Eaton Vance Corp. Report for the Three and Nine Month Periods Ended July 31, 2015

BOSTON, Aug. 19, 2015 /PRNewswire/ -- Eaton Vance Corp. EV today reported adjusted earnings per diluted share(1) of $0.57 for the third quarter of fiscal 2015, a decrease of 10 percent from $0.63 of adjusted earnings per diluted share in the third quarter of fiscal 2014 and a decrease of 2 percent from $0.58 of adjusted earnings per diluted share in the second quarter of fiscal 2015.

As determined under U.S. generally accepted accounting principles ("GAAP"), the Company earned $0.57 per diluted share in the third quarter of fiscal 2015, $0.63 per diluted share in the third quarter of fiscal 2014 and $0.58 per diluted share in the second quarter of fiscal 2015.

Compensation and related costs in connection with closing our Fox Asset Management LLC affiliate and other compensation costs attributable to retirements, terminations and additions to staff reduced earnings by $0.04 per diluted share in the third quarter of fiscal 2015.  For comparison, costs attributable to retirements, terminations and additions to staff reduced earnings per diluted share by $0.02 per diluted share in the third quarter of fiscal 2014 and $0.01 per diluted share in the second quarter of fiscal 2015.

Adjusted earnings per diluted share were $1.76 in the nine months ended July 31, 2015 compared to $1.80 in the nine months ended July 31, 2014, a decrease of 2 percent. The Company's GAAP earnings per diluted share were $1.39 and $1.78, respectively, for these periods. Adjusted earnings differed from GAAP earnings in the nine months ended July 31, 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 differed from GAAP earnings per diluted share in the nine months ended July 31, 2014 due to an increase in the estimated redemption value of non-controlling interests in affiliates redeemable at other than fair value, which reduced GAAP earnings by $0.02 per diluted share. 

Consolidated net inflows of $3.9 billion in the third quarter of fiscal 2015 represent a 5 percent annualized internal growth rate (net inflows divided by beginning of period assets managed). For comparison, the Company had net outflows of $2.0 billion in the third quarter of fiscal 2014 and net inflows of $6.8 billion in the second quarter of fiscal 2015.

"The Company's earnings in the third fiscal quarter were held back by sluggish revenues, spending to support key corporate initiatives and costs in connection with personnel changes," said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "An improving trend of core asset flows, favorable investment performance and continued progress advancing our NextShares™ actively managed exchange-traded product initiative position us for resumed earnings growth as these translate into increased revenues."

Consolidated assets under management were $312.6 billion on July 31, 2015, an increase of 8 percent from the $288.2 billion of managed assets on July 31, 2014 and an increase of approximately 1 percent from the $311.0 billion of managed assets on April 30, 2015. The year-over-year increase in assets under management reflects net inflows of $18.9 billion and market appreciation of $5.5 billion. The sequential quarterly increase in assets under management reflects net inflows of $3.9 billion offset by market price declines of $2.4 billion.

Average consolidated assets under management were $309.8 billion in the third quarter of fiscal 2015, up 7 percent from $289.3 billion in the third quarter of fiscal 2014 and up 2 percent from $303.4 billion in the second 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 $32.8 billion in the third quarter of fiscal 2015, up 26 percent from $26.2 billion in the third quarter of fiscal 2014 and up 9 percent from $30.2 billion in the second quarter of fiscal 2015. Gross redemptions and other outflows were $28.9 billion in the third quarter of fiscal 2015, an increase of 3 percent from $28.2 billion in the third quarter of fiscal 2014 and up 23 percent from $23.4 billion in the second quarter of fiscal 2015.

