Eaton Vance Corp. Report for the Three Month Period Ended January 31, 2014

19 Feb, 2014, 08:38 ET from Eaton Vance Corp.

BOSTON, Feb. 19, 2014  /PRNewswire/ -- Eaton Vance Corp. (NYSE: EV) today reported adjusted earnings per diluted share(1) of $0.58 for the first quarter of fiscal 2014, an increase of 16 percent over the $0.50 of adjusted earnings per diluted share in the first quarter of fiscal 2013 and an increase of 5 percent over the $0.55 of adjusted earnings per diluted share in the fourth quarter of fiscal 2013. 

As determined under U.S. generally accepted accounting principles ("GAAP"), the Company earned $0.56 in the first quarter of fiscal 2014, $0.38 in the first quarter of fiscal 2013 and $0.45 in the fourth quarter of fiscal 2013. Adjusted earnings differed from GAAP earnings for the compared periods due to increases in the estimated redemption value of non-controlling interests in affiliates redeemable at other than fair value, which reduced GAAP earnings by $0.02, $0.09 and $0.10 per diluted share, respectively, in the first quarter of fiscal 2014, the first quarter of fiscal 2013 and the fourth quarter of fiscal 2013. In the first quarter of fiscal 2013, adjusted earnings further differed from GAAP earnings to reflect 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.

Net income and gains on seed capital investments contributed $0.01 per diluted share in the first quarter of fiscal 2014 and $0.03 per diluted share in the first quarter of fiscal 2013.  Net income and gains on seed capital investments were negligible in the fourth quarter of fiscal 2013.

Net outflows of $1.1 billion from long-term funds and separate accounts in the first quarter of fiscal 2014 compare to net inflows of $5.4 billion in the first quarter of fiscal 2013 and $3.9 billion in the fourth quarter of fiscal 2013. 

"Eaton Vance moved into net outflows in the first quarter of fiscal 2014, as withdrawals from global income and alternatives, large-cap value, managed options and municipal income strategies offset continuing strength in floating-rate income and implementation services," said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "With growing momentum for our newer multi-sector income and global allocation strategies and prospects for improved results for strategies now in net outflows, we expect better flows for the balance of the fiscal year."

Consolidated assets under management were $278.6 billion on January 31, 2014, an increase of 12 percent from the $247.8 billion of managed assets on January 31, 2013 and a decrease of 1 percent from the $280.7 billion of managed assets on October 31, 2013.  The year-over-year increase in ending assets under management reflects net inflows of $18.3 billion and market price appreciation of $12.6 billion.  The sequential quarterly decrease in ending assets under management reflects net outflows of $1.1 billion and market price declines of $1.0 billion.

Average consolidated assets under management were $282.3 billion in the first quarter of fiscal 2014, up 31 percent from $216.2 billion in the first quarter of fiscal 2013 and up 4 percent from $271.4 billion in the fourth quarter of fiscal 2013. 

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

As shown in Attachment 6, consolidated gross sales and other inflows were $29.5 billion in the first quarter of fiscal 2014, up 52 percent from $19.4 billion in the first quarter of fiscal 2013 and up 16 percent from $25.5 billion in the fourth quarter of fiscal 2013. Gross redemptions and other outflows were $30.6 billion in the first quarter of fiscal 2014, up 118 percent from $14.1 billion in the first quarter of fiscal 2013 and up 42 percent from $21.6 billion in the fourth quarter of fiscal 2013. 

As of January 31, 2014, 49 percent-owned affiliate Hexavest, Inc. ("Hexavest") managed $16.1 billion of client assets, an increase of 11 percent from the $14.5 billion of managed assets on January 31, 2013 and a decrease of 5 percent from the $16.9 billion of managed assets on October 31, 2013. Net outflows from Hexavest-managed funds and separate accounts were $0.4 billion in the first quarter of fiscal 2014 compared to net inflows of $1.9 billion in the first quarter of fiscal 2013 and net inflows of $0.2 billion in the fourth quarter of fiscal 2013.  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 and flows of Hexavest are not included in Eaton Vance consolidated totals.

