Nvests earnings were down 10% for the second quarter ended June 30, marking the second consecutive quarter of comparative underperformance relative to the same period a year ago.
Management and advisory fees were down 8% to $145 million, compared with the same period in 1998; the fees dropped 2% in the first quarter.
Nvest Chairman Peter Voss attributed the revenue drop to the underperformance of value investing during the past year. About 60% of Nvests $61 billion in equity under management is in the value style, according to Nvest spokesman Laurence Dwyer.
Also, less real estate investment activity in the last quarter led to reduced real estate transaction fees, according to company officials. Nvests mutual fund assets have dropped to $36 billion from $38 billion a year ago. Total assets under management rose to $136 billion on June 30 from a first-quarter dip to $133 billion on March 31, compared with $135 billion Dec. 31.