As of July 31, 2015, 49 percent-owned affiliate Hexavest, Inc. ("Hexavest") managed $14.8 billion of client assets, a decrease of 13 percent from the $17.0 billion of managed assets on July 31, 2014 and a decrease of 5 percent from the $15.6 billion of managed assets on April 30, 2015. Hexavest-managed funds and separate accounts had net outflows of $0.5 billion in the third quarter of fiscal 2015, $0.3 billion in the third quarter of fiscal 2014 and $0.2 billion in the second 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)











July 31,

April 30,

July 31,



2015

2015

2014









Revenue 

$

355,511

$

351,664

$

367,590

Expenses 


238,778


229,443


236,412

Operating income 


116,733


122,221


131,178









    Operating margin 


32.8%


34.8%


35.7%









Non-operating expense 


(7,584)


(5,389)


(4,850)

Income taxes 


(43,435)


(43,896)


(48,899)

Equity in net income of affiliates, net of tax 


3,260


2,957


3,840

Net income 


68,974


75,893


81,269

Net income attributable to non-controlling 








 and other beneficial interests 


(265)


(5,509)


(3,334)

Net income attributable to  








Eaton Vance Corp. shareholders 

$

68,709

$

70,384

$

77,935

Adjusted net income attributable to Eaton  








Vance Corp. shareholders(1)

$

68,715

$

70,381

$

77,876









Earnings per diluted share 

$

0.57

$

0.58

$

0.63









Adjusted earnings per diluted share(1)

$

0.57

$

0.58

$

0.63

 

Third Quarter Fiscal 2015 vs. Third Quarter Fiscal 2014

In the third quarter of fiscal 2015, revenue decreased 3 percent to $355.5 million from revenue of $367.6 million in the third quarter of fiscal 2014. Investment advisory and administrative fees were down 3 percent, as the impact of a lower average effective fee rate, driven by product mix, more than offset a 7 percent increase in average consolidated assets under management. Performance fees contributed $1.7 million in the third quarter of fiscal 2015 compared to $0.9 million in the third quarter of fiscal 2014. Distribution and service fee revenues collectively were down 7 percent, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.

Operating expenses increased 1 percent to $238.8 million in the third quarter of fiscal 2015 from $236.4 million in the third quarter of fiscal 2014. Increases in compensation and other operating expenses were mostly offset by lower distribution and service fee expenses and reduced amortization of deferred sales commissions. The increase in compensation expense reflects higher salaries and benefits attributable to an increase in headcount, as well as higher stock-based compensation accruals and other compensation costs in connection with employee retirements, other terminations and additions to staff.  Other expenses increased 7 percent, reflecting higher professional services, travel, facilities-related and other expenses, offset in part by lower information technology 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. 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 $2.0 million in the third quarter of fiscal 2015, an increase of 107 percent from $1.0 million in the third quarter of fiscal 2014.

During the third quarter of fiscal 2015, the Company and its wholly owned subsidiary Navigate Fund Solutions LLC ("Navigate") made further progress advancing NextShares toward market introduction. In July, the U.S. Securities and Exchange Commission ("SEC") approved the listing and trading of the 18 initial Eaton Vance NextShares funds on the NASDAQ Stock Market LLC ("Nasdaq").  To date, 11 fund advisers, including Eaton Vance, have indicated their intent to offer NextShares funds by entering into preliminary agreements with Navigate and filing request for exemptive relief with the SEC.  These 11 firms collectively manage approximately $500 billion in mutual fund assets and sponsor approximately 200 funds currently rated four or five stars by Morningstar.  Following the end of the third quarter, Envestnet, Inc. announced an initiative to make NextShares available on its advisor platform.  Envestnet is a leading provider of unified wealth management technology and services to financial advisors, supporting over 41,000 advisors. 

Operating income was down 11 percent to $116.7 million in the third quarter of fiscal 2015 from $131.2 million in the third quarter of fiscal 2014. Operating margin declined to 32.8 percent in the third quarter of fiscal 2015 from 35.7 percent in the third quarter of fiscal 2014.

