Eaton Vance Corp. Report for the Three and Six Month Periods Ended April 30, 2013

BOSTON, May 22, 2013 /PRNewswire/ -- Eaton Vance Corp. (NYSE: EV) today reported adjusted earnings per diluted share(1) of $0.52 for the second quarter of fiscal 2013, an increase of 16 percent over the $0.45 of adjusted earnings per diluted share in the second quarter of fiscal 2012 and an increase of 4 percent from the $0.50 of adjusted earnings per diluted share in the first quarter 2013.

As determined under U.S. generally accepted accounting principles ("GAAP"), the Company earned $0.50 in the second quarter of fiscal 2013, $0.44 in the second quarter of fiscal 2012 and $0.38 in the first quarter of fiscal 2013. Adjusted earnings differed from GAAP earnings 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, $0.01 and $0.09 per diluted share in the second quarter of fiscal 2013, the second quarter of fiscal 2012 and the first quarter of fiscal 2013, respectively. In the second quarter of fiscal 2013, adjusted earnings also differed from GAAP earnings due to the closed-end fund structuring fees recognized in connection with the $205 million initial public offering of Eaton Vance Municipal Income Term Trust during the quarter, which reduced GAAP earnings per diluted share by $0.01. In the first quarter of fiscal 2013, adjusted earnings per diluted share also differed from GAAP earnings per diluted share due to the application of the two-class method of computing earnings per share in connection with the special dividend declared in the first quarter of fiscal 2013, which reduced GAAP earnings per diluted share by $0.03

Adjusted earnings per diluted share were $1.01 in the six months ended April 30, 2013 compared to $0.92 in the six months ended April 30, 2012. The Company's GAAP earnings per diluted share were $0.89 and $0.84, respectively, for the compared semi-annual periods.

Net inflows of $6.6 billion into long-term funds and separate accounts in the second quarter of fiscal 2013 compare to net inflows of $0.6 billion in the second quarter of fiscal 2012 and $5.4 billion in the first quarter of fiscal 2013.  As shown in Attachment 5, the sharp improvement in net flow results year-over-year reflects strong net inflows into floating-rate income and alternative mandates and improved equity net flows.  The Company's annualized internal growth rate (net inflows into long-term assets divided by beginning of period long-term assets managed) was 11 percent in the second quarter of fiscal 2013 and 12 percent for the six months ended April 30, 2013. 

"Strong net flows and favorable market action propelled Eaton Vance to solid growth in our second fiscal quarter," said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "Higher managed assets across a range of investment categories position the Company for continued progress."

Consolidated assets under management were $260.3 billion on April 30, 2013.  This represents an increase of 32 percent over the $197.5 billion of managed assets on April 30, 2012 and an increase of 5 percent from the $247.8 billion of managed assets on January 31, 2013.  The year over year increase in ending assets under management reflects the $34.8 billion of managed assets gained in the December 2012 acquisition of the former Clifton Investment Management Company ("Clifton") by subsidiary Parametric Portfolio Associates LLC ("Parametric"), twelve-month net inflows of $12.7 billion and market price appreciation of $15.4 billion.  The sequential increase in ending assets under management reflects net inflows of $6.6 billion and market price appreciation of $5.9 billion.

Average consolidated assets under management were $253.5 billion in the second quarter of fiscal 2013, up 30 percent from $195.6 billion in the second quarter of fiscal 2012 and up 17 percent from $216.2 billion in the first quarter of fiscal 2013. 

Attachments 5 and 6 summarize the Company's assets under management and asset flows by investment mandate and investment vehicle. Attachment 7 summarizes the Company's assets under management by investment affiliate.

As shown in Attachment 6, consolidated gross sales and other inflows were $24.7 billion in the second quarter of fiscal 2013, up 87 percent from $13.2 billion in the second quarter of fiscal 2012 and up 27 percent from $19.4 billion in the first quarter of fiscal 2013. Gross redemptions and other outflows were $18.0 billion in the second quarter of fiscal 2013, up 42 percent from $12.7 billion in the second quarter of fiscal 2012 and up 28 percent from $14.1 billion in the first quarter of fiscal 2013.   

