2014

Eaton Vance Corp. Report for the Three and Nine Month Periods Ended July 31, 2012

BOSTON, Aug. 22, 2012 /PRNewswire/ -- Eaton Vance Corp. (NYSE: EV) today reported adjusted earnings per diluted share(1) of $0.43 for the third quarter of fiscal 2012 compared to adjusted earnings per diluted share of $0.45 in the second quarter of fiscal 2012 and $0.55 in the third quarter of fiscal 2011.

As determined under U.S. generally accepted accounting principles ("GAAP"), the Company earned $0.43 per diluted share in the third quarter of fiscal 2012, $0.44 in the second quarter of fiscal 2012 and $0.55 in the third quarter of fiscal 2011.  Adjusted earnings differed from GAAP earnings in the second quarter of fiscal 2012 due to adjustments in connection with increases in the estimated redemption value of non-controlling interests in affiliates redeemable at other than fair value, which reduced GAAP earnings by $0.01 per diluted share.

Adjusted earnings per diluted share were $1.35 in the nine months ended July 31, 2012 compared to $1.52 in the nine months ended July 31, 2011. The Company's GAAP earnings per diluted share were $1.27 and $1.35, respectively, for the compared periods.  The Company's adjusted and GAAP earnings per diluted share were increased $0.01 and $0.03 in the first nine months of fiscal 2012 and 2011, respectively, by gains related to the sale of the Company's equity interest in Lloyd George Management (BVI) Limited in the second quarter of fiscal 2011.

Net outflows of $1.4 billion from long-term funds and separate accounts in the third quarter of fiscal 2012 compare to net inflows of $0.6 billion and $1.9 billion in the second quarter of fiscal 2012 and the third quarter of fiscal 2011, respectively.  Net outflows from Eaton Vance large-cap value mandates totaled $3.8 billion in the third quarter of fiscal 2012, more than offsetting the $2.4 billion of net inflows into other long-term strategies in the period.

On August 6, 2012, the Company completed its purchase of a 49 percent interest in Hexavest Inc., a Quebec corporation providing discretionary management of equity and tactical asset allocation strategies to institutions in Canada, the United States, Europe and the Asia Pacific region using a predominantly top-down investment style.  As of the close of the transaction, Hexavest managed $11.0 billion of client assets invested primarily in global and global ex-U.S. equity mandates.

"Accelerating outflows from our large-cap value strategy caused net flows to turn negative in the third quarter of fiscal 2012," said Thomas E. Faust Jr., Chairman and Chief Executive Officer.  "Improving large-cap value performance and a robust pipeline of new institutional and sub-advisory opportunities give reason for optimism regarding flow trends in the coming months."

Assets under management were $192.9 billion on July 31, 2012, a decrease of 2 percent from the $197.5 billion of managed assets on April 30, 2012 and down 3 percent from managed assets of $199.0 billion on July 31, 2011. Assets under management on July 31, 2012 included $110.3 billion in long-term funds, $40.3 billion in institutional separate accounts, $14.7 billion in high-net-worth separate accounts, $27.4 billion in retail managed accounts and $0.2 billion in cash management fund assets. Average assets under management were $192.8 billion in the third quarter of fiscal 2012, down 1 percent from $195.6 billion in the second quarter of fiscal 2012 and down 4 percent from $201.2 billion in the third quarter of fiscal 2011.  The sequential decrease in ending assets under management in the third quarter of fiscal 2012 primarily reflects long-term net outflows of $1.4 billion and market price declines of $3.1 billion.

As shown in Table 2 (Attachment 6), gross sales and other inflows were $10.9 billion in the third quarter of fiscal 2012, down 17 percent from $13.2 billion in the second quarter of fiscal 2012 and down 20 percent from $13.7 billion in the third quarter of fiscal 2011. Gross redemptions and other outflows were $12.4 billion in the third quarter of fiscal 2012, down 2 percent from $12.7 billion in the second quarter of fiscal 2012 and up 5 percent from $11.8 billion in the third quarter of fiscal 2011. 