Non-operating expense totaled $7.6 million in the third quarter of fiscal 2015 compared to $4.9 million in the third quarter of fiscal 2014. The year-over-year change primarily reflects a $3.8 million decline in gains (losses) and other investment income related to the Company's investments in sponsored products and a $0.9 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 39.8 percent in the third quarter of fiscal 2015. Excluding the impact of consolidated CLO entity income (expense) borne by other beneficial interest holders, the Company's effective tax rate was 38.9 percent for the quarter.

Equity in net income of affiliates decreased to $3.3 million in the third quarter of fiscal 2015 from $3.8 million in the third quarter of fiscal 2014. Equity in net income of affiliates in the third quarter of fiscal 2015 included $2.9 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 third quarter of fiscal 2014 included $2.9 million of Company equity in the net income of Hexavest and $0.9 million of gains (losses) and other income on the Company's investments in sponsored funds.

As detailed in Attachment 3, net income attributable to non-controlling and other beneficial interests was $0.3 million in the third quarter of fiscal 2015 compared to $3.3 million in the third quarter of fiscal 2014.

Third Quarter Fiscal 2015 vs. Second Quarter Fiscal 2015

In the third quarter of fiscal 2015, revenue increased 1 percent to $355.5 million from $351.7 million in the second quarter of fiscal 2015. Investment advisory and administrative fees were up 1 percent, reflecting a 2 percent increase in average consolidated assets under management and an increase in the number of fee days in the quarter, offset by a slight decline in effective fee rates. Performance fees contributed $1.7 million in the third quarter of fiscal 2015 and were negligible in the second quarter of fiscal 2015. Distribution and service fee revenues collectively increased 2 percent, reflecting an increase in managed assets in fund share classes that are subject to distribution and service fees.

Operating expenses increased 4 percent to $238.8 million in the third quarter of fiscal 2015 from $229.4 million in the second quarter of fiscal 2015. The 4 percent increase reflects higher compensation, distribution and service fee expenses, fund-related expenses, other operating expenses and increased amortization of deferred sales commissions. The increase in compensation expense reflects an increase in base salaries, driven by an increase in payroll days in the current quarter, higher stock-based compensation accruals and other compensation costs in connection with employee retirements, other terminations and additions to staff, offset by a decrease in sales-based incentives. The increase in distribution expense reflects increased marketing expenses and distribution fee expenses. Service fee expense reflects increased average assets under management subject to those fees. 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. The increase in amortization of deferred sales commissions largely reflects higher private fund commission amortization, offset by a decrease in Class B share amortization. Other expenses increased 6 percent, reflecting higher professional services, travel expenses and other corporate expenses, offset by lower information technology expenses.

NextShares-related expenses grew from $1.8 million in the second quarter of fiscal 2015 to $2.0 million in the third quarter of fiscal 2015, an increase of 12 percent.

Operating income was down 4 percent to $116.7 million in the third quarter of fiscal 2015 from $122.2 million in the second quarter of fiscal 2015. Operating margin decreased to 32.8 percent in the third quarter of fiscal 2015 from 34.8 percent in the second quarter of fiscal 2015.

Non-operating expense totaled $7.6 million in the third quarter of fiscal 2015 compared to $5.4 million in the second quarter of fiscal 2015, reflecting a $1.2 million decline in gains (losses) and other investment income related to the Company's investments in sponsored products and a $1.0 million decline in income (expense) of the Company's consolidated CLO entity.

Equity in net income of affiliates increased to $3.3 million in the third quarter of fiscal 2015 from $3.0 million in the second quarter of fiscal 2015. In the third quarter of fiscal 2015, equity in net income of affiliates included $2.9 million of Company equity in the net income of Hexavest and $0.4 million of net income in a private equity partnership. 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.

As detailed in Attachment 3, net income attributable to non-controlling and other beneficial interests was $0.3 million in the third quarter of fiscal 2015 and $5.5 million in the second quarter of fiscal 2015.

