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

Nov 20, 2012, 08:45 ET from Eaton Vance Corp.

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 -