2014

Eaton Vance Corp. Report for the Three Months and Fiscal Year Ended October 31, 2012

BOSTON, Nov. 20, 2012 /PRNewswire/ -- Eaton Vance Corp. (NYSE: EV) today reported adjusted earnings per diluted share(1) of $0.53 for the fourth quarter of fiscal 2012, an increase of 23 percent over the $0.43 of adjusted earnings per diluted share in the third quarter of fiscal 2012 and up 13 percent from the $0.47 of adjusted earnings per diluted share in the fourth quarter of fiscal 2011.  Adjusted earnings per diluted share were $1.89 for the fiscal year ended October 31, 2012, 5.5 percent below the $2.00 of adjusted earnings per diluted share in the fiscal year ended October 31, 2011.

As determined under U.S. generally accepted accounting principles ("GAAP"), the Company earned $0.45 in the fourth quarter of fiscal 2012, $0.43 in the third quarter of fiscal 2012 and $0.40 in the fourth quarter of fiscal 2011. Adjusted earnings differed from GAAP earnings in the fourth quarter of fiscal 2012 and the fourth quarter of fiscal 2011 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 $0.08 and $0.07 per diluted share, respectively.  GAAP earnings were $1.72 per diluted share in the fiscal year ended October 31, 2012 compared to $1.75 per diluted share in the fiscal year ended October 31, 2011.  Non-controlling interest value adjustments reduced GAAP earnings by $0.17 and $0.25 per diluted share for the fiscal years ended October 31, 2012 and 2011, respectively.  The Company's adjusted and GAAP earnings per diluted share were increased $0.01 and $0.03 in the fiscal years ended October 31, 2012 and 2011, respectively, by gains related to the sale of the Company's equity interest in Lloyd George Management (BVI) Limited in the second quarter of fiscal 2011.

Net inflows of $2.2 billion into long-term funds and separate accounts in the fourth quarter of fiscal 2012 compare to net outflows of $1.4 billion and $2.7 billion in the third quarter of fiscal 2012 and the fourth quarter of fiscal 2011, respectively.  The Company's annualized internal growth rate (net inflows into long-term assets divided by beginning of period long-term assets managed) was 5 percent in the fourth quarter of fiscal 2012.  Net inflows of $0.2 billion in fiscal 2012 compare to net inflows of $3.9 billion in fiscal 2011.

"We are pleased to report higher managed assets, stronger gross and net flows, and improved earnings for our fourth quarter," said Thomas E. Faust Jr., Chairman and Chief Executive Officer.  "Eaton Vance enters fiscal 2013 with considerable momentum and good prospects for continued progress."

Assets under management were $199.5 billion on October 31, 2012, an increase of 3 percent from the $192.9 billion of managed assets on July 31, 2012 and an increase of 6 percent from managed assets of $188.2 billion on October 31, 2011. Assets under management on October 31, 2012 included $113.2 billion in long-term funds, $43.3 billion in institutional separate accounts, $15.0 billion in high-net-worth separate accounts, $27.7 billion in retail managed accounts and $0.2 billion in cash management fund assets. Average assets under management were $196.6 billion in the fourth quarter of fiscal 2012, up 2 percent from $192.8 billion in the third quarter of fiscal 2012 and up 4 percent from $188.2 billion in the fourth quarter of fiscal 2011.  The sequential increase in ending assets under management in the fourth quarter of fiscal 2012 primarily reflects long-term net inflows of $2.2 billion and market price appreciation of $4.5 billion.

As shown in Attachment 6, consolidated gross sales and other inflows were $14.4 billion in the fourth quarter of fiscal 2012, up 32 percent from $10.9 billion in the third quarter of fiscal 2012 and up 30 percent from $11.1 billion in the fourth quarter of fiscal 2011. Gross redemptions and other outflows were $12.3 billion in the fourth quarter of fiscal 2012, down 1 percent from $12.4 billion in the third quarter of fiscal 2012 and down 11 percent from $13.8 billion in the fourth quarter of fiscal 2011.    

