BOSTON, Aug. 17, 2016 /PRNewswire/ -- Eaton Vance Corp. (NYSE: EV) today reported earnings per diluted share of $0.55 for the third quarter of fiscal 2016, a decrease of 4 percent from $0.57 of earnings per diluted share in the third quarter of fiscal 2015 and an increase of 15 percent from $0.48 of earnings per diluted share in the second quarter of fiscal 2016.
The Company reported adjusted earnings per diluted share(1) of $0.56 for the third quarter of fiscal 2016, a decrease of 2 percent from $0.57 of adjusted earnings per diluted share in the third quarter of fiscal 2015 and an increase of 17 percent from $0.48 of adjusted earnings per diluted share in the second quarter of fiscal 2016. In the third quarter of fiscal 2016, adjusted earnings differed from GAAP earnings by $0.01 per diluted share to reflect $2.3 million of structuring fees paid in connection with the $215 million initial public offering of Eaton Vance High Income 2021 Target Term Trust in May.
Gains (losses) and other investment income related to seed capital investments contributed $0.01 and $0.02 per diluted share in the third quarter of fiscal 2016 and the second quarter of fiscal 2016, respectively, and were negligible in the third quarter of fiscal 2015.
Consolidated net inflows of $7.1 billion in the third quarter of fiscal 2016 represent a 9 percent annualized internal growth rate (consolidated net inflows divided by beginning of period consolidated assets under management). For comparison, the Company had consolidated net inflows of $3.9 billion in the third quarter of fiscal 2015 and $2.1 billion in the second quarter of fiscal 2016.
"Eaton Vance's third quarter earnings improved sharply over the preceding quarter, reflecting favorable market movement, positive organic revenue growth and continuing tight expense control." said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "Our mix of strongly performing active strategies and value-added passive products and services positions us well for this challenging period for investment managers."
Consolidated assets under management were $334.4 billion on July 31, 2016, up 7 percent from $312.6 billion of consolidated managed assets on July 31, 2015 and up 5 percent from $318.7 billion of consolidated managed assets on April 30, 2016. The year-over-year increase in consolidated assets under management reflects net inflows of $19.0 billion and market price appreciation of $2.8 billion. The sequential increase in consolidated assets under management reflects net inflows of $7.1 billion and market price appreciation of $8.7 billion.
Average consolidated assets under management were $324.9 billion in the third quarter of fiscal 2016, up 5 percent from $309.8 billion in the third quarter of fiscal 2015 and $309.5 billion in the second quarter of fiscal 2016.
Excluding performance-based fees, annualized effective investment advisory and administrative fee rates on consolidated assets under management averaged 35.7 basis points in the third quarter of fiscal 2016, down 8 percent from 39.0 basis points in the third quarter of fiscal 2015 and substantially unchanged from 35.8 basis points in the second quarter of fiscal 2016. The decline in average advisory and administrative fee rates year-over-year primarily reflects shifts in the Company's mix of business.
Attachments 5 and 6 summarize the Company's asset flows by investment mandate and investment vehicle. Attachments 7, 8 and 9 summarize the Company's ending consolidated assets under management by investment mandate, investment vehicle and investment affiliate. Attachment 10 shows the Company's average annualized effective investment advisory and administrative fee rates by investment mandate.
As shown in Attachments 5 and 6, consolidated sales and other inflows were $31.6 billion in the third quarter of fiscal 2016, down 4 percent from $32.8 billion in the third quarter of fiscal 2015 and up 14 percent from $27.8 billion in the second quarter of fiscal 2016. Consolidated redemptions and other outflows were $24.5 billion in the third quarter of fiscal 2016, down 15 percent from $28.9 billion in the third quarter of fiscal 2015 and down 5 percent from $25.7 billion in the second quarter of fiscal 2016.
As of July 31, 2016, the Company's 49 percent-owned affiliate Hexavest, Inc. ("Hexavest") managed $14.4 billion of client assets, down 3 percent from $14.8 billion of managed assets on July 31, 2015 and up 1 percent from $14.2 billion of managed assets on April 30, 2016. Hexavest-managed funds and separate accounts had net outflows of $0.5 billion in the third quarter of fiscal 2016, $0.5 billion in the third quarter of fiscal 2015 and $0.3 billion in the second quarter of fiscal 2016. Attachment 11 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, | |||||
2016 | 2016 | 2015 | |||||
Revenue | $ | 341,168 | $ | 323,290 | $ | 355,511 | |
Expenses | 234,443 | 227,522 | 238,778 | ||||
Operating income | 106,725 | 95,768 | 116,733 | ||||
Operating margin | 31.3% | 29.6% | 32.8% | ||||
Non-operating income (expense) | (4,131) | 7,479 | (7,584) | ||||
Income taxes | (39,781) | (36,169) | (43,435) | ||||
Equity in net income of affiliates, net of tax | 2,961 | 2,377 | 3,260 | ||||
Net income | 65,774 | 69,455 | 68,974 | ||||
Net income attributable to non-controlling | |||||||
and other beneficial interests | (2,875) | (14,488) | (265) | ||||
Net income attributable to | |||||||
Eaton Vance Corp. shareholders | $ | 62,899 | $ | 54,967 | $ | 68,709 | |
Adjusted net income attributable to Eaton | |||||||
Vance Corp. shareholders(1) | $ | 64,290 | $ | 54,967 | $ | 68,715 | |
Earnings per diluted share | $ | 0.55 | $ | 0.48 | $ | 0.57 | |
Adjusted earnings per diluted share(1) | $ | 0.56 | $ | 0.48 | $ | 0.57 | |
Third Quarter Fiscal 2016 vs. Third Quarter Fiscal 2015
In the third quarter of fiscal 2016, revenue decreased 4 percent to $341.2 million from $355.5 million in the third quarter of fiscal 2015. Investment advisory and administrative fees were down 4 percent, as lower average effective fee rates more than offset a 5 percent increase in average consolidated assets under management. Performance fees contributed $2.7 million in the third quarter of fiscal 2016 compared with $1.7 million in the third quarter of fiscal 2015. Distribution and service fee revenues collectively were down 7 percent, reflecting lower managed assets in fund share classes that are subject to these fees.