As of April 30, 2013, 49 percent-owned affiliate Hexavest, Inc. ("Hexavest") managed $15.3 billion of client assets, an increase of 5 percent from the $14.5 billion of managed assets on January 31, 2013. Net outflows from Hexavest-managed funds and separate accounts were $0.3 billion in the second quarter of fiscal 2013 compared to net inflows of $1.9 billion in the first quarter of fiscal 2013.  Hexavest net inflows have totaled $2.4 billion since Eaton Vance acquired its interest on August 6, 2012.  Attachment 9 summarizes assets under management and asset flow information for Hexavest. Other than Eaton Vance-sponsored funds for which Hexavest is advisor or sub-advisor, the managed assets of Hexavest are not included in Eaton Vance consolidated totals.


 

Financial Highlights

















Three Months Ended



(in thousands, except per share figures)











April 30,

January 31,

April 30,



2013 

2013

2012









Revenue

$

331,692

$

318,517

$

304,770

Expenses


223,622 


217,837


205,959

Operating income


108,070 


100,680


98,811









Operating margin


33%


32%


32%









Non-operating expense


(2,196)


(5,791)


(855)

Income taxes


(38,194)


(35,939)


(35,164)

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


3,440 


3,177


(22)

Net income


 71,120 


62,127


62,770

Net income attributable to non-controlling








 and other beneficial interests


(7,439)


(12,322)


(9,900)

Net income attributable to








Eaton Vance Corp. shareholders

$

63,681

$

49,805

$

52,870

Adjusted net income attributable to Eaton








Vance Corp. shareholders(1)

$

66,024

$

60,452

$

53,967









Earnings per diluted share

$

0.50

$

0.38

$

0.44









Adjusted earnings per diluted share(1)

$

0.52

$

0.50

$

0.45

 

Second Quarter Fiscal 2013 vs. Second Quarter Fiscal 2012

In the second quarter of fiscal 2013, revenue increased 9 percent to $331.7 million from revenue of $304.8 million in the second quarter of fiscal 2012.  Investment advisory and administrative fees were up 11 percent, reflecting a 30 percent increase in average consolidated assets under management and lower average effective fee rates, primarily as a result of the full quarter impact of the Clifton acquisition. Distribution and service fees were down 2 percent on a combined basis, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.

Expenses increased 9 percent to $223.6 million in the second quarter of fiscal 2013 from $206.0 million in the second quarter of fiscal 2012, reflecting increases in compensation, distribution, service fees, fund-related expenses and other expenses, offset by reduced amortization of deferred sales commissions. Excluding the $3.4 million of structuring fee, incentive compensation and other expenses associated with the second quarter fiscal 2013 closed-end fund offering, operating expenses increased 7 percent from the second quarter of fiscal 2012. The increase in compensation expense reflects increases in sales- and operating income-based incentives, higher employee headcount and increases in base salaries and benefits, offset by a decrease in other compensation expense. Gross sales and other inflows, which drive sales-based incentives, were up 87 percent year-over-year, while pre-bonus adjusted operating income, which drives operating-income based incentives, was up 9 percent over the same period. The increase in distribution expense reflects $2.7 million in closed-end fund related structuring fees paid to distribution partners, offset by a decrease in intermediary marketing support payments to distribution partners. The increase in fund-related expenses can be attributed to an increase in expenses borne by the Company on funds for which it receives an all-in fee, as well as $0.3 million of fund-related expenses incurred in conjunction with the closed-end fund offering mentioned above. Other expenses increased 3 percent from the prior year, as increases in travel-related expenses, information technology and other corporate expenses were offset by decreases in professional fees and facilities-related 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.

Operating income was up 9 percent to $108.1 million in the second quarter of fiscal 2013 from $98.8 million in the second quarter of fiscal 2012.

Non-operating expense was $2.2 million in the second quarter of fiscal 2013 compared to $0.9 million in the second quarter of fiscal 2012. The increase in non-operating expense reflects a $4.5 million decrease in gains and other investment income recognized by the Company's consolidated collateralized loan obligation entity ("CLO") offset by a $2.2 million increase 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 (loss) of affiliates, was 36.1 percent in the second quarter of fiscal 2013. 

Equity in net income (loss) of affiliates increased $3.5 million from the second quarter of fiscal 2012, reflecting $2.1 million related to the Company's interest in Hexavest and higher income from the Company's investments in sponsored products.

