Eaton Vance Corp. Report for the Three and Six Month Periods Ended April 30, 2015 - NEOS ETF Trust Mast Global Battery Recycling & Production ETF (ARCA:EV)

BOSTON, May 20, 2015 /PRNewswire/ -- Eaton Vance Corp. EV today reported adjusted earnings per diluted share^([1]) of $0.58 for the second quarter of fiscal 2015, a decrease of 2 percent from $0.59 of adjusted earnings per diluted share in the second quarter of fiscal 2014 and a decrease of 5 percent from $0.61 of adjusted earnings per diluted share in the first quarter of fiscal 2015.

As determined under U.S. generally accepted accounting principles ("GAAP"), the Company earned $0.58 per diluted share in the second quarter of fiscal 2015, $0.59 per diluted share in the second quarter of fiscal 2014 and $0.24 per diluted share in the first quarter of fiscal 2015. Adjusted earnings differed from GAAP earnings in the first quarter of fiscal 2015 to reflect the payment of $73.0 million, or approximately $0.37 per diluted share, to terminate service and additional compensation arrangements in place with a major distribution partner for certain Eaton Vance closed-end funds.

Adjusted earnings per diluted share were $1.19 in the six months ended April 30, 2015 compared to $1.17 in the six months ended April 30, 2014, an increase of 2 percent. The Company's GAAP earnings per diluted share were $0.82 and $1.15, respectively, for the compared semi-annual periods.

Consolidated net inflows of $6.8 billion in the second quarter of fiscal 2015 represent a 9 percent annualized internal growth rate (net inflows divided by beginning of period assets managed). For comparison, the Company had net outflows of $0.9 billion in the second quarter of fiscal 2014 and net inflows of $1.4 billion in the first quarter of fiscal 2015.

"The Company's solid organic growth in the second fiscal quarter reflects improved flow results across our businesses," said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "That growth, combined with progress advancing our NextShares™ actively managed exchange-traded product initiative toward market introduction, sets the stage for earnings growth over coming quarters."

Consolidated assets under management were $311.0 billion on April 30, 2015, an increase of 9 percent from the $285.9 billion of managed assets on April 30, 2014 and an increase of 5 percent from the $295.7 billion of managed assets on January 31, 2015. The year-over-year increase in assets under management reflects market appreciation of $12.3 billion and net inflows of $12.9 billion. The sequential quarterly increase in assets under management reflects market appreciation of $8.6 billion and net inflows of $6.8 billion.

Average consolidated assets under management were $303.4 billion in the second quarter of fiscal 2015, up 7 percent from $284.4 billion in the second quarter of fiscal 2014 and up 2 percent from $297.5 billion in the first quarter of fiscal 2015.

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 $30.2 billion in the second quarter of fiscal 2015, up 33 percent from $22.8 billion in the second quarter of fiscal 2014 and down 2 percent from $30.9 billion in the first quarter of fiscal 2015. Gross redemptions and other outflows were $23.4 billion in the second quarter of fiscal 2015, a decrease of 1 percent from $23.7 billion in the second quarter of fiscal 2014 and down 20 percent from $29.5 billion in the first quarter of fiscal 2015.

As of April 30, 2015, 49 percent-owned affiliate Hexavest, Inc. ("Hexavest") managed $15.6 billion of client assets, a decrease of 8 percent from the $17.1 billion of managed assets on April 30, 2014 and an increase of 4 percent from the $15.0 billion of managed assets on January 31, 2015. Hexavest-managed funds and separate accounts had net outflows of $0.2 billion in the second quarter of fiscal 2015, $0.1 billion in the second quarter of fiscal 2014 and $1.4 billion in the first quarter of fiscal 2015. Attachment 9 summarizes assets under management and asset flow information for Hexavest. Other than Eaton Vance-sponsored funds for which Hexavest is adviser or sub-adviser, 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)