Balance Sheet Information

Cash and cash equivalents totaled $318.8 million on July 31, 2015, with no outstanding borrowings against the Company's $300 million credit facility. Included within investments is $115.4 million of holdings of short-term debt securities with maturities between 90 days and one year. During the first nine months of fiscal 2015, the Company used $192.2 million to repurchase and retire approximately 4.7 million shares of its Non-Voting Common Stock under its repurchase authorizations. Of the current 8.0 million share repurchase authorization, approximately 5.9 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 nine months ended July 31, 2015. To participate in the conference call, please call 877-201-0168 (domestic) or 647-788-4901 (international) and refer to "Eaton Vance Corp. Third Quarter Earnings – Conference ID 1717296." 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 1717296.

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


Nine Months Ended










%

%

















Change

Change

















Q3 2015

Q3 2015











July 31,

April 30,

July 31,

vs.

vs.


July 31,

July 31,

%




2015

2015

2014

Q2 2015

Q3 2014


2015

2014

Change

Revenue:






































Investment advisory and administrative fees

$

303,625

$

300,624

$

311,756

1

%

(3)

%


$

906,062

$

916,605

(1)

%


Distribution and underwriter fees


20,285


20,048


21,548

1


(6)




61,369


64,381

(5)



Service fees


29,265


28,461


31,977

3


(8)




87,573


95,097

(8)



Other revenue


2,336


2,531


2,309

(8)


1




7,101


5,829

22




Total revenue


355,511


351,664


367,590

1


(3)




1,062,105


1,081,912

(2)


Expenses:






































Compensation and related costs


124,400


120,075


117,632

4


6




364,667


351,110

4



Distribution expense


31,300


30,082


35,591

4


(12)




167,649


105,924

58



Service fee expense


26,978


26,358


29,780

2


(9)




81,116


87,266

(7)



Amortization of deferred sales commissions

3,767


3,692


4,084

2


(8)




11,187


13,408

(17)



Fund-related expenses


9,446


8,932


9,380

6


1




27,084


26,288

3



Other expenses


42,887


40,304


39,945

6


7




120,888


117,235

3




Total expenses


238,778


229,443


236,412

4


1




772,591


701,231

10


Operating income


116,733


122,221


131,178

(4)


(11)




289,514


380,681

(24)


Non-operating income (expense):



















Gains (losses) and other investment



















income, net


(850)


347


2,917

NM


NM




2,299


2,592

(11)



Interest expense


(7,344)


(7,337)


(7,443)

-


(1)




(22,017)


(22,247)

(1)



Other income (expense) of consolidated



















collateralized loan obligation




















("CLO") entities:



















     Gains and other investment



















          income, net

1,771


2,212


1,434

(20)


24




5,284


15,247

(65)




     Interest and other expense


(1,161)


(611)


(1,758)

90


(34)




(2,966)


(13,781)

(78)




Total non-operating expense


(7,584)


(5,389)


(4,850)

41


56




(17,400)


(18,189)

(4)






















Income before income taxes and equity


















   in net income of affiliates

109,149


116,832


126,328

(7)


(14)




272,114


362,492

(25)


Income taxes


(43,435)


(43,896)


(48,899)

(1)


(11)




(104,101)


(138,790)

(25)


Equity in net income of affiliates, net of tax


3,260


2,957


3,840

10


(15)




9,363


12,344

(24)


Net income


68,974


75,893


81,269

(9)


(15)




177,376


236,046

(25)


Net income attributable to non-controlling

















   and other beneficial interests


(265)


(5,509)


(3,334)

(95)


(92)




(9,280)


(11,852)

(22)


Net income attributable to


















   Eaton Vance Corp. Shareholders

$

68,709

$

70,384

$

77,935

(2)


(12)



$

168,096

$

224,194

(25)






















Earnings per share:


















Basic

$

0.60

$

0.61

$

0.66

(2)


(9)



$

1.45

$

1.86

(22)



Diluted

$

0.57

$

0.58

$

0.63

(2)


(10)



$

1.39

$

1.78

(22)






















Weighted average shares outstanding:

















Basic


113,406


114,415


116,145

(1)


(2)




113,890


117,248

(3)



Diluted


118,281


119,730


121,013

(1)


(2)




119,013


122,550

(3)






















Dividends declared per share

$

0.25

$

0.25

$

0.22

-


14



$

0.75

$

0.66

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


Nine Months Ended









% Change

% Change









July 31,

April 30,

July 31,

Q3 2015 vs.