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

 

Financial Highlights

















Three Months Ended



(in thousands, except per share figures)











October 31,

July 31,

October 31,



2012 

2012

2011









Revenue

$

309,889

$

298,771

$

297,323

Expenses


203,544 


203,755


192,675

Operating income


106,345 


95,016


104,648









Operating margin


34%


32%


35%









Non-operating income (expense)


3,993 


1,875


(21,782)

Income taxes


(37,655)


(34,379)


(37,665)

Equity in net income of affiliates, net of tax


1,758 


175


387

Net income


 74,441 


62,687


45,588

Net (income) loss attributable to non-controlling








 and other beneficial interests


(21,323)


(12,481)


1,232

Net income attributable to








Eaton Vance Corp. shareholders

$

53,118

$

50,206

$

46,820

Adjusted net income attributable to Eaton








Vance Corp. shareholders(1)

$

62,988

$

51,002

$

55,726









Earnings per diluted share

$

0.45

$

0.43

$

0.40









Adjusted earnings per diluted share(1)

$

0.53

$

0.43

$

0.47

On August 6, 2012, the Company completed the purchase of a 49 percent interest in Hexavest Inc. ("Hexavest"), a Montreal-based investment advisor that provides discretionary management of equity and tactical asset allocation strategies using a predominantly top-down investment style. As of October 31, 2012, Hexavest managed $12.1 billion of client assets, an increase of 11 percent from the $11.0 billion of managed assets on August 6, 2012. Attachment 8 summarizes assets under management and asset flow information for Hexavest.

On November 11, 2012, the Company's subsidiary Parametric Portfolio Associates LLC announced the signing of a definitive agreement to acquire the business of The Clifton Group Investment Management Company ("Clifton").  Based in Minneapolis, Clifton specializes in providing futures- and options-based overlay services and custom risk management solutions to institutional investors.  As of September 30, 2012, Clifton managed $33.4 billion of funded and overlay assets on behalf of approximately 180 institutional clients.  Completion of the transaction is expected on or about December 31, 2012 and is subject to certain customary closing conditions. 

Fourth Quarter Fiscal 2012 vs. Third Quarter Fiscal 2012

In the fourth quarter of fiscal 2012, revenue increased 4 percent to $309.9 million from revenue of $298.8 million in the third quarter of fiscal 2012.  Investment advisory and administrative fees were up 4 percent in the fourth quarter of fiscal 2012 compared to the third quarter of fiscal 2012, primarily due to a 2 percent increase in average assets under management and a modestly higher investment advisory and administrative effective fee rate.  Performance fees contributed $3.7 million to investment advisory and administrative fees in the fourth quarter of fiscal 2012. Distribution and service fees revenues increased 1 percent on a combined basis, reflecting an increase in average managed assets in fund share classes that are subject to such fees.

Expenses of $203.5 million in the fourth quarter of fiscal 2012 were substantially unchanged from $203.8 million in the third quarter of fiscal 2012, reflecting increases in compensation, distribution and service fee expenses reduced by lower amortization of deferred sales commissions and decreases in fund expenses and other expenses. The increase in compensation expense primarily reflects increases in sales- and operating income-based incentives. Gross sales and other inflows, which drive sales-based incentives, were up 32 percent in the fourth quarter of fiscal 2012 compared to the third quarter of fiscal 2012.  Pre-bonus adjusted operating income, which drives operating income-based incentives, was up 10 percent for the same period. The increase in distribution expense reflects an increase in Class A share commissions, partly offset by decreases in promotional expenses. The decrease in amortization of deferred sales commissions largely reflects changes in product mix away from fund share classes to which these expenses apply.  Fund expenses decreased 4 percent from the third quarter of fiscal 2012 due to lower subsidies on start-up funds and decreased expenses borne by the Company on funds for which it receives an all-in fee.  The 6 percent decrease in other expenses reflects lower professional services costs.

Operating income was up 12 percent to $106.3 million in the fourth quarter of fiscal 2012 from $95.0 million in the third quarter of fiscal 2012.