Operating expenses decreased 2 percent to $234.4 million in the third quarter of fiscal 2016 from $238.8 million in the third quarter of fiscal 2015. Decreases in compensation, service fees and fund-related expenses were partially offset by slightly higher other operating expenses. The decrease in compensation expense reflects lower stock-based compensation accruals and other compensation costs. The decrease in service fee expense reflects lower average assets under management in fund share classes subject to service fee payments. The decrease in fund-related expenses reflects lower sub-advisory fees paid and reduced fund subsidies, as well as lower fund expenses borne by the Company on funds for which it earns an all-in fee. Other operating expenses increased 1 percent, reflecting higher information technology and facilities expenses offset by lower professional services and travel expenses.
Expenses in connection with the Company's NextShares™ exchange-traded managed funds ("NextShares") initiative totaled $2.4 million in the third quarter of fiscal 2016, an increase of 17 percent from $2.0 million in the third quarter of fiscal 2015. In May, Interactive Brokers Group, Inc., an automated global electronic broker and market maker, announced plans to offer NextShares to retail investors and financial professionals through its investing and trading platforms. In July, UBS Financial Services announced plans to offer NextShares through its financial advisor network to its wealth management clients. UBS Asset Management (Americas) also announced plans to develop and launch UBS sponsored-NextShares funds. Also in July, NEPC, LLC announced an agreement with Eaton Vance Management for NEPC to lead a selection process to identify investment managers to sub-advise a series of new Eaton Vance sponsored-NextShares funds to be offered to retail investors and financial professionals.
Operating income was down 9 percent to $106.7 million in the third quarter of fiscal 2016 from $116.7 million in the third quarter of fiscal 2015. Operating margin decreased to 31.3 percent in the third quarter of fiscal 2016 from 32.8 percent in the third quarter of fiscal 2015. Adjusted to remove the $2.3 million of structuring fees paid in connection with the May 2016 initial public offering of Eaton Vance High Income 2021 Target Term Trust, operating income in the third quarter of fiscal 2016 was down 7 percent from the third quarter of fiscal 2015 and adjusted operating margins in the current quarter were 32.0 percent.
Non-operating expense totaled $4.1 million in the third quarter of fiscal 2016 compared to non-operating expense of $7.6 million in the third quarter of fiscal 2015. The year-over-year change primarily reflects an increase of $4.0 million in gains and other investment income related to the Company's investments in sponsored products.
The Company's effective tax rate, calculated as a percentage of income before income taxes and equity in net income of affiliates, was 38.8 percent in the third quarter of fiscal 2016.
Equity in net income of affiliates decreased to $3.0 million in the third quarter of fiscal 2016 from $3.3 million in the third quarter of fiscal 2015. In the third quarter of fiscal 2016, substantially all of the $3.0 million of equity in net income of affiliates related to the Company's investment in Hexavest. Equity in net income of affiliates in the third quarter of fiscal 2015 included $2.9 million from the Company's investment in Hexavest and $0.4 million from a private equity partnership.
As detailed in Attachment 3, net income attributable to non-controlling and other beneficial interests was $2.9 million in the third quarter of fiscal 2016 compared with $0.3 million in the third quarter of fiscal 2015.
Third Quarter Fiscal 2016 vs. Second Quarter Fiscal 2016
In the third quarter of fiscal 2016, revenue increased 6 percent to $341.2 million from $323.3 million in the second quarter of fiscal 2016. Investment advisory and administrative fees were up 6 percent, primarily reflecting a 5 percent increase in average consolidated assets and more fee days in the quarter. Performance fees contributed $2.7 million in the third quarter of fiscal 2016 and were negligible in the second quarter of fiscal 2016. Distribution and service fee revenues collectively increased 4 percent, reflecting higher managed assets in fund share classes that are subject to these fees.
Operating expenses increased 3 percent in the third quarter of fiscal 2016 from the second quarter of fiscal 2016. The increase in distribution expense primarily reflects the $2.3 million of structuring fees paid in connection with the May 2016 initial public offering of Eaton Vance High Income 2021 Target Term Trust. The increase in service fee expense reflects higher average assets under management in fund share classes subject to service fee payments. The increase in fund-related expenses primarily reflects increases in sub-advisory fees paid and higher expenses borne by the Company on funds for which it earns an all-in fee. Other operating expenses increased 3 percent primarily due to higher information technology expenses.
NextShares-related expenses increased 27 percent to $2.4 million in the third quarter of fiscal 2016 from $1.9 million in the second quarter of fiscal 2016.
Operating income was up 11 percent to $106.7 million in the third quarter of fiscal 2016 from $95.8 million in the second quarter of fiscal 2016. Operating margin increased to 31.3 percent in the third quarter of fiscal 2016 from 29.6 percent in the second quarter of fiscal 2016. Adjusted to remove the structuring fees paid in connection with the May 2016 initial public offering of Eaton Vance High Income 2021 Target Term Trust, operating income in the third quarter of fiscal 2016 was up 14 percent from the second quarter of fiscal 2016 and adjusted operating margins in the current quarter were 32.0 percent.