Q3 2015 vs.


July 31,

July 31,

%

(in thousands, except per share figures)

2015

2015

2014

Q2 2015

Q3 2014


2015

2014

Change




















Net income attributable to Eaton



















Vance Corp. shareholders

$

68,709

$

70,384

$

77,935

(2)

%

(12)

%


$

168,096

$

224,194

(25)

%



















Non-controlling interest value adjustments


6


(3)


(59)

NM


NM




203


2,330

(91)




















Payments to end certain closed-end fund



















service and additional compensation



















arrangements, net of tax


-


-


-

-


-




44,895


-

NM




















Adjusted net income attributable



















to Eaton Vance Corp. shareholders

$

68,715

$

70,381

$

77,876

(2)


(12)



$

213,194

$

226,524

(6)




















Earnings per diluted share

$

0.57

$

0.58

$

0.63

(2)


(10)



$

1.39

$

1.78

(22)




















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





















Adjusted earnings per diluted share

$

0.57

$

0.58

$

0.63

(2)


(10)



$

1.76

$

1.80

(2)










































































Attachment 3

Eaton Vance Corp.


Components of net income attributable


to non-controlling and other beneficial interests










































Three Months Ended


Nine Months Ended









% Change

% Change










July 31,

April 30,

July 31,

Q3 2015 vs.

Q3 2015 vs.


July 31,

July 31,

%

(in thousands)

2015

2015

2014

Q2 2015

Q3 2014


2015

2014

Change




















Consolidated funds

$

(1,027)

$

315

$

42

NM

%

NM

%


$

(1,226)

$

259

NM

%



















Majority-owned subsidiaries


4,066


3,903


4,261

4


(5)




11,742


11,268

4





















Non-controlling interest value adjustments


6


(3)


(59)

NM


NM




203


2,330

(91)




















Consolidated CLO entities


(2,780)


1,294


(910)

NM


205




(1,439)


(2,005)

(28)





















Net income attributable to non-controlling



















and other beneficial interests

$

265

$

5,509

$

3,334

(95)


(92)



$

9,280

$

11,852

(22)
































 Attachment 4


Eaton Vance Corp.


Balance Sheet


(in thousands, except per share figures)








July 31,




October 31,




2015




2014


Assets
























Cash and cash equivalents

$

318,800



$

385,215


Investment advisory fees and other receivables


180,827




186,344


Investments


637,368




624,605


Assets of consolidated CLO entity:








          Cash and cash equivalents


73




8,963


          Bank loans and other investments


1,559




147,116


          Other assets


3,549




371


Deferred sales commissions


22,845




17,841


Deferred income taxes


43,585




46,099


Equipment and leasehold improvements, net


45,428




45,651


Intangible assets, net


57,670




65,126


Goodwill


237,961




228,876


Other assets


76,230




103,879


   Total assets

$

1,625,895



$

1,860,086










Liabilities, Temporary Equity and Permanent Equity
















Liabilities:
















Accrued compensation

$

135,615



$

181,064


Accounts payable and accrued expenses


64,943




64,598


Dividend payable


30,931




30,057


Debt


573,772




573,655


Liabilities of consolidated CLO entity:








          Senior and subordinated note obligations


4,097




151,982


          Other liabilities


56




298


Other liabilities


84,667




93,485


   Total liabilities


894,081




1,095,139


Commitments and contingencies
















Temporary Equity:








Redeemable non-controlling interests


111,694




107,466


   Total temporary equity


111,694




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, 116,214,971 and 117,846,273 shares, respectively


454




460


Additional paid-in capital


-




-


Notes receivable from stock option exercises


(8,360)




(8,818)


Accumulated other comprehensive loss


(47,192)




(17,996)


Appropriated retained earnings


1,028




2,467


Retained earnings


672,538




679,061


   Total Eaton Vance Corp. shareholders' equity


618,470




655,176


Non-redeemable non-controlling interests


1,650




2,305


   Total permanent equity


620,120




657,481


Total liabilities, temporary equity and permanent equity

$

1,625,895



$

1,860,086
















































Attachment 5 

 Eaton Vance Corp. 