Attachments 5 and 6 summarize the Company's assets under management and asset flows by investment mandate and investment vehicle.

 

Financial Highlights

















Three Months Ended



(in thousands, except per share figures)











July 31,

April 30,

July 31,



2012 

2012

2011









Revenue

$

298,771

$

304,770

$

327,056

Expenses


203,755


205,959


211,629

Operating income


95,016


98,811


115,427









Operating margin


32%


32%


35%









Non-operating income (expense)


1,875


(855)


(3,365)

Income taxes


(34,379)


(35,164)


(43,320)

Equity in net income (loss) of affiliates, net of tax


175


(22)


194

Net income


62,687


62,770


68,936

Net income attributable to non-controlling








 and other beneficial interests


(12,481)


(9,900)


(868)

Net income attributable to  








Eaton Vance Corp. shareholders

$

50,206

$

52,870

$

68,068

Adjusted net income attributable to Eaton  








Vance Corp. shareholders(1)

$

51,002

$

53,967

$

68,306









Earnings per diluted share

$

0.43

$

0.44

$

0.55









Adjusted earnings per diluted share(1)

$

0.43

$

0.45

$

0.55

 

Third Quarter Fiscal 2012 vs. Second Quarter Fiscal 2012

Revenue in the third quarter of fiscal 2012 decreased 2 percent to $298.8 million from revenue of $304.8 million in the second quarter of fiscal 2012.  Investment advisory and administrative fees were down 2 percent in the third quarter of fiscal 2012 compared to the second quarter of fiscal 2012, primarily due to a 1 percent decrease in average assets under management.  Distribution and service fees revenues decreased 3 percent on a combined basis, reflecting a declining share of managed assets in fund share classes that are subject to such fees.

Expenses decreased 1 percent to $203.8 million in the third quarter of fiscal 2012 from $206.0 million in the second quarter of fiscal 2012, reflecting decreases in compensation, declines in certain distribution expenses and reduced amortization of deferred sales commissions, offset by increases in fund expenses and other expenses. The decrease in compensation expense primarily reflects decreases in sales- and operating income-based incentives, as well as lower severance expense. Gross sales and other inflows, which drive sales-based incentives, were down 17 percent in the third quarter of fiscal 2012 compared to the second quarter of fiscal 2012.  Pre-bonus adjusted operating income, which drives operating income-based incentives, was down 4 percent for the same period. The decrease in distribution expense reflects a decrease in intermediary marketing support payments to our distribution partners driven by a decrease in sales and managed assets, partly offset by increases in promotional expenses. The decrease in amortization of deferred sales commissions largely reflects changes in product mix away from fund share classes to which these expenses apply.  Fund expenses increased 9 percent from the second quarter of 2012 due to higher subsidies on start-up funds and increased non-advisory expenses borne by the Company on funds for which we are paid an all-in fee.  The 3 percent increase in other expenses reflects increases in spending related to travel and information technology to support the Company's product and infrastructure initiatives.

Operating income was down 4 percent to $95.0 million in the third quarter of fiscal 2012 from $98.8 million in the second quarter of fiscal 2012.

Non-operating income (expense) contributed $1.9 million to income before taxes in the third quarter of fiscal 2012, compared to a reduction of $0.9 million in the second quarter of fiscal 2012.  The improved non-operating income (expense) is primarily attributable to a $4.0 million increase in gains and other investment income recognized by the Company's consolidated collateralized loan obligation ("CLO") entity, offset by a $0.9 million decline in gains and other investment income earned on the Company's investments in sponsored products.

The Company's effective tax rate, calculated as a percentage of income before income taxes and equity in net income of affiliates, was 35.5 percent in the third quarter of fiscal 2012. Excluding the impact of other income (expense) associated with the Company's consolidated CLO entity borne by other beneficial interest holders, the Company's effective tax rate was approximately 38.2 percent for the quarter. 