 

Financial Highlights

Three Months Ended

(in thousands, except per share figures)

January 31,

October 31,

January 31,

2014

2013

2013

Revenue

$

360,261

$

356,933

$

318,517

Expenses

236,061

231,526

217,837

Operating income

124,200

125,407

100,680

Operating margin

34%

35%

32%

Non-operating (expense) income

(6,113)

(14,252)

(5,791)

Income taxes

(44,642)

(44,626)

(35,939)

Equity in net income of affiliates, net of tax

3,285

5,600

3,177

Net income

76,730

72,129

62,127

Net income attributable to non-controlling

 and other beneficial interests

(5,372)

(14,977)

(12,322)

Net income attributable to

Eaton Vance Corp. shareholders

$

71,358

$

57,152

$

49,805

Adjusted net income attributable to Eaton

Vance Corp. shareholders(1)

$

73,747

$

69,953

$

60,452

Earnings per diluted share

$

0.56

$

0.45

$

0.38

Adjusted earnings per diluted share(1)

$

0.58

$

0.55

$

0.50

 

First Quarter Fiscal 2014 vs. First Quarter Fiscal 2013 In the first quarter of fiscal 2014, revenue increased 13 percent to $360.3 million from revenue of $318.5 million in the first quarter of fiscal 2013.  Investment advisory and administrative fees were up 16 percent, reflecting a 31 percent increase in average consolidated assets under management, offset by lower average effective fee rates. Performance fees contributed $0.1 million and $1.6 million to investment advisory and administrative fees in the first quarter of fiscal 2014 and 2013, respectively. Distribution and service fee revenues were flat in aggregate, reflecting consistent levels of managed assets in fund share classes that are subject to distribution and service fees.

Operating expenses increased 8 percent to $236.1 million in the first quarter of fiscal 2014 from $217.8 million in the first quarter of fiscal 2013, reflecting increases in compensation, distribution and service fees, amortization of deferred sales commissions, fund-related expenses and other expenses. The increase in compensation expense reflects increases in operating income-based incentives, stock-based compensation, higher employee headcount and increases in base salaries and benefits, offset by a decrease in sales-based incentives. The increase in operating-income based incentives is due to higher bonus accruals in the first quarter of fiscal 2014 as a result of an increase in pre-bonus adjusted operating income. The increase in distribution expense reflects increases in intermediary marketing support payments and discretionary marketing expenses, offset by a decrease in Class A share commissions. The increase in amortization of deferred sales commissions largely reflects an increase in Class C share amortization, offset by a decrease in Class B share commissions.  The increase in fund-related expenses primarily reflects an increase in sub-advisory expenses for Company sponsored funds managed by unaffiliated sub-advisors. Other expenses increased 13 percent, reflecting increases in travel-related expenses, information technology, professional fees and other corporate expenses. 

Operating income was up 23 percent to $124.2 million in the first quarter of fiscal 2014 from $100.7 million in the first quarter of fiscal 2013.

Non-operating expense was $6.1 million in the first quarter of fiscal 2014 compared to $5.8 million in the first quarter of fiscal 2013. The year-over-year change reflects a decline of $4.8 million in gains (losses) and other investment income related to the Company's investments in sponsored products, a $3.3 million increase in income (expense) of the Company's consolidated collateralized loan obligation ("CLO") entities, and a $1.2 million decrease in interest expense. 

The Company's effective tax rate, calculated as a percentage of income before income taxes and equity in net income of affiliates, was 37.8 percent in the first quarter of fiscal 2014. Excluding the impact of consolidated CLO entities' income (expense) borne by other beneficial interest holders, the Company's effective tax rate was 37.7 percent for the quarter. 

Equity in net income of affiliates increased $0.1 million from the first quarter of fiscal 2013, reflecting an increase in the Company's equity in the net income of Hexavest, offset by decreases in gains (losses) and other income of the Company's investments in sponsored funds.  Equity in net income of affiliates for the first quarter of fiscal 2014 and 2013 includes $2.8 million and $2.0 million, respectively, of Company equity in the net income of Hexavest.