 Consolidated Net Flows by Investment Mandate(1)

 (in millions) 


















Three Months Ended


Nine Months Ended 



July 31,


April 30,


July 31,


July 31,

July 31, 



2015


2015


2014


2015

2014

 Equity assets - beginning of period(2)

$

97,167


$

92,966


$

93,733


$

96,379

$

93,585


Sales and other inflows 


5,191



3,965



3,451



13,670


10,905


Redemptions/outflows 


(8,371)



(4,432)



(4,052)



(17,876)


(14,688)


  Net flows 


(3,180)



(467)



(601)



(4,206)


(3,783)


Exchanges 


(19)



24



16



40


548


Market value change 


(602)



4,644



2,520



1,153


5,318

 Equity assets - end of period 

$

93,366


$

97,167


$

95,668


$

93,366

$

95,668

 Fixed income assets - beginning of period(3)


49,690



47,417



44,094



46,062


44,414


Sales and other inflows 


5,370



5,116



3,344



13,997


8,421


Redemptions/outflows 


(3,212)



(2,511)



(3,299)



(8,158)


(9,336)


  Net flows 


2,158



2,605



45



5,839


(915)


Exchanges 


(27)



5



59



52


22


Market value change 


(555)



(337)



276



(687)


953

 Fixed income assets - end of period 

$

51,266


$

49,690


$

44,474


$

51,266

$

44,474

 Floating-rate income assets -  beginning of period 


38,269



38,648



45,115



42,009


41,821


Sales and other inflows 


2,032



2,387



4,139



6,720


13,095


Redemptions/outflows 


(2,554)



(3,433)



(5,491)



(10,941)


(11,038)


  Net flows 


(522)



(1,046)



(1,352)



(4,221)


2,057


Exchanges 


2



(21)



(62)



(124)


(57)


Market value change 


(529)



688



51



(444)


(69)

 Floating-rate income assets - end of period 

$

37,220


$

38,269


$

43,752


$

37,220

$

43,752

 Alternative assets -  beginning of period 


10,582



10,805



12,112



11,241


15,212


Sales and other inflows 


721



782



774



2,351


2,630


Redemptions/outflows 


(869)



(1,069)



(1,208)



(3,076)


(6,164)


  Net flows 


(148)



(287)



(434)



(725)


(3,534)


Exchanges 


45



(4)



(15)



27


(83)


Market value change 


(146)



68



28



(210)


96

 Alternative assets - end of period 

$

10,333


$

10,582


$

11,691


$

10,333

$

11,691

 Portfolio implementation assets - beginning of period 


52,879



48,538



45,753



48,008


42,992


Sales and other inflows 


8,395



3,435



2,320



14,493


6,320


Redemptions/outflows 


(1,988)



(1,799)



(2,061)



(5,352)


(5,519)


  Net flows 


6,407



1,636



259



9,141


801


Exchanges 


-



-



(4)



-


(462)


Market value change 


(52)



2,705



946



2,085


3,623

 Portfolio implementation assets - end of period 

$

59,234


$

52,879


$

46,954


$

59,234

$

46,954

 Exposure management assets - beginning of period(4)


62,459



57,294



45,062



54,036


42,645


Sales and other inflows 


11,113



14,523



12,123



42,668


37,093


Redemptions/outflows 


(11,909)



(10,196)



(12,069)



(36,391)


