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

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.



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