Net income attributable to non-controlling and other beneficial interests was $5.4 million in the first quarter of fiscal 2014 compared to $12.3 million in the first quarter of fiscal 2013. As shown in Attachment 3, net income attributable to non-controlling and other beneficial interests in the first quarter of fiscal 2014 and 2013 includes $2.4 million and $10.6 million, respectively, of non-controlling interest value adjustments relating to our majority-owned subsidiaries. The year-over-year change also reflects a decline in the net income (loss) attributable to non-controlling interest holders of the Company's consolidated CLO entities and a decline in net income attributable to non-controlling interest holders of the Company's consolidated funds.

Weighted average diluted shares outstanding increased 5.4 million shares, or 5 percent, in the first quarter of fiscal 2014 from the first quarter of fiscal 2013.  The change reflects an increase in the total number of shares outstanding due to the exercise of employee stock options and an increase in the dilutive effect of in-the-money options resulting from a 30 percent increase in the quarterly average share price of the Company's Non-Voting Common Stock.

First Quarter Fiscal 2014 vs. Fourth Quarter Fiscal 2013

In the first quarter of fiscal 2014, revenue increased 1 percent to $360.3 million from revenue of $356.9 million in the fourth quarter of fiscal 2013.  Investment advisory and administrative fees were up 1 percent in the first quarter of fiscal 2014 compared to the fourth quarter of fiscal 2013, reflecting a 4 percent increase in average consolidated assets under management, offset by lower average effective fee rates. Performance fees contributed $0.1 million and $3.4 million to investment advisory and administrative fees in the first quarter of fiscal 2014 and the fourth quarter of fiscal 2013, respectively. Distribution and service fee revenues were flat in aggregate, reflecting consistent levels of managed assets in fund share classes that are subject to distribution and service fees.

Operating expenses increased 2 percent to $236.1 million in the first quarter of fiscal 2014 from $231.5 million in the fourth quarter of fiscal 2013, reflecting increases in compensation and distribution and service fees, offset by reduced amortization of deferred sales commissions and lower fund-related and other operating expenses. The increase in compensation expense reflects increases in operating income-based incentives, higher employee headcount and increases in base salaries, partially offset by a decrease in stock-based compensation. The increase in operating income-based incentives reflects higher bonus accruals in the first quarter of fiscal 2014. The decrease in stock-based compensation relates principally to affiliate equity plan expense recognized in the fourth quarter of fiscal 2013. The increase in distribution expense reflects an increase in intermediary marketing support payments.  The decrease in amortization of deferred sales commissions reflects a decrease in Class B share amortization. Fund-related expenses decreased 20 percent due to decreases in fund subsidies and other fund-related expense. Other expenses decreased 1 percent, reflecting decreases in information technology and professional services, offset by an increase in other corporate expenses.

Operating income was down 1 percent to $124.2 million in the first quarter of fiscal 2014 from $125.4 million in the fourth quarter of fiscal 2013.

Non-operating expense was $6.1 million in the first quarter of fiscal 2014 compared to $14.3 million in the fourth quarter of fiscal 2013, reflecting a $5.1 million improvement in gains (losses) and other investment income and a $2.9 million improvement in income (expense) of the Company's consolidated CLO entities. 

Equity in net income of affiliates decreased by $2.3 million in the first quarter of fiscal 2014 compared to the fourth quarter of fiscal 2013, primarily reflecting a decrease in gains (losses) and other income on the Company's investments in sponsored products.  Equity in net income of affiliates for the first quarter of fiscal 2014 and the fourth quarter of fiscal 2013 includes $2.8 million and $3.0 million, respectively, of Company equity in the net income of Hexavest. 

Net income attributable to non-controlling and other beneficial interests was $5.4 million in the first quarter of fiscal 2014 compared to $15.0 million in the fourth quarter of fiscal 2013. As shown in Attachment 3, net income attributable to non-controlling and other beneficial interests in the first quarter of fiscal 2014 and the fourth quarter of fiscal 2013 includes $2.4 million and $12.6 million of non-controlling interest value adjustments relating to our majority-owned subsidiaries. The sequential quarter change also reflects a $1.5 million decrease in the income attributable to non-controlling interest holders of the Company's majority-owned subsidiaries. 