Non-operating expense totaled $4.1 million in the third quarter of fiscal 2016 compared to $7.5 million of non-operating income in the second quarter of fiscal 2016, reflecting a $0.6 million decline in gains (losses) and other investment income related to the Company's investments in sponsored products and an $11.0 million decrease in income (expense) of the Company's consolidated CLO entity.
Equity in net income of affiliates increased to $3.0 million in the third quarter of fiscal 2016 from $2.4 million in the second quarter of fiscal 2016. In the third quarter of fiscal 2016, substantially all of the $3.0 million in equity in net income of affiliates related to the Company's investment in Hexavest. In the second quarter of fiscal 2016, $2.2 million of equity in net income of affiliates was attributable to the Company's investment in Hexavest and $0.2 million of net income was attributable to a private equity partnership in which the Company invests.
As detailed in Attachment 3, net income attributable to non-controlling and other beneficial interests was $2.9 million in the third quarter of fiscal 2016 compared to $14.5 million in the second quarter of fiscal 2016.
Balance Sheet Information
Cash and cash equivalents totaled $378.2 million on July 31, 2016, with no outstanding borrowings against the Company's $300 million credit facility. Included within investments is $98.6 million of holdings of short-term debt securities with maturities between 90 days and one year. During the first nine months of fiscal 2016, the Company used $205.0 million to repurchase and retire approximately 6.1 million shares of its Non-Voting Common Stock under its repurchase authorizations. Of the current 8.0 million share repurchase authorization, approximately 4.2 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 three months and nine months ended July 31, 2016. 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." A webcast of the conference call can also be accessed via Eaton Vance's website, 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, eatonvance.com. To listen to the replay, enter the conference ID number 60613114 when instructed.
About Eaton Vance Corp.
Eaton Vance is a leading global asset manager whose history dates to 1924. With offices in North America, Europe, Asia and Australia, 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 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. We provide disclosures of adjusted net income attributable to Eaton Vance Corp. shareholders and adjusted earnings per diluted share to reflect the fact that our management and Board of Directors, as well as our outside investors, consider these adjusted numbers a measure of the Company's underlying operating performance. Management believes adjusted net income attributable to Eaton Vance Corp. shareholders and adjusted earnings per diluted share are important indicators of our operations because they exclude items that may not be indicative of, or are unrelated to, our core operating results, and may provide a better baseline for analyzing trends in our underlying business. 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 2016 | Q3 2016 | ||||||||||||||||||
July 31, | April 30, | July 31, | vs. | vs. | July 31, | July 31, | % | ||||||||||||
2016 | 2016 | 2015 | Q2 2016 | Q3 2015 | 2016 | 2015 | Change | ||||||||||||
Revenue: | |||||||||||||||||||
Investment advisory and administrative fees | $ | 292,814 | $ | 276,883 | $ | 303,625 | 6 | % | (4) | % | $ | 852,739 | $ | 906,062 | (6) | % | |||
Distribution and underwriter fees | 18,883 | 18,275 | 20,285 | 3 | (7) | 56,216 | 61,369 | (8) | |||||||||||
Service fees | 27,150 | 25,794 | 29,265 | 5 | (7) | 80,203 | 87,573 | (8) | |||||||||||
Other revenue | 2,321 | 2,338 | 2,336 | (1) | (1) | 6,856 | 7,101 | (3) | |||||||||||
Total revenue | 341,168 | 323,290 | 355,511 | 6 | (4) | 996,014 | 1,062,105 | (6) | |||||||||||
Expenses: | |||||||||||||||||||
Compensation and related costs | 121,827 | 121,519 | 124,400 | - | (2) | 365,856 | 364,667 | - | |||||||||||
Distribution expense | 31,616 | 28,239 | 31,300 | 12 | 1 | 88,338 | 167,649 | (47) | |||||||||||
Service fee expense | 24,831 | 23,610 | 26,978 | 5 | (8) | 73,036 | 81,116 | (10) | |||||||||||
Amortization of deferred sales commissions | 3,861 | 3,957 | 3,767 | (2) | 2 | 11,862 | 11,187 | 6 | |||||||||||
Fund-related expenses | 8,939 | 8,031 | 9,446 | 11 | (5) | 26,133 | 27,084 | (4) | |||||||||||
Other expenses | 43,369 | 42,166 | 42,887 | 3 | 1 | 127,671 | 120,888 | 6 | |||||||||||
Total expenses | 234,443 | 227,522 | 238,778 | 3 | (2) | 692,896 | 772,591 | (10) | |||||||||||
