Fidelity Investments' operating profit rose 5 percent last year compared with 2008, and the nation's largest mutual fund company saw fund performance improve.

Boston-based Fidelity is privately held and doesn't report quarterly financial numbers. But Fidelity says in its annual report that operating income last year was $2.51 billion, excluding interest expenses and taxes.

That's up from $2.39 billion in 2008, when markets fell sharply. A market turnaround last year helped lift results.

But Fidelity has also cut thousands of jobs the past couple of years, and it reported a nearly 11 percent decline in revenue last year, to $11.48 billion.

Fidelity's mutual funds performed better than 74 percent of their competitors last year, up from 56 percent in 2008.