Balance Sheet Information

Cash and cash equivalents totaled $361.9 million on January 31, 2014, with no outstanding borrowings against the Company's $300 million credit facility.  During the first quarter of fiscal 2014, the Company used $43.5 million to repurchase and retire approximately 1.1 million shares of its Non-Voting Common Stock under its repurchase authorization.  Approximately 7.8 million shares of the current 8.0 million share repurchase authorization remain unused.

Conference Call Information

Eaton Vance Corp. will host a conference call and webcast at 11:00 AM EST today to discuss the financial results for the three months ended January 31, 2014. To participate in the conference call, please call 877-407-0778 (domestic) or 201-689-8565 (international) and refer to "Eaton Vance Corp. First 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 13575885.

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 fund structuring fees and other items management deems non-recurring or non-operating, such as special dividends, costs associated with retiring debt and tax settlements. 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

%

%

Change

Change

Q1 2014

Q1 2014

January 31,

October 31,

January 31,

vs.

vs.

2014

2013

2013

Q4 2013

Q1 2013

Revenue:

Investment advisory and administrative fees

$

304,713

$

301,536

$

263,281

1

%

16

%

Distribution and underwriter fees

21,621

21,637

22,751

-

(5)

Service fees

32,291

32,039

31,130

1

4

Other revenue

1,636

1,721

1,355

(5)

21

Total revenue

360,261

356,933

318,517

1

13

Expenses:

Compensation and related costs

118,822

112,914

108,829

5

9

Distribution expense

35,548

34,973

33,889

2

5

Service fee expense

29,205

28,661

28,264

2

3

Amortization of deferred sales commissions

4,970

5,063

4,783

(2)

4

Fund-related expenses

8,453

10,502

7,424

(20)

14

Other expenses

39,063

39,413

34,648

(1)

13

Total expenses

236,061

231,526

217,837

2

8

Operating income

124,200

125,407

100,680

(1)

23

Non-operating income (expense):

Gains (losses) and other investment income, net

413

(4,736)

5,207

NM

(92)

Interest expense

(7,400)

(7,399)

(8,570)

-

(14)

Loss on extinguishment of debt

-

(110)

-

NM

NM

Other income (expense) of consolidated CLO entities:

     Gains and other investment income, net

8,709

6,934

1,793

26

386

     Interest and other expense

(7,835)

(8,941)

(4,221)

(12)

86

Total non-operating expense

(6,113)

(14,252)

(5,791)

(57)

6

Income before income taxes and equity

   in net income of affiliates

118,087

111,155

94,889

6

24

Income taxes

(44,642)

(44,626)

(35,939)

-

24

Equity in net income of affiliates, net of tax

3,285

5,600

3,177

(41)

3

Net income

76,730

72,129

62,127

6

24

Net income attributable to non-controlling

   and other beneficial interests

(5,372)

(14,977)

(12,322)

(64)

(56)

Net income attributable to

   Eaton Vance Corp. Shareholders

$

71,358

$

57,152

$

49,805

25

43

Earnings per share:

Basic

$

0.59

$

0.47

$

0.39

26

51

Diluted

$

0.56

$

0.45

$

0.38

24

47

Weighted average shares outstanding:

Basic

118,451

117,419

114,925

1

3

Diluted

124,480

123,431

119,112

1

5

Dividends declared per share:

Regular

$

0.22

$

0.22

$

0.20

-

10

Special

$

-

$

-

$

1.00

NM

NM

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

% Change

% Change

January 31,

October 31,

January 31,

Q1 2014 vs.

Q1 2014 vs.

