company, reported a 13 percent increase in operating income last year as the rally in equities boosted assets.
Earnings, excluding costs such as interest and taxes, increased to $2.6 billion from $2.3 billion in 2012, the Boston- based company said today in its annual report to shareholders. Revenue climbed 7.9 percent to $13.6 billion.
"Higher customer asset levels coupled with product, service, and productivity enhancements resulted in impressive performance for Fidelity," Edward C. Johnson III, chairman and chief executive officer, said in the statement.
While the amount of money Fidelity manages rose, the firm lost ground to rivals including Vanguard Group Inc. as clients withdrew a net $1.1 billion from its managed products. Abigail Johnson, the chairman's daughter and president of the firm founded by her grandfather, is expected to announce an internal replacement in the coming weeks for Ronald P. O'Hanley, head of the asset-management unit. She said in January that O'Hanley will leave the company at the end of this month.
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