Net income attributable to non-controlling and other beneficial interests was $7.4 million in the second quarter of fiscal 2013 compared to $9.9 million in the second quarter of fiscal 2012. As shown in Attachment 3, the change reflects a decline in the net income attributable to non-controlling interest holders of the Company's consolidated CLO entity offset by an increase in net income attributable to non-controlling interest holders of the Company's consolidated funds.  Included in net income attributable to non-controlling and other beneficial interests in the second quarter of fiscal 2013 and 2012 were $0.7 million and $1.1 million, respectively, of non-controlling interest value adjustments relating to the Company's Parametric Risk Advisors LLC ("PRA") subsidiary, based on an annual April 30 enterprise value measurement.

Weighted average diluted shares outstanding increased 7.4 million shares, or 6 percent, in the second quarter of fiscal 2013 over the second quarter of fiscal 2012.  The change reflects an increase in the total number of shares outstanding due to exercise of employee stock options and an increase in the dilutive effect of in-the-money options resulting from a 42 percent increase in the quarterly average share price of the Company's Non-Voting Common Stock.

Second Quarter Fiscal 2013 vs. First Quarter Fiscal 2013

In the second quarter of fiscal 2013, revenue increased 4 percent to $331.7 million from revenue of $318.5 million in the first quarter of fiscal 2013.  Investment advisory and administrative fees were up 5 percent in the second quarter of fiscal 2013 compared to the first quarter of fiscal 2013, reflecting a 17 percent increase in average assets under management and lower average effective fee rates, primarily due to the full quarter impact of the Clifton acquisition. Performance fees contributed $0.1 million and $1.6 million to investment advisory and administrative fees in the second quarter of fiscal 2013 and the first quarter of fiscal 2013, respectively. Distribution and service fee revenue decreased 1 percent on a combined basis, reflecting a decrease in average managed assets in fund share classes that are subject to such fees.

Expenses increased 3 percent to $223.6 million in the second quarter of fiscal 2013 from $217.8 million in the first quarter of fiscal 2013, reflecting increases in compensation, distribution, service fee, fund-related and other expenses, offset by reduced amortization of deferred sales commissions. Excluding the $3.4 million of expenses associated with the closed-end fund offering in the second quarter of fiscal 2013, operating expenses increased 1 percent from the first quarter of fiscal 2013. The increase in compensation expense reflects a full quarter of Clifton salaries and increases in sales- and operating income-based incentives, offset by decreases in the number of payroll days in the quarter, stock-based compensation and other compensation. Gross sales and other inflows, which drive sales-based incentives, were up 27 percent in the second quarter of fiscal 2013 from the first quarter of fiscal 2013, while pre-bonus adjusted operating income, which drives operating-income based incentives, was up 6 percent over the same period. The increase in distribution expense primarily reflects $2.7 million in closed-end fund related structuring fees paid to distribution partners, offset by a decrease in intermediary marketing support payments. Fund-related expenses increased 9 percent from the first quarter of fiscal 2013 due to higher expenses borne by the Company on funds for which it receives an all-in fee, an increase in sub-advisory fees paid and $0.3 million of fund-related expenses incurred in conjunction with the closed-end fund offering discussed above.

Operating income was up 7 percent to $108.1 million in the second quarter of fiscal 2013 from $100.7 million in the first quarter of fiscal 2013.

Non-operating expense was $2.2 million in the second quarter of fiscal 2013 compared to $5.8 million in the first quarter of fiscal 2013.  The decrease in non-operating expense is primarily attributable to a $2.6 million increase in gains and other investment income, net recognized by the Company's consolidated CLO entity and a $1.2 million decrease in interest expense recognized by the Company's consolidated CLO entity.

Equity in net income of affiliates increased by $0.3 million in the second quarter of fiscal 2013 compared to the first quarter of fiscal 2013, primarily reflecting higher income on the Company's investments in sponsored products.  Equity in net income of affiliates for the second quarter of fiscal 2013 and the first quarter of fiscal 2013 includes $2.1 million and $2.0 million, respectively, related to Hexavest. 

Net income attributable to non-controlling and other beneficial interests totaled $7.4 million in the second quarter of fiscal 2013 and $12.3 million in the first quarter of fiscal 2013. As shown in Attachment 3, the decrease can be primarily attributed to lower non-controlling interest value adjustments, offset by an increase in the net income associated with the non-controlling interests of the Company's consolidated CLO entity and an increase in non-controlling interests associated with the Company's consolidated funds. Included in net income attributable to non-controlling and other beneficial interests in the second quarter of fiscal 2013 and the first quarter of fiscal 2013 were $0.7 million and $10.6 million of non-controlling interest value adjustments relating, respectively, to PRA and Parametric based on an April 30 and December 31 enterprise value measurement, respectively.