Non-operating income (expense) contributed $4.0 million to income before taxes in the fourth quarter of fiscal 2012, compared to a contribution of $1.9 million in the third quarter of fiscal 2012.  The increase in non-operating income (expense) is primarily attributable to a $3.6 million increase in gains and other investment income earned on the Company's investments in sponsored products offset by a $1.2 million increase in interest expense recognized by the Company's consolidated collateralized loan obligation ("CLO") entity.

The Company's effective tax rate, calculated as a percentage of income before income taxes and equity in net income of affiliates, was 34.1 percent in the fourth quarter of fiscal 2012. Excluding the impact of CLO entity income (expense) borne by other beneficial interest holders, the Company's effective tax rate was approximately 36.1 percent for the quarter. 

Equity in net income of affiliates increased by $1.6 million in the fourth quarter of fiscal 2012 compared to the third quarter of fiscal 2012, primarily reflecting the Company's acquisition of a 49 percent equity interest in Hexavest on August 6, 2012.  Equity in net income of affiliates for the fourth quarter of fiscal 2012 includes $1.9 million related to Hexavest. 

Net income attributable to non-controlling and other beneficial interests totaled $21.3 million in the fourth quarter of fiscal 2012 and $12.5 million in the third quarter of fiscal 2012. As shown in Attachment 3, the increase can be primarily attributed to an increase in non-controlling interest value adjustments. Included in net income attributable to non-controlling and other beneficial interests in the fourth quarter of fiscal 2012 were $9.9 million of non-controlling interest value adjustments relating to our subsidiary Atlanta Capital Management, based on an October 31 enterprise value measurement.

Fourth Quarter Fiscal 2012 vs. Fourth Quarter Fiscal 2011

In the fourth quarter of fiscal 2012, revenue increased 4 percent to $309.9 million from revenue of $297.3 million in the fourth quarter of fiscal 2011.  Investment advisory and administrative fees were up 6 percent due to a 4 percent increase in average assets under management and modestly higher investment advisory and administrative effective fee rate. Performance fees contributed $3.7 million to investment advisory and administrative fees in the fourth quarter of fiscal 2012. Distribution and service fees were down 5 percent on a combined basis, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.

Expenses increased 6 percent to $203.5 million in the fourth quarter of fiscal 2012 from $192.7 million in the fourth quarter of fiscal 2011, reflecting increases in compensation and distribution expense, offset by lower service fees, reduced amortization of deferred sales commissions and lower fund expenses. Increases in compensation expense reflect increases in sales- and operating income-based incentives, higher employee headcount, increased salaries and higher stock-based compensation. Gross sales and other inflows, which drive sales-based incentives, were up 30 percent year-over-year, while pre-bonus adjusted operating income, which drives operating-income based incentives, was up 10 percent over the same period. The increase in distribution expense can be attributed to an increase in Class A share commissions and Class C share distribution payments made to third-party intermediaries. The decreases in service fee expense and amortization of deferred sales commissions largely reflect changes in product mix away from fund share classes to which these expenses apply. The decrease in fund-related expenses can be attributed primarily to lower sub-advisory expenses. Other expenses were substantially unchanged from the prior year, as decreases in professional fees were offset by an increase in spending for travel and higher facilities-related expenses.

Operating income was up 2 percent to $106.3 million in the fourth quarter of fiscal 2012 from $104.6 million in the fourth quarter of fiscal 2011.

Non-operating income contributed $4.0 million to income before taxes in the fourth quarter of fiscal 2012 compared to non-operating expense of $21.8 million in the fourth quarter of fiscal 2011. The improvement in non-operating income (expense) reflects a $20.0 million increase in gains and other investment income recognized by the Company's consolidated CLO entity and a $7.5 million increase in gains and other investment income earned on the Company's investments in sponsored products. 

Equity in net income of affiliates increased $1.4 million from the fourth quarter of fiscal 2011, and includes $1.9 million related to the Company's 49% equity interest in Hexavest acquired on August 6, 2012.