Operating income | 106,725 | 95,768 | 116,733 | 11 | (9) | 303,118 | 289,514 | 5 | |||||||||||
Non-operating income (expense): | |||||||||||||||||||
Gains (losses) and other investment | |||||||||||||||||||
income, net | 3,137 | 3,789 | (850) | (17) | NM | 9,766 | 2,299 | 325 | |||||||||||
Interest expense | (7,342) | (7,340) | (7,344) | - | - | (22,024) | (22,017) | - | |||||||||||
Other income (expense) of consolidated | |||||||||||||||||||
collateralized loan obligation | |||||||||||||||||||
("CLO") entities: | |||||||||||||||||||
Gains and other investment | |||||||||||||||||||
income, net | 4,467 | 13,908 | 1,771 | (68) | 152 | 21,654 | 5,284 | 310 | |||||||||||
Interest expense | (4,393) | (2,878) | (1,161) | 53 | 278 | (9,107) | (2,966) | 207 | |||||||||||
Total non-operating income (expense) | (4,131) | 7,479 | (7,584) | NM | (46) | 289 | (17,400) | NM | |||||||||||
Income before income taxes and equity | |||||||||||||||||||
in net income of affiliates | 102,594 | 103,247 | 109,149 | (1) | (6) | 303,407 | 272,114 | 11 | |||||||||||
Income taxes | (39,781) | (36,169) | (43,435) | 10 | (8) | (112,793) | (104,101) | 8 | |||||||||||
Equity in net income of affiliates, net of tax | 2,961 | 2,377 | 3,260 | 25 | (9) | 7,847 | 9,363 | (16) | |||||||||||
Net income | 65,774 | 69,455 | 68,974 | (5) | (5) | 198,461 | 177,376 | 12 | |||||||||||
Net income attributable to non-controlling | |||||||||||||||||||
and other beneficial interests | (2,875) | (14,488) | (265) | (80) | 985 | (22,209) | (9,280) | 139 | |||||||||||
Net income attributable to | |||||||||||||||||||
Eaton Vance Corp. Shareholders | $ | 62,899 | $ | 54,967 | $ | 68,709 | 14 | (8) | $ | 176,252 | $ | 168,096 | 5 | ||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 0.57 | $ | 0.50 | $ | 0.60 | 14 | (5) | $ | 1.60 | $ | 1.45 | 10 | ||||||
Diluted | $ | 0.55 | $ | 0.48 | $ | 0.57 | 15 | (4) | $ | 1.55 | $ | 1.39 | 12 | ||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 109,533 | 110,459 | 113,406 | (1) | (3) | 110,275 | 113,890 | (3) | |||||||||||
Diluted | 113,810 | 113,667 | 118,281 | - | (4) | 114,044 | 119,013 | (4) | |||||||||||
Dividends declared per share | $ | 0.265 | $ | 0.265 | $ | 0.250 | - | 6 | $ | 0.795 | $ | 0.750 | 6 | ||||||
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 2016 vs. | Q3 2016 vs. | July 31, | July 31, | % | |||||||||||||
(in thousands, except per share figures) | 2016 | 2016 | 2015 | Q2 2016 | Q3 2015 | 2016 | 2015 | Change | ||||||||||||
Net income attributable to Eaton | ||||||||||||||||||||
Vance Corp. shareholders | $ | 62,899 | $ | 54,967 | $ | 68,709 | 14 | % | (8) | % | $ | 176,252 | $ | 168,096 | 5 | % | ||||
Non-controlling interest value adjustments | (10) | - | 6 | NM | NM | 123 | 203 | (39) | ||||||||||||
Closed-end fund structuring fees, | ||||||||||||||||||||
net of tax(1) | 1,401 | - | - | NM | NM | 1,401 | - | NM | ||||||||||||
Payments to end certain closed-end fund | ||||||||||||||||||||
service and additional compensation | ||||||||||||||||||||
arrangements, net of tax(2) | - | - | - | - | - | - | 44,895 | NM | ||||||||||||
Adjusted net income attributable | ||||||||||||||||||||
to Eaton Vance Corp. | ||||||||||||||||||||
shareholders | $ | 64,290 | $ | 54,967 | $ | 68,715 | 17 | (6) | $ | 177,776 | $ | 213,194 | (17) | |||||||
Earnings per diluted share | $ | 0.55 | $ | 0.48 | $ | 0.57 | 15 | (4) | $ | 1.55 | $ | 1.39 | 12 | |||||||
Non-controlling interest value adjustments | - | - | - | - | - | - | - | - | ||||||||||||
Closed-end fund structuring fees, net of tax | 0.01 | - | - | NM | NM | 0.01 | - | NM | ||||||||||||
Payments to end certain closed-end fund | ||||||||||||||||||||
service and additional compensation | ||||||||||||||||||||
arrangements, net of tax | - | - | - | - | - | - | 0.37 | NM | ||||||||||||
Adjusted earnings per diluted share | $ | 0.56 | $ | 0.48 | $ | 0.57 | 17 | (2) | $ | 1.56 | $ | 1.76 | (11) | |||||||
Eaton Vance Corp. | ||||||||||||||||||||
Reconciliation of operating income and operating margin | ||||||||||||||||||||
to adjusted operating income and adjusted operating margin | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
% Change | % Change | |||||||||||||||||||
July 31, | April 30, | July 31, | Q3 2016 vs. | Q3 2016 vs. | July 31, | July 31, | % | |||||||||||||
(in thousands) | 2016 | 2016 | 2015 | Q2 2016 | Q3 2015 | 2016 | 2015 | Change | ||||||||||||
Operating income | $ | 106,725 | $ | 95,768 | $ | 116,733 | 11 | % | (9) | % | $ | 303,118 | $ | 289,514 | 5 | % | ||||
Closed-end fund structuring fees(1) | 2,291 | - | - | NM | NM | 2,291 | - | NM | ||||||||||||
Payments to end certain closed-end fund | ||||||||||||||||||||