Weighted average diluted shares outstanding increased 4.2 million shares, or 4 percent, in the second quarter of fiscal 2013 over the first quarter of fiscal 2013.  The change reflects an increase in the total number of shares outstanding due to exercise of employee stock options and an increase in the dilutive effect of in-the-money options due to a 23 percent increase in the average share price of the Company's Non-Voting Common Stock over the prior quarter.

Balance Sheet Information

Cash and cash equivalents totaled $320.1 million on April 30, 2013, with no outstanding borrowings against the Company's $300 million credit facility.  During the first six months of fiscal 2013, the Company used $22.7 million to repurchase and retire approximately 0.7 million shares of its Non-Voting Common Stock under its repurchase authorization.  Approximately 3.2 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 six months ended April 30, 2013. To participate in the conference call, please call 877-407-0778 (domestic) or 201-689-8565 (international) and refer to "Eaton Vance Corp. Second 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 confirmation code 414388.

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 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, such as special dividends. 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)















































Three Months Ended


Six Months Ended











%

%


















Change

Change


















Q2 2013

Q2 2013












April 30,

January 31,

April 30,

vs.

vs.


April 30,

April 30,

%





2013

2013

2012

Q1 2013

Q2 2012


2013

2012

Change


Revenue:








































Investment advisory and administrative fees

$

276,921

$

263,281

$

248,888

5

%

11

%


$

540,202

$

488,340

11

%



Distribution and underwriter fees


22,165


22,751


22,551

(3)


(2)




44,916


45,066

-




Service fees


31,132


31,130


32,065

-


(3)




62,262


64,364

(3)




Other revenue


1,474


1,355


1,266

9


16




2,829


2,606

9





Total revenue


331,692


318,517


304,770

4


9




650,209


600,376

8



Expenses:








































Compensation and related costs


110,012


108,829


97,566

1


13




218,841


194,249

13




Distribution expense


35,304


33,889


32,960

4


7




69,193


65,288

6




Service fee expense


29,211


28,264


28,088

3


4




57,475


56,761

1




Amortization of deferred sales commissions


4,752


4,783


5,533

(1)


(14)




9,535


11,353

(16)




Fund-related expenses


8,074


7,424


6,590

9


23




15,498


13,241

17




Other expenses


36,269


34,648


35,222

5


3




70,917


67,853

5





Total expenses


223,622


217,837


205,959

3


9




441,459


408,745

8



Operating income


108,070


100,680


98,811

7


9




208,750


191,631

9



Non-operating income (expense):




















Gains and other investment income, net


5,043


5,207


2,796

(3)


80




10,250


10,973

(7)




Interest expense


(8,572)


(8,570)


(8,412)

-


2




(17,142)


(16,825)

2




Other income (expense) of consolidated CLO entity:





















     Gains and other investment income, net


4,384


1,793


8,895

144


(51)




6,177


19,175

(68)





     Interest expense


(3,051)


(4,221)


(4,134)

(28)


(26)




(7,272)


(8,445)

(14)





Total non-operating (expense) income


(2,196)


(5,791)


(855)

(62)


157




(7,987)


4,878

NM
























Income before income taxes and equity



















   in net income (loss) of affiliates

105,874


94,889


97,956

12


8




200,763


196,509

2



Income taxes


(38,194)


(35,939)


(35,164)

6


9




(74,133)


(70,351)

5



Equity in net income (loss) of affiliates,



















   net of tax


3,440


3,177


(22)

8


NM




6,617


1,482

346



Net income


71,120


62,127


62,770

14


13




133,247


127,640

4



Net income attributable to non-controlling



















   and other beneficial interests


(7,439)


(12,322)


(9,900)

(40)


(25)




(19,761)


(27,499)

(28)



Net income attributable to



















   Eaton Vance Corp. Shareholders

$

63,681

$

49,805

$

52,870

28


20



$

113,486

$

100,141

13
























Earnings per share:



















Basic

$

0.53

$

0.39

$

0.46

36


15



$

0.93

$

0.87

7




Diluted

$

0.50

$

0.38

$

0.44

32


14



$

0.89

$

0.84

6
























Weighted average shares outstanding:


















Basic


117,102


114,925


112,418

2


4




115,900


112,541

3




Diluted


123,330


119,112


115,881

4


6




121,235


115,324

5
























Dividends declared per share

$

0.20

$

1.20

$

0.19

(83)


5



$

1.40

$

0.38

268





































Attachment 2


Eaton Vance Corp.