		April 30,		January 31,		April 30,
		2015		2015		2014
Revenue		$	351,664	$	354,930	$	354,061
Expenses			229,443		304,370		228,758
Operating income			122,221		50,560		125,303
Operating margin			34.8%		14.2%		35.4%
Non-operating expense			(5,389)		(4,427)		(7,226)
Income taxes			(43,896)		(16,770)		(45,249)
Equity in net income of affiliates, net of tax			2,957		3,146		5,219
Net income			75,893		32,509		78,047
Net income attributable to non-controlling
	and other beneficial interests		(5,509)		(3,506)		(3,146)
Net income attributable to
	Eaton Vance Corp. shareholders	$	70,384	$	29,003	$	74,901
Adjusted net income attributable to Eaton
	Vance Corp. shareholders⁽¹⁾	$	70,381	$	74,098	$	74,901
Earnings per diluted share		$	0.58	$	0.24	$	0.59
Adjusted earnings per diluted share⁽¹⁾		$	0.58	$	0.61	$	0.59

Second Quarter Fiscal 2015 vs. Second Quarter Fiscal 2014

In the second quarter of fiscal 2015, revenue decreased 1 percent to $351.7 million from revenue of $354.1 million in the second quarter of fiscal 2014. Investment advisory and administrative fees were flat, reflecting a 7 percent increase in average consolidated assets under management offset by lower average effective fee rates. Performance fees were negligible in the second quarter of fiscal 2015 and contributed $1.0 million to investment advisory and administrative fees in the second quarter of fiscal 2014. Distribution and service fee revenues were down 5 percent and 8 percent, respectively, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.

Operating expenses were substantially unchanged in the second quarter of fiscal 2015 from the second quarter of fiscal 2014. Increases in compensation, fund-related and other operating expenses were offset by lower distribution and service fee expenses and reduced amortization of deferred sales commissions. The increase in compensation expense reflects higher stock-based compensation, sales-based incentives, salaries and benefits, offset by lower operating income-based bonus accruals. The increase in fund-related expenses reflects higher fund expenses borne by the Company on funds for which it earns an all-in fee. Other expenses increased 5 percent, reflecting higher information technology, facilities-related and other corporate expenses, offset by lower professional services and travel expenses. The decrease in service fee expense reflects lower average assets under management in funds subject to service fee payments. The decrease in distribution expense primarily reflects lower closed-end fund-related distribution expense following the first quarter fiscal 2015 termination of service and additional compensation arrangements in place with a major distribution partner as discussed above. The decrease in amortization of deferred sales commissions largely reflects decreases in Class B share and Class C share amortization, offset by an increase in private fund commission amortization.

Expenses in connection with the Company's NextShares initiative totaled approximately $1.8 million in the second quarter of fiscal 2015, an increase of 128 percent from $0.8 million in the second quarter of fiscal 2014.

During the second quarter of fiscal 2015, the Company and its wholly owned subsidiary Navigate Fund Solutions LLC ("Navigate") made progress advancing NextShares toward market introduction. In April, the Company filed amended registration statements with the U.S. Securities and Exchange Commission ("SEC") for 18 initial Eaton Vance NextShares funds and the NASDAQ Stock Exchange LLC filed with the SEC a request to list and trade each of the 18 funds. Navigate has to date entered into preliminary licensing and service agreements with ten fund advisers (including Eaton Vance) and continues to engage in active dialogue with numerous other fund sponsors about becoming licensees. The ten firms signed to date collectively manage over $500 billion in mutual fund assets and sponsor approximately 200 funds currently rated four or five stars by Morningstar. Conditional upon the timing of final regulatory approvals and market readiness, the Company is targeting launch of the initial NextShares funds in the second half of 2015.

Operating income was down 2 percent to $122.2 million in the second quarter of fiscal 2015 from $125.3 million in the second quarter of fiscal 2014. Operating margin declined to 34.8 percent in the second quarter of fiscal 2015 from 35.4 percent in the second quarter of fiscal 2014.

Non-operating expense totaled $5.4 million in the second quarter of fiscal 2015 compared to $7.2 million in the second quarter of fiscal 2014. The year-over-year change primarily reflects a $1.1 million positive change in gains (losses) and other investment income related to the Company's investments in sponsored products and a $0.7 million increase in income (expense) of the Company's consolidated CLO entities.

The Company's effective tax rate, calculated as a percentage of income before income taxes and equity in net income of affiliates, was 37.6 percent in the second quarter of fiscal 2015.

Equity in net income of affiliates decreased to $3.0 million in the second quarter of fiscal 2015 from $5.2 million in the second quarter of fiscal 2014. Equity in net income of affiliates in the second quarter of fiscal 2015 included $2.6 million of Company equity in the net income of Hexavest and $0.4 million of net income in a private equity partnership. Equity in net income of affiliates in the second quarter of fiscal 2014 included $2.6 million of Company equity in the net income of Hexavest, $2.2 million of gains (losses) and other income on the Company's investments in sponsored funds, and $0.4 million of net income in a private equity partnership.