service and additional compensation | ||||||||||||||||||||
arrangements(2) | - | - | - | - | - | - | 73,000 | NM | ||||||||||||
Adjusted operating income | $ | 109,016 | $ | 95,768 | $ | 116,733 | 14 | (7) | $ | 305,409 | $ | 362,514 | (16) | |||||||
Operating margin | 31.3 | % | 29.6 | % | 32.8 | % | 6 | (5) | 30.4 | % | 27.3 | % | 11 | |||||||
Closed-end fund structuring fees | 0.7 | - | - | NM | NM | 0.3 | - | NM | ||||||||||||
Payments to end certain closed-end fund | ||||||||||||||||||||
service and additional compensation | ||||||||||||||||||||
arrangements | - | - | - | - | - | - | 6.8 | NM | ||||||||||||
Adjusted operating margin | 32.0 | % | 29.6 | % | 32.8 | % | 8 | (2) | 30.7 | % | 34.1 | % | (10) | |||||||
(1) Reflects structuring fees of $2.3 million paid in connection with the May 2016 initial public offering of Eaton Vance High Income 2021 Target Term Trust, net of the | ||||||||||||||||||||
associated impact to taxes of $0.9 million calculated using the Company's effective tax rate. | ||||||||||||||||||||
(2) Reflects a $73.0 million payment to end certain fund services and additional compensation arrangements for certain Eaton Vance closed-end funds, net of the associated | ||||||||||||||||||||
impact to taxes of $28.1 million calculated using the Company's effective tax rate. | ||||||||||||||||||||
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 2016 vs. | Q3 2016 vs. | July 31, | July 31, | % | |||||||||||
(in thousands) | 2016 | 2016 | 2015 | Q2 2016 | Q3 2015 | 2016 | 2015 | Change | ||||||||||
Consolidated sponsored funds | $ | 343 | $ | 493 | $ | (1,027) | (30) | % | NM | % | $ | 327 | $ | (1,226) | NM | % | ||
Majority-owned subsidiaries | 3,233 | 3,206 | 4,066 | 1 | (20) | 9,749 | 11,742 | (17) | ||||||||||
Non-controlling interest value adjustments | (9) | - | 6 | NM | NM | 124 | 203 | (39) | ||||||||||
Consolidated CLO entities | (692) | 10,789 | (2,780) | NM | (75) | 12,009 | (1,439) | NM | ||||||||||
Net income attributable to non-controlling | ||||||||||||||||||
and other beneficial interests | $ | 2,875 | $ | 14,488 | $ | 265 | (80) | 985 | $ | 22,209 | $ | 9,280 | 139 | |||||
Attachment 4 | |||||||
Eaton Vance Corp. | |||||||
Balance Sheet | |||||||
(in thousands, except per share figures) | |||||||
July 31, | October 31, | ||||||
2016 | 2015 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 378,156 | $ | 465,558 | |||
Investment advisory fees and other receivables | 182,050 | 187,753 | |||||
Investments | 563,609 | 507,020 | |||||
Assets of consolidated CLO entity: | |||||||
Cash and cash equivalents | 18,278 | 162,704 | |||||
Bank loans and other investments | 379,988 | 304,250 | |||||
Other assets | 21,976 | 128 | |||||
Deferred sales commissions | 26,114 | 25,161 | |||||
Deferred income taxes | 26,046 | 42,164 | |||||
Equipment and leasehold improvements, net | 45,194 | 44,943 | |||||
Intangible assets, net | 48,944 | 55,433 | |||||
Goodwill | 248,091 | 237,961 | |||||
Loan to affiliate | 5,000 | - | |||||
Other assets | 55,910 | 83,396 | |||||
Total assets | $ | 1,999,356 | $ | 2,116,471 | |||
Liabilities, Temporary Equity and Permanent Equity | |||||||
Liabilities: | |||||||
Accrued compensation | $ | 127,888 | $ | 178,875 | |||
Accounts payable and accrued expenses | 67,364 | 65,249 | |||||
Dividend payable | 33,934 | 32,923 | |||||
Debt | 573,928 | 573,811 | |||||
Liabilities of consolidated CLO entity: | |||||||
Senior and subordinated note obligations | 387,783 | 397,039 | |||||
Other liabilities | 21,852 | 70,814 | |||||
Other liabilities | 72,300 | 86,891 | |||||
Total liabilities | 1,285,049 | 1,405,602 | |||||
Commitments and contingencies | |||||||
Temporary Equity: | |||||||
Redeemable non-controlling interests | 90,576 | 88,913 | |||||
Total temporary equity | 90,576 | 88,913 | |||||
Permanent Equity: | |||||||
Voting Common Stock, par value $0.00390625 per share: | |||||||
Authorized, 1,280,000 shares | |||||||
Issued and outstanding, 442,932 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, 112,709,623 and 115,470,485 shares, respectively | 440 | 451 | |||||
Additional paid-in capital | - | - | |||||
Notes receivable from stock option exercises | (9,673) | (11,143) | |||||
Accumulated other comprehensive loss | (49,767) | (48,586) | |||||
Appropriated retained earnings (deficit) | 6,671 | (5,338) | |||||
Retained earnings | 674,236 | 684,845 | |||||
Total Eaton Vance Corp. shareholders' equity | 621,909 | 620,231 | |||||
Non-redeemable non-controlling interests | 1,822 | 1,725 | |||||
Total permanent equity | 623,731 | 621,956 | |||||
Total liabilities, temporary equity and permanent equity | $ | 1,999,356 | $ | 2,116,471 | |||