Reconciliation of net income attributable to Eaton Vance Corp.


shareholders to adjusted net income attributable to Eaton Vance


Corp. shareholders and earnings per diluted share to adjusted earnings per diluted share











































Three Months Ended


Six Months Ended










% Change

% Change










April 30,

January 31,

April 30,

Q2 2013 vs.

Q2 2013 vs.


April 30,

April 30,

%


(in thousands, except per share figures)

2013

2013

2012

Q1 2013

Q2 2012


2013

2012

Change






















Net income attributable to Eaton Vance




















Corp. shareholders

$

63,681

$

49,805

$

52,870

28

%

20

%


$

113,486

$

100,141

13

%





















Non-controlling interest value adjustments


666


10,647


1,097

(94)


(39)




11,313


9,199

23






















Closed-end fund structuring fees, net of tax


1,677


-


-

NM


NM




1,677


-

NM






















Adjusted net income attributable to Eaton




















Vance Corp. shareholders

$

66,024

$

60,452

$

53,967

9


22



$

126,476

$

109,340

16










































Earnings per diluted share

$

0.50

$

0.38

$

0.44

32


14



$

0.89

$

0.84

6






















Non-controlling interest value adjustments


0.01


0.09


0.01

(89)


-




0.09


0.08

13






















Closed-end fund structuring fees, net of tax

0.01


-


-

NM


NM




0.01


-

NM






















Special dividend adjustment


-


0.03


-

NM


NM




0.02


-

NM























Adjusted earnings per diluted share

$

0.52

$

0.50

$

0.45

4


16



$

1.01

$

0.92

10






































Attachment 3


Eaton Vance Corp.


Components of net income attributable


to non-controlling and other beneficial interests












































Three Months Ended


Six Months Ended










% Change

% Change











April 30,

January 31,

April 30,

Q2 2013 vs.

Q2 2013 vs.


April 30,

April 30,

%


(in thousands)

2013

2013

2012

Q1 2013

Q2 2012


2013

2012

Change






















Consolidated funds

$

(2,986)

$

(1,106)

$

(1,182)

170

%

153

%


$

(4,092)

$

(2,328)

76

%





















Majority-owned subsidiaries


(3,690)


(3,899)


(3,751)

(5)


(2)




(7,589)


(7,111)

7























Non-controlling interest value adjustments


(666)


(10,647)


(1,097)

(94)


(39)




(11,313)


(9,199)

23






















Consolidated CLO entity


(97)


3,330


(3,870)

NM


(97)




3,233


(8,861)

NM























Net income attributable to non-controlling




















and other beneficial interests

$

(7,439)

$

(12,322)

$

(9,900)

(40)


(25)



$

(19,761)

$

(27,499)

(28)










Attachment 4


Eaton Vance Corp.


Balance Sheet


(in thousands, except per share figures)








April 30,




October 31,




2013




2012


Assets
























Cash and cash equivalents

$

320,135



$

462,076


Investment advisory fees and other receivables


153,135




133,589


Investments


542,058




486,933


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








          Cash and cash equivalents


61,244




36,758


          Bank loans and other investments


319,321




430,583


          Other assets


5,538




1,107


Deferred sales commissions


19,261




19,336


Deferred income taxes


54,637




51,234


Equipment and leasehold improvements, net


51,657




54,889


Intangible assets, net


79,251




59,228


Goodwill


228,876




154,636


Other assets


52,166




89,122


   Total assets

$

1,887,279



$

1,979,491










Liabilities, Temporary Equity and Permanent Equity
















Liabilities:
















Accrued compensation

$

86,993



$

145,338


Accounts payable and accrued expenses


60,428




59,397


Dividend payable


24,287




23,250


Debt


500,000




500,000


Liabilities of consolidated CLO entity:








          Senior and subordinated note obligations


368,127




446,605


          Other liabilities


489




766


Other liabilities


72,905




91,785


   Total liabilities


1,113,229




1,267,141


Commitments and contingencies
















Temporary Equity:








Redeemable non-controlling interests


121,252




98,765


          Total temporary equity


121,252




98,765










Permanent Equity:








Voting Common Stock, par value $0.00390625 per share:








   Authorized, 1,280,000 shares








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


2




2


Non-Voting Common Stock, par value $0.00390625 per share:








   Authorized, 190,720,000 shares








   Issued, 121,009,816 and 115,878,384 shares, respectively


473




453


Additional paid-in capital


129,282




26,730


Notes receivable from stock option exercises


(7,278)




(4,155)


Accumulated other comprehensive income


1,251




3,923


Appropriated retained earnings


15,466




18,699


Retained earnings


512,038




566,420


   Total Eaton Vance Corp. shareholders' equity


651,234




612,072


Non-redeemable non-controlling interests


1,564




1,513


   Total permanent equity


652,798




613,585


Total liabilities, temporary equity and permanent equity

$

1,887,279



$

1,979,491

























Attachment 5


Eaton Vance Corp.