As detailed in Attachment 3, net income attributable to non-controlling and other beneficial interests was $5.5 million in the second quarter of fiscal 2015 compared to $3.1 million in the second quarter of fiscal 2014.

Second Quarter Fiscal 2015 vs. First Quarter Fiscal 2015

In the second quarter of fiscal 2015, revenue decreased 1 percent to $351.7 million from $354.9 million in the first quarter of fiscal 2015. Investment advisory and administrative fees were flat, reflecting a 2 percent increase in average consolidated assets under management, offset by lower average effective fee rates and a reduction in the number of fee days. Performance fees were negligible in the second quarter of fiscal 2015 and contributed $0.1 million to investment advisory and administrative fees in the first quarter of fiscal 2015. Distribution and service fee revenues collectively decreased 5 percent, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.

Operating expenses decreased 25 percent to $229.4 million in the second quarter of fiscal 2015 from $304.4 million in the first quarter of fiscal 2015. Excluding the payment of $73.0 million to terminate service and additional compensation arrangements in place with a major distribution partner for certain Eaton Vance closed-end funds in the first quarter of fiscal 2015, operating expenses were down 1 percent in the second quarter of fiscal 2015 from the first quarter of fiscal 2015. The 1 percent decrease reflects lower compensation and distribution and service fee expenses and reduced amortization of deferred sales commissions, offset by higher fund-related and other operating expenses. The decrease in distribution expense (excluding the $73.0 million termination payment described above) reflects lower closed-end fund-related distribution expense following termination of the partner arrangements as described above. The decrease in compensation expense reflects lower operating income-based bonus accruals, reduced stock-based compensation and a decline in salary and benefit costs due to fewer payroll days in the second quarter, offset by higher sales-based incentives. The lower service fee expense reflects lower average assets under management in funds subject to service fee payments. The decrease in amortization of deferred sales commissions largely reflects lower Class C share amortization, offset by an increase in private fund commission amortization. The increase in fund-related expenses is attributable to higher fund expenses borne by the Company on funds for which it earns an all-in fee. Other expenses increased 7 percent, reflecting higher information technology, professional services, travel and other corporate expenses, offset by lower facilities-related expenses.

NextShares-related expenses grew from $1.3 million in the first quarter of fiscal 2015 to $1.8 million in the second quarter of fiscal 2015, an increase of 38 percent.

Operating income was up 142 percent to $122.2 million in the second quarter of fiscal 2015 from $50.6 million in the first quarter of fiscal 2015. Operating margin increased to 34.8 percent in the second quarter of fiscal 2015 from 14.2 percent in the first quarter of fiscal 2015. Excluding the $73.0 million termination payment described above, second quarter fiscal 2015 operating income was down 1 percent versus the first quarter of fiscal 2015.

Non-operating expense totaled $5.4 million in the second quarter of fiscal 2015 compared to $4.4 million in the first quarter of fiscal 2015, reflecting a $2.5 million decline in gains (losses) and other investment income related to the Company's investments in sponsored products and a $1.5 million improvement in income (expense) of the Company's consolidated CLO entity.

Equity in net income of affiliates decreased to $3.0 million in the second quarter of fiscal 2015 from $3.1 million in the first quarter of fiscal 2015. In the second quarter of fiscal 2015, equity in net income of affiliates included $2.6 million of Company equity in the net income of Hexavest and $0.4 million of net income in a private equity partnership. In the first quarter of fiscal 2015, equity in net income of affiliates included $2.9 million of Company equity in the net income of Hexavest, $0.1 million of gains (losses) and other income on the Company's investments in sponsored funds and $0.1 million of net income in a private equity partnership.

As detailed in Attachment 3, net income attributable to non-controlling and other beneficial interests was $5.5 million in the second quarter of fiscal 2015 and $3.5 million in the first quarter of fiscal 2015.

Balance Sheet Information

Cash and cash equivalents totaled $262.9 million on April 30, 2015, with no outstanding borrowings against the Company's $300 million credit facility. Included within investments is $120.1 million of holdings of short-term debt securities with maturities between 90 days and one year. During the first six months of fiscal 2015, the Company used $123.7 million to repurchase and retire approximately 3.0 million shares of its Non-Voting Common Stock under its repurchase authorizations. Of the current 8.0 million share repurchase authorization, approximately 7.6 million shares remain available.

