Eaton Vance IPO erodes 2Q profits

Eaton Vance Corp. reported a 42% fall in profits for the second quarter today. Costs from an initial public offering of a closed-end fund lowered net income to $23.1 million in the second quarter, compared to $39.9 million in the same period last year. The Eaton Vance Tax-Managed Global Diversified Equity Income Fund’s IPO rang up $46.3 million in structuring fees, plus $8.1 million in sales based incentives. Compensation expenses also increased 35% in the quarter, eating away at profits. Operating income slid 48%, falling to $36.2 million from $60.6 million. Revenues of the Boston-based money manager, however, gained 23%, reaching $260.2 million, compared to $211.8 million in 2006. Assets under management grew to $150.0 billion, up 26% from the second quarter of 2006, helped fuel revenue increases.