(35,726)


  Net flows 


(796)



4,327



54



6,277


1,367


Market value change 


(526)



838



539



824


1,643

 Exposure management assets - end of period 

$

61,137


$

62,459


$

45,655


$

61,137

$

45,655

 Total fund and separate account 















assets - beginning of period 


311,046



295,668



285,869



297,735


280,669


Sales and other inflows 


32,822



30,208



26,151



93,899


78,464


Redemptions/outflows 


(28,903)



(23,440)



(28,180)



(81,794)


(82,471)


  Net flows 


3,919



6,768



(2,029)



12,105


(4,007)


Exchanges 


1



4



(6)



(5)


(32)


Market value change 


(2,410)



8,606



4,360



2,721


11,564

 Total assets under management - end of period 

$

312,556


$

311,046


$

288,194


$

312,556

$

288,194
















(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


Nine Months Ended 



July 31,


April 30,


July 31,


July 31,


July 31, 



2015


2015


2014


2015


2014

 Fund assets - beginning of period(2)

$

132,161


$

129,552


$

135,119


$

134,564


$

133,401


Sales and other inflows 


7,016



7,755



8,634



23,385



27,552


Redemptions/outflows 


(7,570)



(8,390)



(10,272)



(26,698)



(29,285)


  Net flows 


(554)



(635)



(1,638)



(3,313)



(1,733)


Exchanges 


1



4



(6)



185



41


Market value change 


(1,397)



3,240



1,681



(1,225)



3,447

 Fund assets - end of period 

$

130,211


$

132,161


$

135,156


$

130,211


$

135,156

 Institutional separate account assets -  
















beginning of period(3)


115,942



107,547



96,564



106,443



95,724


Sales and other inflows 


21,764



17,860



14,717



57,678



42,620


Redemptions/outflows 


(18,424)



(12,501)



(14,912)



(47,323)



(44,633)


  Net flows 


3,340



5,359



(195)



10,355



(2,013)


Exchanges 


(34)



-



377



(207)



281


Market value change 


(1,162)



3,036



1,647



1,495



4,401

 Institutional separate account assets -  
















end of period 

$

118,086


$

115,942


$

98,393


$

118,086


$

98,393

 High-net-worth separate account assets -  
















beginning of period 


24,226



22,594



20,968



22,235



19,699


Sales and other inflows 


1,177



1,166



794



3,803



2,476


Redemptions/outflows 


(877)



(792)



(953)



(2,291)



(3,045)


  Net flows 


300



374



(159)



1,512



(569)


Exchanges 


-



(1)



(433)



(94)



(31)


Market value change 


(34)



1,259



475



839



1,752

 High-net-worth separate account assets -
















end of period 

$

24,492


$

24,226


$

20,851


$

24,492


$

20,851

 Retail managed account assets - beginning of period

38,717



35,975



33,218



34,493



31,845


Sales and other inflows 


2,865



3,427



2,006



9,033



5,816


Redemptions/outflows 


(2,032)



(1,757)



(2,043)



(5,482)



(5,508)


  Net flows 


833



1,670



(37)



3,551



308


Exchanges 


34



1



56



111



(323)


Market value change 


183



1,071



557



1,612



1,964

 Retail managed account assets - end of period

$

39,767


$

38,717


$

33,794


$

39,767


$

33,794

 Fund and separate account assets - beginning of period

311,046



295,668



285,869



297,735



280,669


Sales and other inflows 


32,822



30,208



26,151



93,899



78,464


Redemptions/outflows 


(28,903)



(23,440)



(28,180)



(81,794)



(82,471)


  Net flows 


3,919



6,768



(2,029)



12,105



(4,007)


Exchanges 


1



4



(6)



(5)



(32)


Market value change 


(2,410)



8,606



4,360



2,721



11,564

 Total assets under management - end of period 

$

312,556


$

311,046


$

288,194


$

312,556


$

288,194

















(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) 


