Net income attributable to non-controlling and other beneficial interests totaled $12.5 million in the third quarter of fiscal 2012 and $9.9 million in the second quarter of fiscal 2012. As shown in Attachment 3, the increase can be primarily attributed to an improvement in the financial performance of the Company's consolidated CLO entity. Included in net income attributable to non-controlling and other beneficial interests in the second quarter of fiscal 2012 were $1.1 million of non-controlling interest value adjustments that related primarily to the profit growth of our subsidiary Parametric Risk Advisors based on an April 30 measurement date.

Third Quarter Fiscal 2012 vs. Third Quarter Fiscal 2011

Revenue in the third quarter of fiscal 2012 decreased 9 percent to $298.8 million from revenue of $327.1 million in the third quarter of fiscal 2011.  Investment advisory and administrative fees were down 7 percent due to a 4 percent decrease in average assets under management and modestly lower average effective fee rates. Distribution and service fees were, on a combined basis, down 17 percent, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.

Expenses decreased 4 percent to $203.8 million in the third quarter of fiscal 2012 from $211.6 million in the third quarter of fiscal 2011, reflecting lower distribution and service fees, reduced amortization of deferred sales commissions and lower fund expenses, offset by an increase in other expenses. The decreases in distribution and service fee expenses and amortization of deferred sales commissions largely reflect changes in product mix away from fund share classes to which these expenses apply. The decrease in fund-related expenses can be attributed primarily to lower sub-advisory expenses. The increase in other expenses is attributable primarily to higher spending for travel and other professional services. Compensation expense was substantially unchanged year-over-year, as decreases in sales- and operating income-based incentives were offset by higher employee headcount and increased salaries and stock-based compensation. Gross sales and other inflows, which drive sales-based incentives, were down 20 percent in the third quarter of fiscal 2012 compared to the third quarter of fiscal 2011, while pre-bonus adjusted operating income, which drives operating-income based incentives, was down 17 percent over the same period.

Operating income was down 18 percent to $95.0 million in the third quarter of fiscal 2012 from $115.4 million in the third quarter of fiscal 2011.

Non-operating income (expense) contributed $1.9 million to income before taxes in the third quarter of fiscal 2012 compared to a reduction of $3.4 million in the third quarter of fiscal 2011. The improved non-operating income (expense) reflects an $11.4 million increase in gains and other investment income recognized by the Company's consolidated CLO entity, offset by a $5.7 million decrease in gains and other investment income earned on the Company's investments in sponsored products. The Company's gains and other investment income in the third quarter of fiscal 2011 included a $1.9 million gain recognized upon the sale of the Company's equity interest in a non-consolidated CLO entity. 

Net income attributable to non-controlling and other beneficial interests totaled $12.5 million in the third quarter of fiscal 2012 and $0.9 million in the third quarter of fiscal 2011. As shown in Attachment 3, the change can be primarily attributed to an improvement in the financial performance of the Company's consolidated CLO entity.

Balance Sheet Information

Cash and cash equivalents totaled $600.2 million on July 31, 2012, with no outstanding borrowings against the Company's $300.0 million credit facility.  On August 6, 2012, the Company paid $192.7 million to acquire its 49 percent equity interest in Hexavest Inc., sourced from cash on hand.  During the first nine months of fiscal 2012, the Company used $76.6 million to repurchase and retire approximately 3.0 million shares of its Non-Voting Common Stock under its repurchase authorization.  Approximately 5.0 million shares of the current 8.0 million share repurchase authorization remains unused.

Conference Call Information

Eaton Vance Corp. will host a conference call and webcast at 11:00 AM EDT today to discuss the financial results for the three and nine month periods ended July 31, 2012. To participate in the conference call, please call 877-407-0778 (domestic) or 201-689-8565 (international) and refer to "Eaton Vance Corp. Third Quarter Earnings." A webcast of the conference call can also be accessed via Eaton Vance's website, www.eatonvance.com

A replay of the call will be available for one week by calling 877-660-6853 (domestic) or 201-612-7415 (international) or by accessing Eaton Vance's website, www.eatonvance.com. Listeners to the telephone replay must enter the account number 286 and the confirmation code 398870.

About Eaton Vance Corp.