Net income attributable to non-controlling and other beneficial interests was $21.3 million in the fourth quarter of fiscal 2012 compared to a loss of $1.2 million in the fourth quarter of fiscal 2011. As shown in Attachment 3, the change can be primarily attributed to an improvement in the financial performance of the Company's consolidated CLO entity.  Included in net income attributable to non-controlling and other beneficial interests in the fourth quarter of fiscal 2012 and 2011 were $9.9 million and $8.9 million, respectively, of non-controlling interest value adjustments relating to our subsidiary Atlanta Capital Management, based on an annual October 31 enterprise value measurement.

Balance Sheet Information

Cash and cash equivalents totaled $462.1 million on October 31, 2012, with no outstanding borrowings against the Company's $300 million credit facility.  During fiscal 2012, the Company used $106.5 million to repurchase and retire approximately 4.0 million shares of its Non-Voting Common Stock under its repurchase authorization.  Approximately 3.9 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 EST today to discuss the financial results for the three months and fiscal year ended October 31, 2012. To participate in the conference call, please call 877-407-0778 (domestic) or 201-689-8565 (international) and refer to "Eaton Vance Corp. Fourth 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 403627.

About Eaton Vance Corp.

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

Forward-Looking Statements

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

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



















Attachment 1



Eaton Vance Corp.


Summary of Results of Operations


(in thousands, except per share figures)















































Three Months Ended


Fiscal Year Ended











% Change

% Change












October 31,

July 31,

October 31,

Q4 2012 to

Q4 2012 to


October 31,

October 31,

%





2012

2012

2011

Q3 2012

Q4 2011


2012

2011

Change


Revenue:








































Investment advisory and administrative fees

$

255,063

$

244,655

$

239,751

4

%

6

%


$

988,058

$

996,222

(1)

%



Distribution and underwriter fees


22,278


22,066


23,079

1


(3)




89,410


102,979

(13)




Service fees


31,221


30,760


33,281

1


(6)




126,345


144,530

(13)




Other revenue


1,327


1,290


1,212

3


9




5,223


4,875

7





Total revenue


309,889


298,771


297,323

4


4




1,209,036


1,248,606

(3)



Expenses:








































Compensation and related costs


96,446


94,700


81,007

2


19




385,395


369,927

4




Distribution expense


32,956


32,670


32,577

1


1




130,914


132,664

(1)




Service fee expense


28,559


28,165


30,186

1


(5)




113,485


124,517

(9)




Amortization of deferred sales commissions


4,495


4,593


7,277

(2)


(38)




20,441


35,773

(43)




Fund expenses


6,929


7,205


7,635

(4)


(9)




27,375


25,295

8




Other expenses


34,159


36,422


33,993

(6)


-




138,434


134,198

3





Total expenses


203,544


203,755


192,675

-


6




816,044


822,374

(1)



Operating income


106,345


95,016


104,648

12


2




392,992


426,232

(8)



Non-operating income (expense):




















Gains (losses) and other investment





















income, net


5,517


1,927


(1,998)

186


NM




18,417


19,408

(5)




Interest expense


(8,580)


(8,525)


(8,413)

1


2




(33,930)


(33,652)

1




Other income (expense) of consolidated





















CLO entity:





















     Gains (losses) and other investment




















          income, net


12,659


12,872


(7,342)

(2)


NM




44,706


(17,037)

NM





     Interest expense


(5,603)


(4,399)


(4,029)

27


39




(18,447)


(13,575)

36





Total non-operating income (expense)


3,993


1,875


(21,782)

113


NM




10,746


(44,856)

NM
























Income before income taxes and equity



















   in net income of affiliates

110,338


96,891


82,866

14


33




403,738


381,376

6



Income taxes


(37,655)


(34,379)


(37,665)

10


-




(142,385)


(156,844)

(9)



Equity in net income of affiliates, net of tax


1,758


175


387

905


354




3,415


3,042

12



Net income


74,441


62,687


45,588

19


63




264,768


227,574

16



Net (income) loss attributable to non-



















   controlling and other beneficial interests


(21,323)


(12,481)


1,232

71


NM




(61,303)


(12,672)

384



Net income attributable to



















   Eaton Vance Corp. Shareholders

$

53,118

$

50,206

$

46,820

6


13



$

203,465

$

214,902

(5)
