Conference Call Information

Eaton Vance Corp. will host a conference call and webcast at 11:00 AM eastern time today to discuss the financial results for the six months ended April 30, 2015.To participate in the conference call, please call 877-201-0168 (domestic) or 647-788-4901 (international) and refer to "Eaton Vance Corp. Second Quarter Earnings." A webcast of the conference call can also be accessed via Eaton Vance's website, www.eatonvance.com.

A replay of the call will be available for one week by calling 855-859-2056 (domestic) or 404-537-3406 (international) or by accessing Eaton Vance's website, www.eatonvance.com. Listeners to the telephone replay must enter the confirmation code 47843435.

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, payments to end closed-end fund service and additional compensation arrangements, 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										Six Months Ended
									%		%
									Change		Change
									Q2 2015		Q2 2015
			April 30,		January 31,		April 30,		vs.		vs.		April 30,		April 30,		%
			2015		2015		2014		Q1 2015		Q2 2014		2015		2014		Change
Revenue:

	Investment advisory and administrative fees		$	300,624	$	301,813	$	300,136	-	%	-	%	$	602,437	$	604,849	-	%
	Distribution and underwriter fees			20,048		21,036		21,212	(5)		(5)			41,084		42,833	(4)
	Service fees			28,461		29,847		30,829	(5)		(8)			58,308		63,120	(8)
	Other revenue			2,531		2,234		1,884	13		34			4,765		3,520	35
		Total revenue		351,664		354,930		354,061	(1)		(1)			706,594		714,322	(1)
Expenses:

	Compensation and related costs			120,075		120,192		114,656	-		5			240,267		233,478	3
	Distribution expense			30,082		106,267		34,785	(72)		(14)			136,349		70,333	94
	Service fee expense			26,358		27,780		28,281	(5)		(7)			54,138		57,486	(6)
	Amortization of deferred sales commissions			3,692		3,728		4,354	(1)		(15)			7,420		9,324	(20)
	Fund-related expenses			8,932		8,706		8,455	3		6			17,638		16,908	4
	Other expenses			40,304		37,697		38,227	7		5			78,001		77,290	1
		Total expenses		229,443		304,370		228,758	(25)		-			533,813		464,819	15
Operating income				122,221		50,560		125,303	142		(2)			172,781		249,503	(31)
Non-operating income (expense):
	Gains (losses) and other investment
		income, net		347		2,802		(738)	(88)		NM			3,149		(325)	NM
	Interest expense			(7,337)		(7,336)		(7,404)	-		(1)			(14,673)		(14,804)	(1)
	Other income (expense) of consolidated
		collateralized loan obligation
		("CLO") entities:
		Gains and other investment
		income, net		2,212		1,301		5,104	70		(57)			3,513		13,813	(75)
		Interest and other expense		(611)		(1,194)		(4,188)	(49)		(85)			(1,805)		(12,023)	(85)
		Total non-operating expense		(5,389)		(4,427)		(7,226)	22		(25)			(9,816)		(13,339)	(26)

Income before income taxes and equity
in net income of affiliates				116,832		46,133		118,077	153		(1)			162,965		236,164	(31)
Income taxes				(43,896)		(16,770)		(45,249)	162		(3)			(60,666)		(89,891)	(33)
Equity in net income of affiliates, net of tax				2,957		3,146		5,219	(6)		(43)			6,103		8,504	(28)
Net income				75,893		32,509		78,047	133		(3)			108,402		154,777	(30)
Net income attributable to non-controlling
and other beneficial interests				(5,509)		(3,506)		(3,146)	57		75			(9,015)		(8,518)	6
Net income attributable to
Eaton Vance Corp. Shareholders			$	70,384	$	29,003	$	74,901	143		(6)		$	99,387	$	146,259	(32)

Earnings per share:
	Basic		$	0.61	$	0.25	$	0.62	144		(2)		$	0.85	$	1.21	(30)
	Diluted		$	0.58	$	0.24	$	0.59	142		(2)		$	0.82	$	1.15	(29)

Weighted average shares outstanding:
	Basic			114,415		114,592		118,103	-		(3)			114,326		118,060	(3)
	Diluted			119,730		119,690		123,021	-		(3)			119,548		123,564	(3)