Eaton Vance Corp. is one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates offer individuals and institutions a broad array of investment strategies and wealth management solutions.  The Company's long record of providing exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors.  For more information about Eaton Vance, visit www.eatonvance.com.

Forward-Looking Statements

This news release may contain statements that are not historical facts, referred to as "forward-looking statements."  The Company's actual future results may differ significantly from those stated in any forward-looking statements, depending on factors such as changes in securities or financial markets or general economic conditions, client sales and redemption activity, the continuation of investment advisory, administration, distribution and service contracts, and other risks discussed from time to time in the Company's filings with the Securities and Exchange Commission.

(1) Although the Company reports its financial results in accordance with GAAP, management believes that certain non-GAAP financial measures, while not a substitute for GAAP financial measures, may be effective indicators of the Company's performance over time. Adjusted net income and adjusted earnings per diluted share reflect the add back of adjustments in connection with changes in the estimated redemption value of non-controlling interests in our affiliates redeemable at other than fair value ("non-controlling interest value adjustments"), closed-end structuring fees and other items management deems non-recurring or non-operating. See reconciliation provided in Attachment 2 for more information on adjusting items.



















Attachment 1


Eaton Vance Corp.

Summary of Results of Operations

(in thousands, except per share figures)

(unaudited)












































Three Months Ended


Nine Months Ended










% Change

% Change











July 31,

April 30,

July 31,

Q3 2012 to

Q3 2012 to


July 31,

July 31,

%





2012

2012

2011

Q2 2012

Q3 2011


2012

2011

Change

Revenue:






































Investment advisory and administrative fees

$

244,655

$

248,888

$

262,067

(2)

%

(7)

%


$

732,995

$

756,471

(3)

%


Distribution and underwriter fees


22,066


22,551


26,432

(2)


(17)




67,132


79,900

(16)



Service fees


30,760


32,065


37,426

(4)


(18)




95,124


111,249

(14)



Other revenue


1,290


1,266


1,131

2


14




3,896


3,663

6




Total revenue


298,771


304,770


327,056

(2)


(9)




899,147


951,283

(5)


Expenses:






































Compensation and related costs


94,700


97,566


94,713

(3)


-




288,949


288,920

-



Distribution expense


32,670


32,960


33,733

(1)


(3)




97,958


100,087

(2)



Service fee expense


28,165


28,088


32,222

-


(13)




84,926


94,331

(10)



Amortization of deferred sales commissions


4,593


5,533


8,503

(17)


(46)




15,946


28,496

(44)



Fund expenses


7,205


6,590


8,099

9


(11)




20,446


17,660

16



Other expenses


36,422


35,222


34,359

3


6




104,275


100,205

4




Total expenses


203,755


205,959


211,629

(1)


(4)




612,500


629,699

(3)


Operating income


95,016


98,811


115,427

(4)


(18)




286,647


321,584

(11)


Non-operating income (expense):



















Gains and other investment income, net


1,927


2,796


7,594

(31)


(75)




12,900


21,406

(40)



Interest expense


(8,525)


(8,412)


(8,414)

1


1




(25,350)


(25,239)

-



Other income (expense) of consolidated




















CLO entity:




















     Gains (losses) and other investment income, net

12,872


8,895


1,454

45


785




32,047


(9,695)

NM




     Interest expense


(4,399)


(4,134)


(3,999)

6


10




(12,844)


(9,546)

35




Total non-operating income (expense)


1,875


(855)


(3,365)

NM


NM




6,753


(23,074)

NM






















Income before income taxes and equity


















   in net income (loss) of affiliates

96,891


97,956


112,062

(1)


(14)




293,400


298,510

(2)


Income taxes


(34,379)


(35,164)


(43,320)

(2)


(21)




(104,730)


(119,179)

(12)


Equity in net income (loss) of affiliates, net of tax


175


(22)


194

NM


(10)




1,657


2,655

(38)


Net income


62,687


62,770


68,936

-


(9)




190,327


181,986

5


Net income attributable to non-controlling


















   and other beneficial interests


(12,481)