(in thousands, except per share figures)

2014

2013

2013

Q4 2013

Q1 2013

Net income attributable to Eaton

Vance Corp. shareholders

$

71,358

$

57,152

$

49,805

25

%

43

%

Non-controlling interest value

adjustments

2,389

12,602

10,647

(81)

(78)

Closed-end fund structuring fees,

net of tax

-

131

-

NM

NM

Loss on extinguishment of debt, net of tax

-

68

-

NM

NM

Adjusted net income attributable to

Eaton Vance Corp. shareholders

$

73,747

$

69,953

$

60,452

5

22

Earnings per diluted share

$

0.56

$

0.45

$

0.38

24

47

Non-controlling interest value

adjustments

0.02

0.10

0.09

(80)

(78)

Special dividend adjustment

-

-

0.03

NM

NM

Adjusted earnings per diluted share

$

0.58

$

0.55

$

0.50

5

16

Attachment 3

Eaton Vance Corp.

Components of net income attributable

to non-controlling and other beneficial interests

Three Months Ended

% Change

% Change

January 31,

October 31,

January 31,

Q1 2014 vs.

Q1 2014 vs.

(in thousands)

2014

2013

2013

Q4 2013

Q1 2013

Consolidated funds

$

(196)

$

209

$

1,106

NM

%

NM

%

Majority-owned subsidiaries

3,483

5,024

3,899

(31)

(11)

Non-controlling interest value

adjustments

2,389

12,602

10,647

(81)

(78)

Consolidated CLO entities

(304)

(2,858)

(3,330)

(89)

(91)

Net income attributable to non-controlling

and other beneficial interests

$

5,372

$

14,977

$

12,322

(64)

(56)

Attachment 4

Eaton Vance Corp.

Balance Sheet

(in thousands, except per share figures)

January 31,

October 31,

2014

2013

Assets

Cash and cash equivalents

$

361,974

$

461,906

Investment advisory fees and other receivables

168,451

170,220

Investments

575,546

536,323

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

          Cash and cash equivalents

62,044

36,641

          Bank loans and other investments

640,952

685,681

          Other assets

3,006

5,814

Deferred sales commissions

16,663

17,923

Deferred income taxes

47,186

61,139

Equipment and leasehold improvements, net

47,446

48,746

Intangible assets, net

72,175

74,534

Goodwill

228,876

228,876

Other assets

68,758

79,446

   Total assets

$

2,293,077

$

2,407,249

Liabilities, Temporary Equity and Permanent Equity

Liabilities:

Accrued compensation

$

65,808

$

169,953

Accounts payable and accrued expenses

67,555

58,529

Dividend payable

27,011

26,740

Debt

573,538

573,499

Liabilities of consolidated CLO entities:

          Senior and subordinated note obligations

642,043

279,127

          Line of credit

-

247,789

          Redeemable preferred shares

26,576

64,952

          Other liabilities

17,440

124,305

Other liabilities

76,162

115,960

   Total liabilities

1,496,133

1,660,854

Commitments and contingencies

Temporary Equity:

Redeemable non-controlling interests

90,855

74,856

          Total temporary equity

90,855

74,856

Permanent Equity:

Voting Common Stock, par value $0.00390625 per share:

   Authorized, 1,280,000 shares

   Issued and outstanding, 396,455 and 399,240 shares, respectively

2

2

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

   Authorized, 190,720,000 shares

   Issued and outstanding, 122,339,437 and 121,232,506 shares, respectively

478

474

Additional paid-in capital

123,699

124,837

Notes receivable from stock option exercises

(7,015)

(7,122)

Accumulated other comprehensive loss

(8,675)

(177)

Appropriated retained earnings

9,944

10,249

Retained earnings

585,950

541,521

   Total Eaton Vance Corp. shareholders' equity

704,383

669,784

Non-redeemable non-controlling interests

1,706

1,755

   Total permanent equity

706,089

671,539

Total liabilities, temporary equity and permanent equity

$

2,293,077

$

2,407,249

Attachment 5

 Eaton Vance Corp.