Dividends declared per share			$	0.25	$	0.25	$	0.22	-		14		$	0.50	$	0.44	14


												Attachment 2
Eaton Vance Corp.
Reconciliation of net income attributable to Eaton Vance Corp.
shareholders to adjusted net income attributable to Eaton Vance Corp.
shareholders and earnings per diluted share to adjusted earnings per diluted share


		Three Months Ended										Six Months Ended
								% Change		% Change
		April 30,		January 31,		April 30,		Q2 2015 vs.		Q2 2015 vs.		April 30,		April 30,		%
(in thousands, except per share figures)		2015		2015		2014		Q1 2015		Q2 2014		2015		2014		Change

Net income attributable to Eaton
	Vance Corp. shareholders	$	70,384	$	29,003	$	74,901	143	%	(6)	%	$	99,387	$	146,259	(32)	%

Non-controlling interest value adjustments			(3)		200		-	NM		NM			197		2,389	(92)

Payments to end certain closed-end fund
	service and additional compensation
	arrangements, net of tax		-		44,895		-	NM		-			44,895		-	NM

Adjusted net income attributable
	to Eaton Vance Corp. shareholders	$	70,381	$	74,098	$	74,901	(5)		(6)		$	144,479	$	148,648	(3)

Earnings per diluted share		$	0.58	$	0.24	$	0.59	142		(2)		$	0.82	$	1.15	(29)

Non-controlling interest value adjustments			-		-		-	-		-			-		0.02	NM

Payments to end certain closed-end fund
	service and additional compensation
	arrangements, net of tax		-		0.37		-	NM		-			0.37		-	NM

Adjusted earnings per diluted share		$	0.58	$	0.61	$	0.59	(5)		(2)		$	1.19	$	1.17	2

														Attachment 3
Eaton Vance Corp.
Components of net income attributable
to non-controlling and other beneficial interests


		Three Months Ended										Six Months Ended
								% Change		% Change
		April 30,		January 31,		April 30,		Q2 2015 vs.		Q2 2015 vs.		April 30,		April 30,		%
(in thousands)		2015		2015		2014		Q1 2015		Q2 2014		2015		2014		Change

Consolidated funds		$	315	$	(514)	$	413	NM	%	(24)	%	$	(199)	$	217	NM	%

Majority-owned subsidiaries			3,903		3,773		3,524	3		11			7,676		7,007	10

Non-controlling interest value adjustments			(3)		200		-	NM		NM			197		2,389	(92)

Consolidated CLO entities			1,294		47		(791)	NM		NM			1,341		(1,095)	NM

Net income attributable to non-controlling
	and other beneficial interests	$	5,509	$	3,506	$	3,146	57		75		$	9,015	$	8,518	6

				Attachment 4
Eaton Vance Corp.
Balance Sheet
(in thousands, except per share figures)


		April 30,		October 31,
		2015		2014
Assets


Cash and cash equivalents	$	262,898	$	385,215
Investment advisory fees and other receivables		182,496		186,344
Investments		699,781		624,605
Assets of consolidated CLO entity:
Cash and cash equivalents		5,259		8,963
Bank loans and other investments		124,445		147,116
Other assets		414		371
Deferred sales commissions		21,449		17,841
Deferred income taxes		38,954		46,099
Equipment and leasehold improvements, net		45,693		45,651
Intangible assets, net		60,511		65,126
Goodwill		237,961		228,876
Other assets		92,691		103,879
Total assets	$	1,772,552	$	1,860,086

Liabilities, Temporary Equity and Permanent Equity

Liabilities:

Accrued compensation	$	91,137	$	181,064
Accounts payable and accrued expenses		66,306		64,598
Dividend payable		30,774		30,057
Debt		573,733		573,655
Liabilities of consolidated CLO entity:
Senior and subordinated note obligations		125,913		151,982
Other liabilities		273		298
Other liabilities		113,141		93,485
Total liabilities		1,001,277		1,095,139
Commitments and contingencies

Temporary Equity:
Redeemable non-controlling interests		135,090		107,466
Total temporary equity		135,090		107,466