Earnings per share:



















Basic

$

0.46

$

0.44

$

0.41

5


12



$

1.76

$

1.82

(3)




Diluted

$

0.45

$

0.43

$

0.40

5


13



$

1.72

$

1.75

(2)
























Weighted average shares outstanding:


















Basic


112,504


112,110


112,939

-


-




112,359


115,326

(3)




Diluted


115,524


114,591


115,238

1


-




115,126


119,975

(4)
























Dividends declared per share

$

0.20

$

0.19

$

0.19

5


5



$

0.77

$

0.73

5






























Attachment 2


Eaton Vance Corp.


Reconciliation of net income attributable to Eaton Vance Corp. shareholders


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


 Corp. shareholders and adjusted earnings per diluted share











































Three Months Ended


Fiscal Year Ended










% Change

% Change










October 31,

July 31,

October 31,

Q4 2012 to

Q4 2012 to


October 31,

October 31,

%


(in thousands, except per share figures)

2012

2012

2011

Q3 2012

Q4 2011


2012

2011

Change






















Net income attributable to Eaton Vance



















    Corp. shareholders

$

53,118

$

50,206

$

46,820

6

%

13

%


$

203,465

$

214,902

(5)

%





















Non-controlling interest value adjustments


9,870


796


8,906

NM


11




19,866


30,216

(34)






















Adjusted net income attributable to Eaton



















    Vance Corp. shareholders

$

62,988

$

51,002

$

55,726

24


13



$

223,331

$

245,118

(9)










































Earnings per diluted share

$

0.45

$

0.43

$

0.40

5


13



$

1.72

$

1.75

(2)






















Non-controlling interest value adjustments


0.08


-


0.07

NM


14




0.17


0.25

(32)























Adjusted earnings per diluted share

$

0.53

$

0.43

$

0.47

23


13



$

1.89

$

2.00

(6)




 



























Attachment 3


Eaton Vance Corp.


Reconciliation of net income attributable


to non-controlling and other beneficial interests


































Three Months Ended


Fiscal Year Ended



October 31,

July 31,

October 31,


October 31,

October 31,


(in thousands)

2012

2012

2011


2012

2011


















Consolidated funds

$

(1,186)

$

(839)

$

310


$

(4,353)

$

(5,319)

















Majority-owned subsidiaries


(4,053)


(3,354)


(2,576)



(14,518)


(11,670)


















Non-controlling interest value adjustments


(9,870)


(796)


(8,906)



(19,866)


(30,216)

















Consolidated CLO entity


(6,214)


(7,492)


12,404



(22,566)


34,533


















Net (income) loss attributable to non-controlling















interests and other beneficial interests

$

(21,323)

$

(12,481)

$

1,232


$

(61,303)

$

(12,672)









Attachment 4


Eaton Vance Corp.


Balance Sheet


(in thousands, except per share figures)








October 31,




October 31,




2012




2011


Assets
























Cash and cash equivalents

$

462,076



$

510,913


Investment advisory fees and other receivables


133,589




130,525


Investments


486,933




287,735


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








          Cash and cash equivalents


36,758




16,521


          Bank loans and other investments


430,583




462,586


          Other assets


1,107




2,715


Deferred sales commissions


19,336




27,884


Deferred income taxes


51,234




41,343


Equipment and leasehold improvements, net


54,889




67,227


Intangible assets, net


59,228




67,224


Goodwill


154,636




142,302


Other assets


89,122




74,325


   Total assets

$

1,979,491



$

1,831,300










Liabilities, Temporary Equity and Permanent Equity
















Liabilities:
















Accrued compensation

$

145,338



$

137,431


Accounts payable and accrued expenses


59,397




51,333


Dividend payable


23,250




21,959


Debt


500,000




500,000


Liabilities of consolidated CLO entity:








          Senior and subordinated note obligations


446,605




477,699


          Other liabilities


766




5,193


Other liabilities


91,785




75,557


   Total liabilities


1,267,141




1,269,172


Commitments and contingencies
















Temporary Equity:








