Eaton Vance 2nd-quarter Profit Falls 52 Percent

Year over year, assets under management fell 20 percent, to $127.2 billion, from $159.1 billion.

Distribution and underwriter fees decreased 42 percent to $18.7 million, due to a decrease in average fund assets that pay these fees. Service fee revenue slid 33 percent to $25.6 million, due to a decrease in average fund assets subject to service fees.

The revenue decline was partially offset by a 14 percent reduction in operating expenses from last year, to $153.3 million. That included an 11 percent cut in compensation costs, mostly reflecting decreases in bonuses, commissions and stock-based compensation.

A total of $800 million flowed into Eaton Vance's long-term funds and separate accounts during the quarter.

In afternoon trading, Eaton Vance shares fell $3.51, or 12 percent, to $25.83. Volume was heavier than normal trading. The stock has moved between $11.86 and $44.40 in the past 52 weeks, and began the day up about 39 percent since the start of the year.