Permanent Equity:
Voting Common Stock, par value $0.00390625 per share:
Authorized, 1,280,000 shares
Issued and outstanding, 429,005 and 415,078 shares, respectively		2		2
Non-Voting Common Stock, par value $0.00390625 per share:
Authorized, 190,720,000 shares
Issued and outstanding, 117,508,478 and 117,846,273 shares, respectively		459		460
Additional paid-in capital		-		-
Notes receivable from stock option exercises		(9,179)		(8,818)
Accumulated other comprehensive loss		(32,372)		(17,996)
Appropriated retained earnings		3,808		2,467
Retained earnings		671,909		679,061
Total Eaton Vance Corp. shareholders' equity		634,627		655,176
Non-redeemable non-controlling interests		1,558		2,305
Total permanent equity		636,185		657,481
Total liabilities, temporary equity and permanent equity	$	1,772,552	$	1,860,086

									Attachment 5
Eaton Vance Corp.
Consolidated Net Flows by Investment Mandate⁽¹⁾
(in millions)

		Three Months Ended						Six Months Ended
		April 30,		January 31,		April 30,		April 30,		April 30,
		2015		2015		2014		2015		2014
Equity assets - beginning of period⁽²⁾		$	92,966	$	96,379	$	90,765	$	96,379	$	93,585
	Sales and other inflows		3,965		4,514		3,669		8,479		7,454
	Redemptions/outflows		(4,432)		(5,072)		(5,015)		(9,504)		(10,636)
	Net flows		(467)		(558)		(1,346)		(1,025)		(3,182)
	Exchanges		24		35		20		59		532
	Market value change		4,644		(2,890)		4,294		1,754		2,798
Equity assets - end of period		$	97,167	$	92,966	$	93,733	$	97,167	$	93,733
Fixed income assets - beginning of period⁽³⁾			47,417		46,062		43,550		46,062		44,414
	Sales and other inflows		5,116		3,512		2,626		8,628		5,077
	Redemptions/outflows		(2,511)		(2,435)		(2,756)		(4,946)		(6,037)
	Net flows		2,605		1,077		(130)		3,682		(960)
	Exchanges		5		74		62		79		(37)
	Market value change		(337)		204		612		(133)		677
Fixed income assets - end of period		$	49,690	$	47,417	$	44,094	$	49,690	$	44,094
Floating-rate income assets - beginning of period			38,648		42,009		44,073		42,009		41,821
	Sales and other inflows		2,387		2,302		4,170		4,689		8,956
	Redemptions/outflows		(3,433)		(4,955)		(2,842)		(8,388)		(5,547)
	Net flows		(1,046)		(2,653)		1,328		(3,699)		3,409
	Exchanges		(21)		(105)		(49)		(126)		5
	Market value change		688		(603)		(237)		85		(120)
Floating-rate income assets - end of period		$	38,269	$	38,648	$	45,115	$	38,269	$	45,115
Alternative assets - beginning of period			10,805		11,241		13,171		11,241		15,212
	Sales and other inflows		782		847		767		1,629		1,856
	Redemptions/outflows		(1,069)		(1,138)		(1,967)		(2,207)		(4,956)
	Net flows		(287)		(291)		(1,200)		(578)		(3,100)
	Exchanges		(4)		(14)		(20)		(18)		(68)
	Market value change		68		(131)		161		(63)		68
Alternative assets - end of period		$	10,582	$	10,805	$	12,112	$	10,582	$	12,112
Portfolio implementation assets - beginning of period			48,538		48,008		43,296		48,008		42,992
	Sales and other inflows		3,435		2,663		2,086		6,098		4,000
	Redemptions/outflows		(1,799)		(1,565)		(1,812)		(3,364)		(3,458)
	Net flows		1,636		1,098		274		2,734		542
	Exchanges		-		-		(5)		-		(458)
	Market value change		2,705		(568)		2,188		2,137		2,677
Portfolio implementation assets - end of period		$	52,879	$	48,538	$	45,753	$	52,879	$	45,753
Exposure management assets - beginning of period⁽⁴⁾			57,294		54,036		43,714		54,036		42,645
	Sales and other inflows		14,523		17,033		9,463		31,556		24,970
	Redemptions/outflows		(10,196)		(14,286)		(9,293)		(24,482)		(23,657)
	Net flows		4,327		2,747		170		7,074		1,313
	Market value change		838		511		1,178		1,349		1,104
Exposure management assets - end of period		$	62,459	$	57,294	$	45,062	$	62,459	$	45,062
Total fund and separate account
	assets - beginning of period		295,668		297,735		278,569		297,735		280,669
	Sales and other inflows		30,208		30,871		22,781		61,079		52,313
	Redemptions/outflows		(23,440)		(29,451)		(23,685)		(52,891)		(54,291)
	Net flows		6,768		1,420		(904)		8,188		(1,978)
	Exchanges		4		(10)		8		(6)		(26)
	Market value change		8,606		(3,477)		8,196		5,129		7,204
Total assets under management - end of period		$	311,046	$	295,668	$	285,869	$	311,046	$	285,869