Consolidated Net Flows by Investment Mandate(1)


(in millions)




Three Months Ended


Six Months Ended




April 30,


January 31,


April 30,


April 30,


April 30,




2013 


2013


2012


2013


2012


Equity assets - beginning of period(2)

$

86,518


$

80,782


$

84,957


$

80,782


$

84,281



Sales and other inflows


 5,270 



4,496



4,416



9,766



9,192



Redemptions/outflows


 (4,990)



(4,959)



(6,998)



(9,949)



(13,472)



Net flows


 280 



(463)



(2,582)



(183)



(4,280)



Assets acquired(3)


 - 



1,572



-



1,572



-



Exchanges


 124 



(8)



(5)



116



(13)



Market value change


 2,612 



4,635



3,670



7,247



6,052


Equity assets - end of period

$

89,534


$

86,518


$

86,040


$

89,534


$

86,040


Fixed income assets - beginning of period


 49,679 



49,003



45,514



49,003



43,708



Sales and other inflows


 3,289 



3,377



3,626



6,666



6,253



Redemptions/outflows


 (3,348)



(3,375)



(2,276)



(6,723)



(4,729)



Net flows


 (59)



2



1,350



(57)



1,524



Assets acquired(3)


 - 



472



-



472



-



Exchanges


 (59)



(22)



-



(81)



40



Market value change


 388 



224



27



612



1,619


Fixed income assets - end of period

$

49,949


$

49,679


$

46,891


$

49,949


$

46,891


Floating-rate income assets -  beginning of period


 28,656 



26,388



24,376



26,388



24,322



Sales and other inflows


 6,092 



3,260



1,662



9,352



3,122



Redemptions/outflows


 (1,153)



(1,359)



(1,451)



(2,512)



(2,740)



Net flows


 4,939 



1,901



211



6,840



382



Exchanges


 50 



33



27



83



19



Market value change


 34 



334



233



368



124


Floating-rate income assets - end

















of period

$

33,679


$

28,656


$

24,847


$

33,679


$

24,847


Alternative assets -  beginning of period


 14,345 



12,864



10,462



12,864



10,650



Sales and other inflows


 2,767 



1,809



1,121



4,576



2,227



Redemptions/outflows


 (960)



(1,055)



(1,036)



(2,015)



(2,238)



Net flows


 1,807 



754



85



2,561



(11)



Assets acquired(3)


 - 



650



-



650



-



Exchanges


 (103)



(13)



(23)



(116)



(62)



Market value change


 (27)



90



(7)



63



(60)


Alternative assets - end of period

$

16,022


$

14,345


$

10,517


$

16,022


$

10,517


Implementation services assets -

















beginning of period(4)


 68,420 



30,302



25,864



30,302



24,574



Sales and other inflows


 7,252 



6,479



2,401



13,731



3,928



Redemptions/outflows


 (7,576)



(3,316)



(898)



(10,892)



(2,094)



Net flows


 (324)



3,163



1,503



2,839



1,834



Assets acquired(3)


 - 



32,064



-



32,064



-



Exchanges


 (15)



-



(1)



(15)



(1)



Market value change


 2,885 



2,891



1,486



5,776



2,445


Implementation services assets -

















end of period

$

70,966


$

68,420


$

28,852


$

70,966


$

28,852


Long-term assets - beginning of period


 247,618 



199,339



191,173



199,339



187,535



Sales and other inflows


 24,670 



19,421



13,226



44,091



24,722



Redemptions/outflows


 (18,027)



(14,064)



(12,659)



(32,091)



(25,273)



Net flows


 6,643 



5,357



567



12,000



(551)



Assets acquired(3)


 - 



34,758



-



34,758



-



Exchanges


 (3)



(10)



(2)



(13)



(17)



Market value change


 5,892 



8,174



5,409



14,066



10,180


Total long-term assets - end of period

$

260,150


$

247,618


$

197,147


$

260,150


$

197,147


Cash management fund assets -

















end of period


 127 



155



340



127



340


Total assets under management -

















end of period

$

260,277


$

247,773


$

197,487


$

260,277


$

197,487




(1)  Consolidated Eaton Vance Corp.  See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest Inc.