July 31,



April 30,


%



July 31,


%




2015



2015


Change



2014


Change 

 Eaton Vance Management(2)

$

142,987


$

142,930


0%


$

143,373


0%

 Parametric  


150,983



149,656


1%



126,741


19%

 Atlanta Capital 


18,586



18,460


1%



18,080


3%

 Total  

$

312,556


$

311,046


0%


$

288,194


8%















(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) 


















July 31,



April 30,


%



July 31,


%




2015



2015


Change



2014


Change 

 Equity(2)

$

93,366


$

97,167


-4%


$

95,668


-2%

 Fixed income(3)


51,266



49,690


3%



44,474


15%

 Floating-rate income 


37,220



38,269


-3%



43,752


-15%

 Alternative 


10,333



10,582


-2%



11,691


-12%

 Portfolio implementation 


59,234



52,879


12%



46,954


26%

 Exposure management 


61,137



62,459


-2%



45,655


34%

 Total  

$

312,556


$

311,046


0%


$

288,194


8%















(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


Nine Months Ended 




July 31,


April 30,


July 31,


July 31,


July 31, 




2015


2015


2014


2015


2014

 Eaton Vance distributed: 















 Eaton Vance sponsored funds - beginning of period(1)

$

247


$

234


$

221


$

227


$

211


Sales and other inflows 


2



3



6



21



49


Redemptions/outflows 


(6)



(4)



(10)



(15)



(53)


  Net flows 


(4)



(1)



(4)



6



(4)


Market value change 


(4)



14



4



6



14

 Eaton Vance sponsored funds - end of period 

$

239


$

247


$

221


$

239


$

221

 Eaton Vance distributed separate accounts - 
















 beginning of period(2)

$

2,401


$

1,999


$

2,354


$

2,367


$

1,574


Sales and other inflows 


11



284



136



395



519


Redemptions/outflows 


(39)



(3)



(122)



(475)



(201)


  Net flows 


(28)



281



14



(80)



318


Exchanges 


-



-



-



-



389


Market value change 


(11)



121



29



75



116

 Eaton Vance distributed separate accounts -  
















end of period 

$

2,362


$

2,401


$

2,397


$

2,362


$

2,397

 Total Eaton Vance distributed - beginning of period 

$

2,648


$

2,233


$

2,575


$

2,594


$

1,785


Sales and other inflows 


13



287



142



416



568


Redemptions/outflows 


(45)



(7)



(132)



(490)



(254)


  Net flows 


(32)



280



10



(74)



314


Exchanges 


-



-



-



-



389


Market value change 


(15)



135



33



81



130

 Total Eaton Vance distributed - end of period 

$

2,601


$

2,648


$

2,618


$

2,601


$

2,618

 Hexavest directly distributed - beginning of period(3)

$

12,999


$

12,749


$

14,477


$

14,101


$

15,136


Sales and other inflows 


286



180



597



711



1,392


Redemptions/outflows 


(780)



(683)



(904)



(2,804)



(2,546)


  Net flows 


(494)



(503)



(307)



(2,093)



(1,154)


Exchanges 


-



-



-



-



(389)


Market value change 


(297)



753



253



200



830

 Hexavest directly distributed - end of period 

$

12,208


$

12,999


$

14,423


$

12,208


$

14,423

 Total Hexavest assets - beginning of period 

$

15,647


$

14,982


$

17,052


$

16,695


$

16,921


Sales and other inflows 


299



467



739



1,127



1,960


Redemptions/outflows 


(825)



(690)



(1,036)



(3,294)



(2,800)


  Net flows 


(526)



(223)



(297)



(2,167)



(840)


Exchanges 


-



-



-



-



-


Market value change 


(312)



888



286



281



960

 Total Hexavest assets - end of period 

$

14,809


$

15,647


$

17,041


$

14,809


$

17,041


















(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-nine-month-periods-ended-july-31-2015-300130589.html

SOURCE Eaton Vance Corp.

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