⁽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⁾ Includes assets in cash management accounts.
⁽⁴⁾ Category includes amounts reclassified from portfolio implementation and equity categories for all periods presented.

									Attachment 6
Eaton Vance Corp.
Consolidated Net Flows by Investment Vehicle⁽¹⁾
(in millions)

		Three Months Ended						Six Months Ended
		April 30,		January 31,		April 30,		April 30,		April 30,
		2015		2015		2014		2015		2014
Fund assets - beginning of period⁽²⁾		$	129,552	$	134,564	$	132,195	$	134,564	$	133,401
	Sales and other inflows		7,755		8,614		8,684		16,369		18,918
	Redemptions/outflows		(8,390)		(10,739)		(8,751)		(19,129)		(19,013)
	Net flows		(635)		(2,125)		(67)		(2,760)		(95)
	Exchanges		4		181		81		185		47
	Market value change		3,240		(3,068)		2,910		172		1,766
Fund assets - end of period		$	132,161	$	129,552	$	135,119	$	132,161	$	135,119
Institutional separate account assets -
	beginning of period⁽³⁾		107,547		106,443		94,869		106,443		95,724
	Sales and other inflows		17,860		18,055		11,101		35,915		27,903
	Redemptions/outflows		(12,501)		(16,398)		(12,249)		(28,899)		(29,721)
	Net flows		5,359		1,657		(1,148)		7,016		(1,818)
	Exchanges		-		(173)		(96)		(173)		(96)
	Market value change		3,036		(380)		2,939		2,656		2,754
Institutional separate account assets -
	end of period	$	115,942	$	107,547	$	96,564	$	115,942	$	96,564
High-net-worth separate account assets -
	beginning of period		22,594		22,235		19,374		22,235		19,699
	Sales and other inflows		1,166		1,460		968		2,626		1,682
	Redemptions/outflows		(792)		(621)		(988)		(1,413)		(2,092)
	Net flows		374		839		(20)		1,213		(410)
	Exchanges		(1)		(94)		402		(95)		402
	Market value change		1,259		(386)		1,212		873		1,277
High-net-worth separate account assets -
	end of period	$	24,226	$	22,594	$	20,968	$	24,226	$	20,968
Retail managed account assets - beginning of period			35,975		34,493		32,131		34,493		31,845
	Sales and other inflows		3,427		2,742		2,028		6,169		3,810
	Redemptions/outflows		(1,757)		(1,693)		(1,697)		(3,450)		(3,465)
	Net flows		1,670		1,049		331		2,719		345
	Exchanges		1		76		(379)		77		(379)
	Market value change		1,071		357		1,135		1,428		1,407
Retail managed account assets - end of period		$	38,717	$	35,975	$	33,218	$	38,717	$	33,218
Fund and separate account assets - beginning of period			295,668		297,735		278,569		297,735		280,669
	Sales and other inflows		30,208		30,871		22,781		61,079		52,313
	Redemptions/outflows		(23,440)		(29,451)		(23,685)		(52,891)		(54,291)
	Net flows		6,768		1,420		(904)		8,188		(1,978)
	Exchanges		4		(10)		8		(6)		(26)
	Market value change		8,606		(3,477)		8,196		5,129		7,204
Total assets under management - end of period		$	311,046	$	295,668	$	285,869	$	311,046	$	285,869

⁽¹⁾ Consolidated Eaton Vance Corp. See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest Inc.
⁽²⁾ Includes assets in cash management funds.
⁽³⁾ Includes assets in cash management separate accounts.