(2)  Balances include assets in balanced accounts holding income securities.


(3)  Balances represent Clifton assets acquired on December 31, 2012.








(4)  Balances represent amounts reclassified from equity for fiscal 2012 periods.


 















Attachment 6


Eaton Vance Corp.


Consolidated Net Flows by Investment Vehicle(1)


(in millions)





Three Months Ended


Six Months Ended





April 30,


January 31,


April 30,


April 30,


April 30,





2013 


2013


2012


2013


2012


Long-term fund assets - beginning of period


$

119,162


$

113,249


$

112,664


$

113,249


$

111,705



Sales and other inflows



 12,629 



9,079



6,648



21,708



13,553



Redemptions/outflows



 (6,506)



(6,876)



(7,818)



(13,382)



(15,930)



Net flows



 6,123 



2,203



(1,170)



8,326



(2,377)



Assets acquired(2)



 - 



638



-



638



-



Exchanges



 (3)



(19)



(2)



(22)



(16)



Market value change



 1,732 



3,091



2,537



4,823



4,717


Long-term fund assets - end of period

$

127,014


$

119,162


$

114,029


$

127,014


$

114,029




















Institutional separate account assets -


















beginning of period



 83,350 



43,338



38,726



43,338



38,003



Sales and other inflows



 8,102 



6,785



3,261



14,887



5,085



Redemptions/outflows



 (9,071)



(3,821)



(2,794)



(12,892)



(5,009)



Net flows



 (969)



2,964



467



1,995



76



Assets acquired(2)



 - 



34,120



-



34,120



-



Exchanges



 - 



5



40



5



11



Market value change



 2,343 



2,923



1,650



5,266



2,793


Institutional separate account assets -


















end of period


$

84,724


$

83,350


$

40,883


$

84,724


$

40,883




















High-net-worth separate account assets -


















beginning of period



 16,245 



15,036



13,255



15,036



13,256



Sales and other inflows



 1,497 



1,379



1,338



2,876



2,359



Redemptions/outflows



 (573)



(1,198)



(534)



(1,771)



(1,086)



Net flows



 924 



181



804



1,105



1,273



Exchanges



 9 



(15)



(42)



(6)



(999)



Market value change



 849 



1,043



687



1,892



1,174


High-net-worth separate account

















   assets - end of period


$

18,027


$

16,245


$

14,704


$

18,027


$

14,704




















Retail managed account assets -


















beginning of period



 28,861 



27,716



26,528



27,716



24,571



Sales and other inflows



 2,442 



2,178



1,979



4,620



3,725



Redemptions/outflows



 (1,877)



(2,169)



(1,513)



(4,046)



(3,248)



Net flows



 565 



9



466



574



477



Exchanges



 (9)



19



2



10



987



Market value change



 968 



1,117



535



2,085



1,496


Retail managed account assets -

















end of period


$

30,385


$

28,861


$

27,531


$

30,385


$

27,531




















Total long-term assets - beginning


















of period



 247,618 



199,339



191,173



199,339



187,535



Sales and other inflows



 24,670 



19,421



13,226



44,091



24,722



Redemptions/outflows



 (18,027)



(14,064)



(12,659)



(32,091)



(25,273)



Net flows



 6,643 



5,357



567



12,000



(551)



Assets acquired(2)



 - 



34,758



-



34,758



-



Exchanges



 (3)



(10)



(2)



(13)



(17)



Market value change



 5,892 



8,174



5,409



14,066



10,180


Total long-term assets - end of period

$

260,150


$

247,618


$

197,147


$

260,150


$

197,147




















Cash management fund assets -

















end of period



 127 



155



340



127



340




















Total assets under management -


















end of period


$

260,277


$

247,773


$

197,487


$

260,277


$

197,487




















(1)   Consolidated Eaton Vance Corp.  See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest Inc.


(2)   Balances represent Clifton assets acquired on December 31, 2012.
















 













Attachment 7


Eaton Vance Corp.