Attachment 5 | |||||||||||||||
Eaton Vance Corp. | |||||||||||||||
Consolidated Assets Under Management and Net Flows by Investment Mandate(1) | |||||||||||||||
(in millions) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
July 31, | April 30, | July 31, | July 31, | July 31, | |||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||
Equity assets – beginning of period(2) | $ | 88,553 | $ | 83,351 | $ | 97,167 | $ | 90,013 | $ | 96,379 | |||||
Sales and other inflows | 3,764 | 3,906 | 5,191 | 11,502 | 13,670 | ||||||||||
Redemptions/outflows | (3,441) | (4,170) | (8,371) | (12,004) | (17,876) | ||||||||||
Net flows | 323 | (264) | (3,180) | (502) | (4,206) | ||||||||||
Exchanges | (26) | (5) | (19) | (18) | 40 | ||||||||||
Market value change | 2,987 | 5,471 | (602) | 2,344 | 1,153 | ||||||||||
Equity assets – end of period | $ | 91,837 | $ | 88,553 | $ | 93,366 | $ | 91,837 | $ | 93,366 | |||||
Fixed income assets – beginning of period(3) | 56,259 | 52,756 | 49,690 | 52,373 | 46,062 | ||||||||||
Sales and other inflows | 5,109 | 5,675 | 5,370 | 15,716 | 13,997 | ||||||||||
Redemptions/outflows | (2,707) | (3,090) | (3,212) | (9,973) | (8,158) | ||||||||||
Net flows | 2,402 | 2,585 | 2,158 | 5,743 | 5,839 | ||||||||||
Exchanges | (3) | 17 | (27) | 44 | 52 | ||||||||||
Market value change | 616 | 901 | (555) | 1,114 | (687) | ||||||||||
Fixed income assets – end of period | $ | 59,274 | $ | 56,259 | $ | 51,266 | $ | 59,274 | $ | 51,266 | |||||
Floating-rate income assets – beginning of period | 32,773 | 32,676 | 38,269 | 35,619 | 42,009 | ||||||||||
Sales and other inflows | 2,009 | 1,490 | 2,032 | 5,403 | 6,720 | ||||||||||
Redemptions/outflows | (2,507) | (2,719) | (2,554) | (8,655) | (10,941) | ||||||||||
Net flows | (498) | (1,229) | (522) | (3,252) | (4,221) | ||||||||||
Exchanges | 6 | (14) | 2 | (44) | (124) | ||||||||||
Market value change | 202 | 1,340 | (529) | 160 | (444) | ||||||||||
Floating-rate income assets – end of period | $ | 32,483 | $ | 32,773 | $ | 37,220 | $ | 32,483 | $ | 37,220 | |||||
Alternative assets – beginning of period | 9,719 | 9,730 | 10,582 | 10,173 | 11,241 | ||||||||||
Sales and other inflows | 1,182 | 614 | 721 | 3,016 | 2,351 | ||||||||||
Redemptions/outflows | (1,009) | (743) | (869) | (2,961) | (3,076) | ||||||||||
Net flows | 173 | (129) | (148) | 55 | (725) | ||||||||||
Exchanges | (1) | (1) | 45 | - | 27 | ||||||||||
Market value change | 70 | 119 | (146) | (267) | (210) | ||||||||||
Alternative assets – end of period | $ | 9,961 | $ | 9,719 | $ | 10,333 | $ | 9,961 | $ | 10,333 | |||||
Portfolio implementation assets – beginning of period | 66,132 | 58,920 | 52,879 | 59,487 | 48,008 | ||||||||||
Sales and other inflows | 5,857 | 5,176 | 8,395 | 16,801 | 14,493 | ||||||||||
Redemptions/outflows | (2,946) | (2,379) | (1,988) | (7,253) | (5,352) | ||||||||||
Net flows | 2,911 | 2,797 | 6,407 | 9,548 | 9,141 | ||||||||||
Exchanges | - | (3) | - | (13) | - | ||||||||||
Market value change | 3,385 | 4,418 | (52) | 3,406 | 2,085 | ||||||||||
Portfolio implementation assets – end of period | $ | 72,428 | $ | 66,132 | $ | 59,234 | $ | 72,428 | $ | 59,234 | |||||
Exposure management assets – beginning of period | 65,235 | 65,146 | 62,459 | 63,689 | 54,036 | ||||||||||
Sales and other inflows | 13,663 | 10,938 | 11,113 | 37,530 | 42,668 | ||||||||||
Redemptions/outflows | (11,912) | (12,626) | (11,909) | (34,661) | (36,391) | ||||||||||
Net flows | 1,751 | (1,688) | (796) | 2,869 | 6,277 | ||||||||||
Market value change | 1,421 | 1,777 | (526) | 1,849 | 824 | ||||||||||
Exposure management assets – end of period | $ | 68,407 | $ | 65,235 | $ | 61,137 | $ | 68,407 | $ | 61,137 | |||||
Total assets under management – beginning of period | 318,671 | 302,579 | 311,046 | 311,354 | 297,735 | ||||||||||
Sales and other inflows | 31,584 | 27,799 | 32,822 | 89,968 | 93,899 | ||||||||||
Redemptions/outflows | (24,522) | (25,727) | (28,903) | (75,507) | (81,794) | ||||||||||
Net flows | 7,062 | 2,072 | 3,919 | 14,461 | 12,105 | ||||||||||
Exchanges | (24) | (6) | 1 | (31) | (5) | ||||||||||
Market value change | 8,681 | 14,026 | (2,410) | 8,606 | 2,721 | ||||||||||
Total assets under management – end of period | $ | 334,390 | $ | 318,671 | $ | 312,556 | $ | 334,390 | $ | 312,556 | |||||
(1) Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc. | |||||||||||||||
(2) Includes balanced and multi-asset mandates. | |||||||||||||||
(3) Includes cash management mandates. | |||||||||||||||
Attachment 6 | ||||||||||||||||
Eaton Vance Corp. | ||||||||||||||||
Consolidated Assets Under Management and Net Flows by Investment Vehicle(1) | ||||||||||||||||