(9,900)


(868)

26


NM




(39,980)


(13,904)

188


Net income attributable to


















   Eaton Vance Corp. Shareholders

$

50,206

$

52,870

$

68,068

(5)


(26)



$

150,347

$

168,082

(11)






















Earnings per share :


















Basic

$

0.44

$

0.46

$

0.58

(4)


(24)



$

1.30

$

1.42

(8)



Diluted

$

0.43

$

0.44

$

0.55

(2)


(22)



$

1.27

$

1.35

(6)






















Weighted average shares outstanding:

















Basic


112,110


112,418


115,574

-


(3)




112,354


116,191

(3)



Diluted


114,591


115,881


120,543

(1)


(5)




115,031


121,566

(5)






















Dividends declared per share

$

0.19

$

0.19

$

0.18

-


6



$

0.57

$

0.54

6


 


 


















Attachment 2

Eaton Vance Corp.

Reconciliation of net income attributable to Eaton Vance Corp. shareholders

and earnings per diluted share to adjusted net income attributable to Eaton Vance

 Corp. shareholders and adjusted earnings per diluted share

(unaudited)


























Three Months Ended


Nine Months Ended


July 31,

April 30,

July 31,


July 31,

July 31,

(in thousands, except per share figures)

2012

2012

2011


2012

2011













      Net income attributable to Eaton Vance












         Corp. shareholders

$

50,206

$

52,870

$

68,068


$

150,347

$

168,082













      Non-controlling interest value adjustments


796


1,097


238



9,996


21,310

























      Adjusted net income attributable to Eaton












         Vance Corp. shareholders

$

51,002

$

53,967

$

68,306


$

160,343

$

189,392

























      Earnings per diluted share

$

0.43

$

0.44

$

0.55


$

1.27

$

1.35













      Non-controlling interest value adjustments


-


0.01


-



0.08


0.17

























      Adjusted earnings per diluted share

$

0.43

$

0.45

$

0.55


$

1.35

$

1.52


 


























Attachment 3

Eaton Vance Corp.

Reconciliation of net income attributable

to non-controlling and other beneficial interests

(unaudited)































Three Months Ended


Nine Months Ended


July 31,

April 30,

July 31,


July 31,

July 31,

(in thousands)

2012

2012

2011


2012

2011
















Consolidated funds

$

(839)

$

(1,182)

$

(970)


$

(3,167)

$

(5,629)















Majority-owned subsidiaries


(3,354)


(3,751)


(3,158)



(10,465)


(9,094)















Consolidated CLO entity


(7,492)


(3,870)


3,498



(16,352)


22,129
















Non-controlling interest value adjustments


(796)


(1,097)


(238)



(9,996)


(21,310)
















Net income attributable to non-controlling














interests and other beneficial interests

$

(12,481)

$

(9,900)

$

(868)


$

(39,980)

$

(13,904)

 


 







Attachment 4


Eaton Vance Corp.


Balance Sheet


(in thousands, except per share figures)


(unaudited)








July 31,




October 31,




2012




2011


Assets
























Cash and cash equivalents

$

600,182



$

510,913


Investment advisory fees and other receivables


127,303




130,525


Investments


285,986




287,735


Assets of consolidated collateralized loan obligation ("CLO") entity:








          Cash and cash equivalents


33,380




16,521


          Bank loans and other investments


458,392




462,586


          Other assets


1,150




2,715


Deferred sales commissions


20,370




27,884


Deferred income taxes


47,858




41,343


Equipment and leasehold improvements, net


57,732




67,227


Intangible assets, net


61,227




67,224


Goodwill


154,636




142,302


Other assets


75,562




74,325


   Total assets

$

1,923,778



$

1,831,300










Liabilities, Temporary Equity and Permanent Equity
















Liabilities:
















Accrued compensation

$

110,070



$

137,431


Accounts payable and accrued expenses


57,143




51,333


Dividend payable


21,875




21,959


Debt


500,000




500,000


Liabilities of consolidated CLO entity:








          Senior and subordinated note obligations


477,096




477,699


          Other liabilities


822




5,193


Other liabilities


91,077




75,557


   Total liabilities


1,258,083




1,269,172


Commitments and contingencies
















Temporary Equity:








Redeemable non-controlling interests


113,080




100,824


          Total temporary equity


113,080




100,824










Permanent Equity:








Voting common stock, par value $0.00390625 per share:








   Authorized, 1,280,000 shares








   Issued, 413,167 and 399,240 shares, respectively


2




2


Non-voting common stock, par value $0.00390625 per share:








   Authorized, 190,720,000 shares








   Issued, 114,776,913 and 115,223,827 shares, respectively


448




450


Notes receivable from stock option exercises


(3,888)




(4,441)


Accumulated other comprehensive income


2,630




1,340


Appropriated retained earnings (deficit)


12,485




(3,867)


Retained earnings


540,047




466,931


   Total Eaton Vance Corp. shareholders' equity


551,724




460,415


Non-redeemable non-controlling interests


891




889


   Total permanent equity


552,615




461,304


Total liabilities, temporary equity and permanent equity

$

1,923,778



$

1,831,300










 


 













Attachment 5

 Eaton Vance Corp.

 Table 1

 Net Flows by Investment Mandate(1)

 (in millions) (unaudited)



















Three Months Ended


Nine Months Ended



July 31,


April 30,


July 31,


July 31,


July 31,



2012 


2012


2011


2012


2011 

 Equity assets - beginning of period(2)

$

114,903


$

110,834


$

122,740


$

108,859


$

 107,500 


Sales and other inflows


4,604



6,817



7,984



17,735



 23,829 


Redemptions/outflows


(7,656)



(7,897)



(7,564)



(23,234)



 (21,853)


Net flows


(3,052)



(1,080)



420



(5,499)



 1,976 


Assets acquired


-



-



-



-



 352 


Exchanges


(19)



(6)



(25)



(23)



 70 


Market value change


(3,237)



5,155



(6,080)



5,258



 7,157 

 Equity assets - end of period

$

108,595


$

114,903


$

117,055


$

108,595


$

 117,055 

















 Fixed income assets - beginning of period

46,891



45,514



43,066



43,708



 46,119 


Sales and other inflows


2,886



3,626



2,404



9,139



 7,909 


Redemptions/outflows


(1,973)



(2,276)



(2,223)



(6,702)



 (9,270)


Net flows


913



1,350



181



2,437



 (1,361)


Exchanges


30



-



7



70



 (278)


Market value change


364



27



559



1,983



 (667)

 Fixed income assets - end of period

$

48,198


$

46,891


$

43,813


$

48,198


$

 43,813 

















 Floating-rate income assets -  beginning















of period


24,847



24,376



24,224



24,322



 20,003 


Sales and other inflows


2,091



1,662



2,207



5,212



 7,767 


Redemptions/outflows


(1,535)



(1,451)



(977)



(4,274)



 (3,002)


Net flows


556



211



1,230



938



 4,765 


Exchanges


5



27



2



24



 182 


Market value change


(163)



233



130



(39)



 636 

 Floating-rate income assets - end of period

$

25,245


$

24,847


$

25,586


$

25,245


$

 25,586 

















 Alternative assets -  beginning of period

10,506



10,449



11,860



10,646



 10,482 


Sales and other inflows


1,342



1,121



1,068



3,558



 4,320 


Redemptions/outflows


(1,201)



(1,035)



(1,044)



(3,428)



 (3,077)


Net flows


141



86



24



130



 1,243 


Exchanges


(13)



(23)



(21)



(84)



 (76)


Market value change


(34)



(6)



(102)



(92)



 112 

 Alternative assets - end of period

$

10,600


$

10,506


$

11,761


$

10,600


$

 11,761 

















 Long-term assets - beginning of period

197,147



191,173



201,890



187,535



 184,104 


Sales and other inflows


10,923



13,226



13,663



35,644



 43,825 


Redemptions/outflows


(12,365)



(12,659)