Redeemable non-controlling interests


98,765




100,824


          Total temporary equity


98,765




100,824










Permanent Equity:








Voting common stock, par value $0.00390625 per share:








   Authorized, 1,280,000 shares








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


2




2


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








   Authorized, 190,720,000 shares








   Issued, 115,878,384 and 115,223,827 shares, respectively


453




450


Additional paid-in capital


26,730




-


Notes receivable from stock option exercises


(4,155)




(4,441)


Accumulated other comprehensive income


3,923




1,340


Appropriated retained earnings (deficit)


18,699




(3,867)


Retained earnings


566,420




466,931


   Total Eaton Vance Corp. shareholders' equity


612,072




460,415


Non-redeemable non-controlling interests


1,513




889


   Total permanent equity


613,585




461,304


Total liabilities, temporary equity and permanent equity

$

1,979,491



$

1,831,300























Attachment 5


Eaton Vance Corp.


Net Flows by Investment Mandate(1)


(in millions)





















Three Months Ended


Fiscal Year Ended




October 31,


July 31,


October 31,


October 31,


October 31,




2012 


2012


2011


2012


2011


Equity assets - beginning of period(2)

$

108,595


$

114,903


$

117,055


$

108,859


$

107,500



Sales and other inflows


 5,944 



4,604



6,144



23,679



29,973



Redemptions/outflows


 (7,223)



(7,656)



(7,316)



(30,456)



(29,168)



Net flows


 (1,279)



(3,052)



(1,172)



(6,777)



805



Assets acquired


 - 



-



-



-



352



Exchanges


 48 



(19)



(34)



24



35



Market value change


 3,732 



(3,237)



(6,990)



8,990



167


Equity assets - end of period

$

111,096


$

108,595


$

108,859


$

111,096


$

108,859



















Fixed income assets - beginning of period

48,198



46,891



43,813



43,708



46,119



Sales and other inflows


 3,140 



2,886



2,426



12,278



10,336



Redemptions/outflows


 (2,752)



(1,973)



(2,555)



(9,455)



(11,827)



Net flows


 388 



913



(129)



2,823



(1,491)



Exchanges


 13 



30



98



84



(180)



Market value change


 404 



364



(74)



2,388



(740)


Fixed income assets - end of period

$

49,003


$

48,198


$

43,708


$

49,003


$

43,708



















Floating-rate income assets -  beginning
















of period


 25,245 



24,847



25,586



24,322



20,003



Sales and other inflows


 2,188 



2,091



1,565



7,401



9,331



Redemptions/outflows


 (1,387)



(1,535)



(2,218)



(5,662)



(5,220)



Net flows


 801 



556



(653)



1,739



4,111



Exchanges


 21 



5



(129)



45



53



Market value change


 321 



(163)



(482)



282



155


Floating-rate income assets - end of period

$

26,388


$

25,245


$

24,322


$

26,388


$

24,322



















Alternative assets -  beginning of period

10,600



10,506



11,761



10,646



10,482



Sales and other inflows


 3,166 



1,342



930



6,725



5,250



Redemptions/outflows


 (908)



(1,201)



(1,708)



(4,336)



(4,784)



Net flows


 2,258 



141



(778)



2,389



466



Exchanges


 (19)



(13)



(5)



(104)



(79)



Market value change


 13 



(34)



(332)



(79)



(223)


Alternative assets - end of period

$

12,852


$

10,600


$

10,646


$

12,852


$

10,646



















Long-term assets - beginning of period

192,638



197,147



198,215



187,535



184,104



Sales and other inflows


 14,438 



10,923



11,065



50,083



54,890



Redemptions/outflows


 (12,270)



(12,365)



(13,797)



(49,909)



(50,999)



Net flows


 2,168 



(1,442)



(2,732)



174



3,891



Assets acquired


 - 



-



-



-



352



Exchanges


 63 



3



(70)



49



(171)



Market value change


 4,470 



(3,070)



(7,878)



11,581



(641)


Total long-term assets - end of period

$

199,339


$

192,638


$

187,535


$

199,339


$

187,535



















Cash management fund assets -

















end of period


 169 



220



669



169



669


Total assets under management -

















end of period

$

199,508


$

192,858


$

188,204


$

199,508


$

188,204



















(1)  Consolidated Eaton Vance Corp.  See Attachment 8 for managed assets and flows of 49%-owned Hexavest Inc.