							Attachment 7
Eaton Vance Corp.
Consolidated Assets under Management by Investment Affiliate⁽¹⁾
(in millions)

		April 30,		January 31,	%		April 30,	%
		2015		2015	Change		2014	Change
Eaton Vance Management⁽²⁾	$	142,930	$	139,714	2%	$	144,930	-1%
Parametric		149,656		138,015	8%		122,524	22%
Atlanta Capital		18,460		17,939	3%		18,415	0%
Total	$	311,046	$	295,668	5%	$	285,869	9%

⁽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, as well as certain Eaton Vance-sponsored funds and accounts managed by Hexavest and unaffiliated third-party advisers under Eaton Vance supervision.


							Attachment 8
Eaton Vance Corp.
Consolidated Assets under Management by Investment Mandate⁽¹⁾
(in millions)

		April 30,		January 31,	%		April 30,	%
		2015		2015	Change		2014	Change
Equity⁽²⁾	$	97,167	$	92,966	5%	$	93,733	4%
Fixed income⁽³⁾		49,690		47,417	5%		44,094	13%
Floating-rate income		38,269		38,648	-1%		45,115	-15%
Alternative		10,582		10,805	-2%		12,112	-13%
Portfolio implementation		52,879		48,538	9%		45,753	16%
Exposure management		62,459		57,294	9%		45,062	39%
Total	$	311,046	$	295,668	5%	$	285,869	9%

⁽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.
⁽³⁾ Includes assets in cash management accounts.

Attachment 9
Eaton Vance Corp.
Hexavest Inc. Assets under Management and Net Flows
(in millions)

		Three Months Ended						Six Months Ended
		April 30,		January 31,		April 30,		April 30,		April 30,
		2015		2015		2014		2015		2014
Eaton Vance distributed:
Eaton Vance sponsored funds - beginning of period⁽¹⁾		$	234	$	227	$	212	$	227	$	211
	Sales and other inflows		3		16		12		19		42
	Redemptions/outflows		(4)		(6)		(17)		(10)		(42)
	Net flows		(1)		10		(5)		9		-
	Market value change		14		(3)		14		11		10
Eaton Vance sponsored funds - end of period		$	247	$	234	$	221	$	247	$	221
Eaton Vance distributed separate accounts -
	beginning of period⁽²⁾	$	1,999	$	2,367	$	1,383	$	2,367	$	1,574
	Sales and other inflows		284		100		307		384		383
	Redemptions/outflows		(3)		(432)		(74)		(435)		(79)
	Net flows		281		(332)		233		(51)		304
	Exchanges		-		-		624		-		389
	Market value change		121		(36)		114		85		87
Eaton Vance distributed separate accounts -
	end of period	$	2,401	$	1,999	$	2,354	$	2,401	$	2,354
Total Eaton Vance distributed - beginning of period		$	2,233	$	2,594	$	1,595	$	2,594	$	1,785
	Sales and other inflows		287		116		319		403		425
	Redemptions/outflows		(7)		(438)		(91)		(445)		(121)
	Net flows		280		(322)		228		(42)		304
	Exchanges		-		-		624		-		389
	Market value change		135		(39)		128		96		97
Total Eaton Vance distributed - end of period		$	2,648	$	2,233	$	2,575	$	2,648	$	2,575
Hexavest directly distributed - beginning of period⁽³⁾		$	12,749	$	14,101	$	14,543	$	14,101	$	15,136
	Sales and other inflows		180		245		355		425		795
	Redemptions/outflows		(683)		(1,341)		(681)		(2,024)		(1,641)
	Net flows		(503)		(1,096)		(326)		(1,599)		(846)
	Exchanges		-		-		(624)		-		(389)
	Market value change		753		(256)		884		497		576
Hexavest directly distributed - end of period		$	12,999	$	12,749	$	14,477	$	12,999	$	14,477
Total Hexavest assets - beginning of period		$	14,982	$	16,695	$	16,138	$	16,695	$	16,921
	Sales and other inflows		467		361		674		828		1,220
	Redemptions/outflows		(690)		(1,779)		(772)		(2,469)		(1,762)
	Net flows		(223)		(1,418)		(98)		(1,641)		(542)
	Exchanges		-		-		-		-		-
	Market value change		888		(295)		1,012		593		673
Total Hexavest assets - end of period		$	15,647	$	14,982	$	17,052	$	15,647	$	17,052

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

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/eaton-vance-corp-report-for-the-three-and-six-month-periods-ended-april-30-2015-300086419.html

SOURCE Eaton Vance Corp.

Market News and Data brought to you by Benzinga APIs