BOSTON, Feb 27 (Reuters) - The parent of Fidelity Investments said on Tuesday operating profit in 2017 rose 54 percent to $5.3 billion even as customers continued to yank billions of dollars from its actively managed mutual funds.
FMR LLC, the privately held parent of Fidelity, said assets under management rose 15 percent to $2.45 trillion, lagging the 22 percent gains at rivals BlackRock Inc and T. Rowe Price Group Inc. Fidelity said it was hurt by $47 billion in net withdrawals from its stable of actively managed stock funds.
FMR said its revenue rose 13.7 percent to $18.2 billion for 2017.
“While active equity mutual fund flows remained under pressure across the financial services industry, Fidelity continued to grow its non–mutual fund, actively managed assets, which have increased from $18 billion at the end of 2009 to $124 billion at the end of 2017,” according to the company’s annual report.
Despite the outflows, Fidelity funds outperformed most of their peers. In aggregate, Fidelity said its mutual funds beat 78 percent, 77 percent and 76 percent of their industry peers for the trailing one-, three-, and five-year periods, respectively. (Reporting by Ross Kerber Editing by Phil Berlowitz)