Consolidated Assets under Management by Investment Affiliate (1)


(in millions)




















April 30,



January 31,


%



April 30,


%





2013 



2013


Change



2012


Change


Eaton Vance Management(2)

$

142,211


$

134,554


6%


$

133,257


7%


Parametric


 100,760 



96,725


4%



49,245


105%


Atlanta Capital


 17,306 



16,494


5%



14,985


15%


Total

$

260,277


$

247,773


5%


$

197,487


32%

















(1)   Consolidated Eaton Vance Corp. See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest.


(2)   Includes managed assets of wholly owned subsidiaries Eaton Vance Investment Counsel and Fox Asset Management


      LLC, as well as certain Eaton Vance-sponsored funds and accounts managed by Hexavest and unaffiliated third-party


      advisors under Eaton Vance supervision.






























Attachment 8


Eaton Vance Corp.


Consolidated Assets under Management by Investment Mandate (1)


(in millions)




















April 30,



January 31,


%



April 30,


%





2013 



2013


Change



2012


Change


Equity(2)

$

89,534


$

86,518


3%


$

86,040


4%


Fixed income


 49,949 



49,679


1%



46,891


7%


Floating-rate income


 33,679 



28,656


18%



24,847


36%


Alternative


 16,022 



14,345


12%



10,517


52%


Implementation services


 70,966 



68,420


4%



28,852


146%


Cash management


 127 



155


-18%



340


-63%


Total

$

260,277


$

247,773


5%


$

197,487


32%

















(1)   Consolidated Eaton Vance Corp. See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest.


(2)   Balances include assets in balanced accounts holding income securities.


 

Attachment 9


Eaton Vance Corp.


Hexavest Inc. Assets under Management and Net Flows


(in millions)


















Three Months Ended


Six Months Ended






April 30,


January 31,


April 30,






2013 


2013


2013



Eaton Vance distributed:











Eaton Vance sponsored funds - beginning











   of period(1)

$

135


$

37


$

37




Sales and other inflows


 17 



94



111




Redemptions/outflows


 (1)



(5)



(6)




Net flows


 16 



89



105




Market value change


 10 



9



19



Eaton Vance sponsored funds - end











   of period

$

161


$

135


$

161



Eaton Vance distributed separate accounts -











   beginning of period(2)

$

1,185


$

-


$

-




Sales and other inflows


 3 



1,148



1,151




Redemptions/outflows


 - 



-



-




Net flows


 3 



1,148



1,151




Market value change


 95 



37



132



Eaton Vance distributed separate accounts -











   end of period

$

1,283


$

1,185


$

1,283



Total Eaton Vance distributed - beginning











   of period

$

1,320


$

37


$

37




Sales and other inflows


 20 



1,242



1,262




Redemptions/outflows


 (1)



(5)



(6)




Net flows


 19 



1,237



1,256




Market value change


 105 



46



151



Total Eaton Vance distributed - end











   of period

$

1,444


$

1,320


$

1,444



Hexavest directly distributed - beginning











   of period(3)

$

13,224


$

12,073


$

12,073




Sales and other inflows


 298 



920



1,218




Redemptions/outflows


 (570)



(263)



(833)




Net flows


 (272)



657



385




Market value change


 879 



494



1,373



Hexavest directly distributed - end











   of period

$

13,831


$

13,224


$

13,831



Total Hexavest assets - beginning of period

$

14,544


$

12,110


$

12,110




Sales and other inflows


 318 



2,162



2,480




Redemptions/outflows


 (571)



(268)



(839)




Net flows


 (253)



1,894



1,641




Market value change


 984 



540



1,524



Total Hexavest assets - end of period

$

15,275


$

14,544


$

15,275
















(1) Managed assets and flows of Eaton Vance-sponsored pooled investment vehicles for which Hexavest is advisor or sub-advisor.


Eaton Vance receives management and/or distribution revenue on these assets, which are included in the Eaton


Vance consolidated results in Attachments 5, 6, 7 and 8.


(2) Managed assets and flows of Eaton Vance-distributed separate accounts managed by Hexavest.  Eaton Vance receives


distribution, but not management, revenue on these assets, which are not included in the Eaton Vance consolidated


results in Attachments 5, 6, 7 and 8.


(3) Managed assets and flows of pre-transaction Hexavest clients and post-transaction Hexavest clients in Canada. Eaton


Vance receives no management or distribution revenue on these assets, which are not included in the Eaton Vance


consolidated results in Attachments 5, 6, 7 and 8.


 

 

SOURCE Eaton Vance Corp.



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