(11,808)



(37,638)



 (37,202)


Net flows


(1,442)



567



1,855



(1,994)



 6,623 


Assets acquired


-



-



-



-



 352 


Exchanges


3



(2)



(37)



(13)



 (102)


Market value change


(3,070)



5,409



(5,493)



7,110



 7,238 

 Total long-term assets - end of period

$

192,638


$

197,147


$

198,215


$

192,638


$

 198,215 

















 Cash management fund assets
















end of period


220



340



815



220



 815 

 Total assets under management -
















end of period

$

192,858


$

197,487


$

199,030


$

192,858


$

 199,030 

















(1)  Includes funds and separate accounts.












(2)  Includes balanced accounts holding income securities.











 














Attachment 6

Eaton Vance Corp.

Table 2

Net Flows by Investment Vehicle

(in millions) (unaudited)

 




Three Months Ended


Nine Months Ended




July 31,


April 30,


July 31,


July 31,


July 31,




2012


2012


2011


2012


2011

Long-term fund assets -

















beginning of period


$

114,029


$

112,664


$

122,886


$

111,705


$

113,978


Sales and other inflows



6,266



6,648



7,293



19,819



26,840


Redemptions/outflows



(8,554)



(7,818)



(7,225)



(24,483)



(23,192)


Net flows



(2,288)



(1,170)



68



(4,664)



3,648


Exchanges



3



(2)



(37)



(13)



(105)


Market value change



(1,487)



2,537



(2,941)



3,229



2,455

Long-term fund assets - end of period

$

110,257


$

114,029


$

119,976


$

110,257


$

119,976


















Institutional separate account assets -

















 beginning of period



40,883



38,726



38,264



38,003



34,593


Sales and other inflows



2,262



3,261



4,336



7,347



9,396


Redemptions/outflows



(1,970)



(2,794)



(2,522)



(6,979)



(7,379)


Net flows



292



467



1,814



368



2,017


Exchanges



-



40



-



11



(19)


Market value change



(890)



1,650



(1,086)



1,903



2,401

Institutional separate account assets -
















end of period

$

40,285


$

40,883


$

38,992


$

40,285


$

38,992


















High-net-worth separate account assets -

















beginning of period



14,704



13,255



14,249



13,256



11,883


Sales and other inflows



752



1,338



529



3,110



2,250


Redemptions/outflows



(540)



(534)



(552)



(1,626)



(1,925)


Net flows



212



804



(23)



1,484



325


Assets acquired



-



-



-



-



352


Exchanges



-



(42)



7



(999)



2


Market value change



(234)



687



(645)



941



1,026

High-net-worth separate account assets -
















end of period

$

14,682


$

14,704


$

13,588


$

14,682


$

13,588


















Retail managed account assets -

















beginning of period



27,531



26,528



26,491



24,571



23,650


Sales and other inflows



1,643



1,979



1,505



5,368



5,339


Redemptions/outflows



(1,301)



(1,513)



(1,509)



(4,550)



(4,706)


Net flows



342



466



(4)



818



633


Exchanges



-



2



(7)



988



20


Market value change



(459)



535



(821)



1,037



1,356

Retail managed account assets -

         end of period

$

27,414


$

27,531


$

25,659


$

27,414


$

25,659


















Total long-term assets -

















beginning of period



197,147



191,173



201,890



187,535



184,104


Sales and other inflows



10,923



13,226



13,663



35,644



43,825


Redemptions/outflows



(12,365)



(12,659)



(11,808)



(37,638)



(37,202)


Net flows



(1,442)



567



1,855



(1,994)



6,623


Assets acquired



-



-



-



-



352


Exchanges



3



(2)



(37)



(13)



(102)


Market value change



(3,070)



5,409



(5,493)



7,110



7,238

Total long-term assets - end of period

$

192,638


$

197,147


$

198,215


$

192,638


$

198,215


















Cash management fund assets
















end of period



220



340



815



220



815


















Total assets under management -
















end of period


$

192,858


$

197,487


$

199,030


$

192,858


$

199,030