(in millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
July 31, | April 30, | July 31, | July 31, | July 31, | ||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Fund assets – beginning of period(2) | $ | 122,902 | $ | 117,788 | $ | 132,161 | $ | 125,934 | $ | 134,564 | ||||||
Sales and other inflows | 7,571 | 6,977 | 7,016 | 22,807 | 23,385 | |||||||||||
Redemptions/outflows | (6,385) | (6,842) | (7,570) | (22,941) | (26,698) | |||||||||||
Net flows | 1,186 | 135 | (554) | (134) | (3,313) | |||||||||||
Exchanges | (24) | (6) | 1 | (84) | 185 | |||||||||||
Market value change | 2,295 | 4,985 | (1,397) | 643 | (1,225) | |||||||||||
Fund assets – end of period | $ | 126,359 | $ | 122,902 | $ | 130,211 | $ | 126,359 | $ | 130,211 | ||||||
Institutional separate account assets – | ||||||||||||||||
beginning of period | 126,620 | 120,197 | 115,942 | 119,987 | 106,443 | |||||||||||
Sales and other inflows | 19,501 | 15,109 | 21,764 | 51,341 | 57,678 | |||||||||||
Redemptions/outflows | (15,225) | (14,735) | (18,424) | (42,072) | (47,323) | |||||||||||
Net flows | 4,276 | 374 | 3,340 | 9,269 | 10,355 | |||||||||||
Exchanges | - | 436 | (34) | 420 | (207) | |||||||||||
Market value change | 3,684 | 5,613 | (1,162) | 4,904 | 1,495 | |||||||||||
Institutional separate account assets – | ||||||||||||||||
end of period | $ | 134,580 | $ | 126,620 | $ | 118,086 | $ | 134,580 | $ | 118,086 | ||||||
High-net-worth separate account assets – | ||||||||||||||||
beginning of period | 24,565 | 23,999 | 24,226 | 24,516 | 22,235 | |||||||||||
Sales and other inflows | 903 | 1,417 | 1,177 | 4,583 | 3,803 | |||||||||||
Redemptions/outflows | (803) | (2,055) | (877) | (3,997) | (2,291) | |||||||||||
Net flows | 100 | (638) | 300 | 586 | 1,512 | |||||||||||
Exchanges | 1 | (409) | - | (337) | (94) | |||||||||||
Market value change | 1,157 | 1,613 | (34) | 1,058 | 839 | |||||||||||
High-net-worth separate account assets – | ||||||||||||||||
end of period | $ | 25,823 | $ | 24,565 | $ | 24,492 | $ | 25,823 | $ | 24,492 | ||||||
Retail managed account assets – beginning of period | 44,584 | 40,595 | 38,717 | 40,917 | 34,493 | |||||||||||
Sales and other inflows | 3,609 | 4,296 | 2,865 | 11,237 | 9,033 | |||||||||||
Redemptions/outflows | (2,109) | (2,095) | (2,032) | (6,497) | (5,482) | |||||||||||
Net flows | 1,500 | 2,201 | 833 | 4,740 | 3,551 | |||||||||||
Exchanges | (1) | (27) | 34 | (30) | 111 | |||||||||||
Market value change | 1,545 | 1,815 | 183 | 2,001 | 1,612 | |||||||||||
Retail managed account assets – end of period | $ | 47,628 | $ | 44,584 | $ | 39,767 | $ | 47,628 | $ | 39,767 | ||||||
Total assets under management – beginning of period | 318,671 | 302,579 | 311,046 | 311,354 | 297,735 | |||||||||||
Sales and other inflows | 31,584 | 27,799 | 32,822 | 89,968 | 93,899 | |||||||||||
Redemptions/outflows | (24,522) | (25,727) | (28,903) | (75,507) | (81,794) | |||||||||||
Net flows | 7,062 | 2,072 | 3,919 | 14,461 | 12,105 | |||||||||||
Exchanges | (24) | (6) | 1 | (31) | (5) | |||||||||||
Market value change | 8,681 | 14,026 | (2,410) | 8,606 | 2,721 | |||||||||||
Total assets under management – end of period | $ | 334,390 | $ | 318,671 | $ | 312,556 | $ | 334,390 | $ | 312,556 | ||||||
(1) Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc. | ||||||||||||||||
(2) Includes assets in cash management funds. | ||||||||||||||||
Attachment 7 | |||||||||||||
Eaton Vance Corp. | |||||||||||||
Consolidated Assets under Management by Investment Mandate (1) | |||||||||||||
(in millions) | |||||||||||||
July 31, | April 30, | % | July 31, | % | |||||||||
2016 | 2016 | Change | 2015 | Change | |||||||||
Equity(2) | $ | 91,837 | $ | 88,553 | 4% | $ | 93,366 | -2% | |||||
Fixed income(3) | 59,274 | 56,259 | 5% | 51,266 | 16% | ||||||||
Floating-rate income | 32,483 | 32,773 | -1% | 37,220 | -13% | ||||||||
Alternative | 9,961 | 9,719 | 2% | 10,333 | -4% | ||||||||
Portfolio implementation | 72,428 | 66,132 | 10% | 59,234 | 22% | ||||||||
Exposure management | 68,407 | 65,235 | 5% | 61,137 | 12% | ||||||||
Total | $ | 334,390 | $ | 318,671 | 5% | $ | 312,556 | 7% | |||||
(1) Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc. | |||||||||||||
(2) Includes balanced and multi-asset mandates. | |||||||||||||
(3) Includes cash management mandates. | |||||||||||||
Attachment 8 | |||||||||||||
Eaton Vance Corp. | |||||||||||||
Consolidated Assets under Management by Investment Vehicle (1) | |||||||||||||
(in millions) | |||||||||||||
July 31, | April 30, | % | July 31, | % | |||||||||
2016 | 2016 | Change | 2015 | Change | |||||||||