 Consolidated Net Flows by Investment Mandate(1)

 (in millions)

Three Months Ended

January 31,

October 31,

January 31,

2014

2013

2013

 Equity assets - beginning of period(2)

$

93,585

$

90,774

$

80,782

Sales and other inflows

3,785

3,167

4,496

Redemptions/outflows

(5,621)

(5,324)

(4,959)

Net flows

(1,836)

(2,157)

(463)

Assets acquired(3)

-

-

1,572

Exchanges

512

166

(8)

Market value change

(1,496)

4,802

4,635

 Equity assets - end of period

$

90,765

$

93,585

$

86,518

 Fixed income assets - beginning of period

44,211

45,821

49,003

Sales and other inflows

2,451

2,149

3,377

Redemptions/outflows

(3,281)

(3,697)

(3,375)

Net flows

(830)

(1,548)

2

Assets acquired(3)

-

-

472

Exchanges

(99)

(151)

(22)

Market value change

57

89

224

 Fixed income assets - end of period

$

43,339

$

44,211

$

49,679

 Floating-rate income assets -  beginning of period

41,821

38,170

26,388

Sales and other inflows

4,786

5,742

3,260

Redemptions/outflows

(2,705)

(2,207)

(1,359)

Net flows

2,081

3,535

1,901

Exchanges

54

145

33

Market value change

117

(29)

334

 Floating-rate income assets - end of period

$

44,073

$

41,821

$

28,656

 Alternative assets -  beginning of period

15,212

16,098

12,864

Sales and other inflows

1,089

1,271

1,809

Redemptions/outflows

(2,989)

(1,903)

(1,055)

Net flows

(1,900)

(632)

754

Assets acquired(3)

-

-

650

Exchanges

(48)

(47)

(13)

Market value change

(93)

(207)

90

 Alternative assets - end of period

$

13,171

$

15,212

$

14,345

 Implementation services assets - beginning of period

85,637

77,673

30,302

Sales and other inflows

17,421

13,177

6,479

Redemptions/outflows

(16,010)

(8,490)

(3,316)

Net flows

1,411

4,687

3,163

Assets acquired(3)

-

-

32,064

Exchanges

(453)

(104)

-

Market value change

415

3,381

2,891

 Implementation services assets - end of period

$

87,010

$

85,637

$

68,420

 Long-term assets - beginning of period

280,466

268,536

199,339

Sales and other inflows

29,532

25,506

19,421

Redemptions/outflows

(30,606)

(21,621)

(14,064)

Net flows

(1,074)

3,885

5,357

Assets acquired(3)

-

-

34,758

Exchanges

(34)

9

(10)

Market value change

(1,000)

8,036

8,174

 Total long-term assets - end of period

$

278,358

$

280,466

$

247,618

 Cash management fund assets - end of period

211

203

155

 Total assets under management - end of period

$

278,569

$

280,669

$

247,773

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

(2)  Includes assets in balanced accounts holding income securities.

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

 

Attachment 6

 Eaton Vance Corp.

 Consolidated Net Flows by Investment Vehicle(1)

 (in millions)

Three Months Ended

January 31,

October 31,

January 31,

2014

2013

2013

 Long-term fund assets - beginning of period

$

133,198

$

129,042

$

113,249

Sales and other inflows

10,234

10,299

9,079

Redemptions/outflows

(10,262)

(8,653)

(6,876)

Net flows

(28)

1,646

2,203

Assets acquired(2)

-

-

638

Exchanges

(34)

(17)

(19)

Market value change

(1,152)

2,527

3,091

 Long-term fund assets - end of period

$

131,984

$

133,198

$

119,162

 Institutional separate account assets - beginning of period

95,724

89,473

43,338

Sales and other inflows

16,802

12,742

6,785

Redemptions/outflows

(17,472)

(9,756)

(3,821)

Net flows

(670)

2,986

2,964

Assets acquired(2)

-

-

34,120

Exchanges

-

26

5

Market value change

(185)

3,239

2,923

 Institutional separate account assets - end of period

$

94,869

$

95,724

$

83,350

 High-net-worth separate account assets - beginning of period

19,699

19,071

15,036

Sales and other inflows

714

832

1,379

Redemptions/outflows

(1,104)

(1,313)

(1,198)

Net flows

(390)

(481)

181

Exchanges

-

(1)

(15)

Market value change

65

1,110

1,043

 High-net-worth separate account assets - end of period

$

19,374

$

19,699

$

16,245

 Retail managed account assets - beginning of period

31,845

30,950

27,716

Sales and other inflows

1,782

1,633

2,178

Redemptions/outflows

(1,768)