(2)  Includes balanced accounts holding income securities.














 














Attachment 6


Eaton Vance Corp.


Net Flows by Investment Vehicle (1)


(in millions)





Three Months Ended


Fiscal Year Ended





October 31,


July 31,


October 31,


October 31,


October 31,





2012 


2012


2011


2012


2011


Long-term fund assets -


















beginning of period


$

110,257


$

114,029


$

119,976


$

111,705


$

113,978



Sales and other inflows



7,261



6,266



6,195



27,080



33,035



Redemptions/outflows



(6,410)



(8,554)



(9,294)



(30,895)



(32,486)



Net flows



851



(2,288)



(3,099)



(3,815)



549



Exchanges



-



3



(70)



(13)



(175)



Market value change



2,141



(1,487)



(5,102)



5,372



(2,647)


Long-term fund assets - end of period

$

113,249


$

110,257


$

111,705


$

113,249


$

111,705




















Institutional separate account assets -


















beginning of period



40,285



40,883



38,992



38,003



34,593



Sales and other inflows



5,149



2,262



2,954



12,496



12,350



Redemptions/outflows



(3,535)



(1,970)



(2,453)



(10,514)



(9,832)



Net flows



1,614



292



501



1,982



2,518



Exchanges



27



-



-



38



(18)



Market value change



1,412



(890)



(1,490)



3,315



910


Institutional separate account assets -

















end of period

$

43,338


$

40,285


$

38,003


$

43,338


$

38,003




















High-net-worth separate account assets -


















beginning of period



14,682



14,704



13,588



13,256



11,883



Sales and other inflows



498



752



598



3,609



2,848



Redemptions/outflows



(657)



(540)



(494)



(2,283)



(2,419)



Net flows



(159)



212



104



1,326



429



Assets acquired



-



-



-



-



352



Exchanges



9



-



(11)



(990)



(8)



Market value change



504



(234)



(425)



1,444



600


High-net-worth separate account assets -

















end of period

$

15,036


$

14,682


$

13,256


$

15,036


$

13,256




















Retail managed account assets -


















beginning of period



27,414



27,531



25,659



24,571



23,650



Sales and other inflows



1,530



1,643



1,318



6,898



6,657



Redemptions/outflows



(1,668)



(1,301)



(1,556)



(6,217)



(6,262)



Net flows



(138)



342



(238)



681



395



Exchanges



27



-



11



1,014



30



Market value change



413



(459)



(861)



1,450



496


Retail managed account assets - end of period

$

27,716


$

27,414


$

24,571


$

27,716


$

24,571




















Total long-term assets -


















beginning of period



192,638



197,147



198,215



187,535



184,104



Sales and other inflows



14,438



10,923



11,065



50,083



54,890



Redemptions/outflows



(12,270)



(12,365)



(13,797)



(49,909)



(50,999)



Net flows



2,168



(1,442)



(2,732)



174



3,891



Assets acquired



-



-



-



-



352



Exchanges



63



3



(70)



49



(171)



Market value change



4,470



(3,070)



(7,878)



11,581



(641)


Total long-term assets - end of period

$

199,339


$

192,638


$

187,535


$

199,339


$

187,535




















Cash management fund assets - end of period


169



220



669



169



669


Total assets under management -

















end of period


$

199,508


$

192,858


$

188,204


$

199,508


$

188,204




















(1)   Consolidated Eaton Vance Corp.  See Attachment 8 for managed assets and flows of 49%-owned Hexavest Inc.






 















Attachment 7


Eaton Vance Corp.


Assets under Management


by Investment Mandate(1)


 (in millions)





















October 31,


July 31,


%


October 31,


%





2012 


2012


Change


2011


Change


Equity(2)

$

111,096


$

108,595


2%


$

108,859


2%


Fixed income


 49,003 



48,198


2%



43,708


12%