(1,899)

(2,169)

Net flows

14

(266)

9

Exchanges

-

1

19

Market value change

272

1,160

1,117

 Retail managed account assets - end of period

$

32,131

$

31,845

$

28,861

 Total long-term assets - beginning of period

280,466

268,536

199,339

Sales and other inflows

29,532

25,506

19,421

Redemptions/outflows

(30,606)

(21,621)

(14,064)

Net flows

(1,074)

3,885

5,357

Assets acquired(2)

-

-

34,758

Exchanges

(34)

9

(10)

Market value change

(1,000)

8,036

8,174

 Total long-term assets - end of period

$

278,358

$

280,466

$

247,618

 Cash management fund assets - end of period

211

203

155

 Total assets under management - end of period

$

278,569

$

280,669

$

247,773

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

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

 

Attachment 7

 Eaton Vance Corp.

 Consolidated Assets under Management by Investment Affiliate (1)

 (in millions)

January 31,

October 31,

%

January 31,

%

2014

2013

Change

2013

Change

 Eaton Vance Management(2)

$

142,931

$

144,693

-1%

$

134,554

6%

 Parametric

116,442

117,044

-1%

96,725

20%

 Atlanta Capital

19,196

18,932

1%

16,494

16%

 Total

$

278,569

$

280,669

-1%

$

247,773

12%

(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)

January 31,

October 31,

%

January 31,

%

2014

2013

Change

2013

Change

 Equity(2)

$

90,765

$

93,585

-3%

$

86,518

5%

 Fixed income

43,339

44,211

-2%

49,679

-13%

 Floating-rate income

44,073

41,821

5%

28,656

54%

 Alternative

13,171

15,212

-13%

14,345

-8%

 Implementation services

87,010

85,637

2%

68,420

27%

 Cash management

211

203

4%

155

36%

 Total

$

278,569

$

280,669

-1%

$

247,773

12%

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

(2)   Includes 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

January 31,

October 31,

January 31,

2014

2013

2013

 Eaton Vance distributed:

 Eaton Vance sponsored funds - beginning of period(1)

$

211

$

173

$

37

Sales and other inflows

30

30

94

Redemptions/outflows

(25)

(3)

(5)

Net flows

5

27

89

Market value change

(4)

11

9

 Eaton Vance sponsored funds - end of period

$

212

$

211

$

135

 Eaton Vance distributed separate accounts - beginning of period(2)

$

1,574

$

1,515

$

-

Sales and other inflows

76

4

1,148

Redemptions/outflows

(5)

(32)

-

Net flows

71

(28)

1,148

Exchanges

(235)

-

-

Market value change

(27)

87

37

 Eaton Vance distributed separate accounts - end of period

$

1,383

$

1,574

$

1,185

 Total Eaton Vance distributed - beginning of period

$

1,785

$

1,688

$

37

Sales and other inflows

106

34

1,242

Redemptions/outflows

(30)

(35)

(5)

Net flows

76

(1)

1,237

Exchanges

(235)

-

-

Market value change

(31)

98

46

 Total Eaton Vance distributed - end of period

$

1,595

$

1,785

$

1,320

 Hexavest directly distributed - beginning of period(3)

$

15,136

$

14,046

$

12,073

Sales and other inflows

440

699

920

Redemptions/outflows

(960)

(488)

(263)

Net flows

(520)

211

657

Exchanges

235

-

-

Market value change

(308)

879

494

 Hexavest directly distributed - end of period

$

14,543

$

15,136

$

13,224

 Total Hexavest assets - beginning of period

$

16,921

$

15,734

$

12,110

Sales and other inflows

546

733

2,162

Redemptions/outflows

(990)

(523)

(268)

Net flows

(444)

210

1,894

Exchanges

-

-

-

Market value change

(339)

977

540

 Total Hexavest assets - end of period

$

16,138

$

16,921

$

14,544

(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 revenue, but

not investment advisory fees, 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

investment advisory 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.



RELATED LINKS

http://www.eatonvance.com