Open-end funds(2) | $ | 74,699 | $ | 72,486 | 3% | $ | 78,932 | -5% | |||||
Private funds(3) | 27,661 | 26,908 | 3% | 26,202 | 6% | ||||||||
Closed-end funds(4) | 23,999 | 23,508 | 2% | 25,077 | -4% | ||||||||
Institutional separate account assets | 134,580 | 126,620 | 6% | 118,086 | 14% | ||||||||
High-net-worth separate account assets | 25,823 | 24,565 | 5% | 24,492 | 5% | ||||||||
Retail managed separate account assets | 47,628 | 44,584 | 7% | 39,767 | 20% | ||||||||
Total | $ | 334,390 | $ | 318,671 | 5% | $ | 312,556 | 7% | |||||
(1) Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc. | |||||||||||||
(2) Includes assets in NextShares funds. | |||||||||||||
(3) Includes privately offered equity, fixed income and floating-rate income funds and CLO entities. | |||||||||||||
(4) Includes unit investment trusts. | |||||||||||||
Attachment 9 | |||||||||||||
Eaton Vance Corp. | |||||||||||||
Consolidated Assets under Management by Investment Affiliate (1) | |||||||||||||
(in millions) | |||||||||||||
July 31, | April 30, | % | July 31, | % | |||||||||
2016 | 2016 | Change | 2015 | Change | |||||||||
Eaton Vance Management(2) | $ | 143,688 | $ | 139,534 | 3% | $ | 142,987 | 0% | |||||
Parametric | 171,571 | 160,935 | 7% | 150,983 | 14% | ||||||||
Atlanta Capital | 19,131 | 18,202 | 5% | 18,586 | 3% | ||||||||
Total | $ | 334,390 | $ | 318,671 | 5% | $ | 312,556 | 7% | |||||
(1) Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc. | |||||||||||||
(2) Includes managed assets of wholly owned subsidiaries and Eaton Vance-sponsored funds and accounts managed by Hexavest and unaffiliated | |||||||||||||
third-party advisers under Eaton Vance supervision. | |||||||||||||
Attachment 10 | |||||||||||||
Eaton Vance Corp. | |||||||||||||
Average Annualized Effective Investment Advisory and Administrative Fee Rates by Investment Mandate (1) | |||||||||||||
(in basis points on average managed assets) | |||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||
July 31, | April 30, | % | July 31, | % | |||||||||
2016 | 2016 | Change | 2015 | Change | |||||||||
Equity | 62.9 | 62.5 | 1% | 64.4 | -2% | ||||||||
Fixed income | 39.8 | 39.6 | 1% | 42.7 | -7% | ||||||||
Floating-rate income | 51.7 | 51.4 | 1% | 53.8 | -4% | ||||||||
Alternative | 63.8 | 62.4 | 2% | 63.1 | 1% | ||||||||
Portfolio implementation | 14.8 | 14.9 | -1% | 14.8 | 0% | ||||||||
Exposure management | 5.2 | 5.4 | -4% | 5.4 | -4% | ||||||||
Total | 35.7 | 35.8 | 0% | 39.0 | -8% | ||||||||
(1) Excludes performance fees received, which were $2.7 million for the three months ended July 31, 2016, negligible for the three months ended | |||||||||||||
April 30, 2016, and $1.7 million for the three months ended July 31, 2015. | |||||||||||||
Attachment 11 | ||||||||||||||||
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, | ||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Eaton Vance distributed: | ||||||||||||||||
Eaton Vance sponsored funds – beginning of period(1) | $ | 226 | $ | 205 | $ | 247 | $ | 229 | $ | 227 | ||||||
Sales and other inflows | 1 | 5 | 2 | 13 | 21 | |||||||||||
Redemptions/outflows | (7) | (4) | (6) | (32) | (15) | |||||||||||
Net flows | (6) | 1 | (4) | (19) | 6 | |||||||||||
Market value change | 11 | 20 | (4) | 21 | 6 | |||||||||||
Eaton Vance sponsored funds – end of period | $ | 231 | $ | 226 | $ | 239 | $ | 231 | $ | 239 | ||||||
Eaton Vance distributed separate accounts – | ||||||||||||||||
beginning of period(2) | $ | 2,557 | $ | 2,344 | $ | 2,401 | $ | 2,440 | $ | 2,367 | ||||||
Sales and other inflows | 28 | 22 | 11 | 54 | 395 | |||||||||||
Redemptions/outflows | (59) | (25) | (39) | (94) | (475) | |||||||||||
Net flows | (31) | (3) | (28) | (40) | (80) | |||||||||||
Market value change | 132 | 216 | (11) | 258 | 75 | |||||||||||
Eaton Vance distributed separate accounts – | ||||||||||||||||
end of period | $ | 2,658 | $ | 2,557 | $ | 2,362 | $ | 2,658 | $ | 2,362 | ||||||
Total Eaton Vance distributed – beginning of period | $ | 2,783 | $ | 2,549 | $ | 2,648 | $ | 2,669 | $ | 2,594 | ||||||
Sales and other inflows | 29 | 27 | 13 | 67 | 416 | |||||||||||
Redemptions/outflows | (66) | (29) | (45) | (126) | (490) | |||||||||||
Net flows | (37) | (2) | (32) | (59) | (74) | |||||||||||
Market value change | 143 | 236 | (15) | 279 | 81 | |||||||||||
Total Eaton Vance distributed – end of period | $ | 2,889 | $ | 2,783 | $ | 2,601 | $ | 2,889 | $ | 2,601 | ||||||
Hexavest directly distributed – beginning of period(3) | $ | 11,435 | $ | 10,533 | $ | 12,999 | $ | 11,279 | $ | 14,101 | ||||||
Sales and other inflows | 308 | 173 | 286 | 610 | 711 | |||||||||||
Redemptions/outflows | (734) | (442) | (780) | (1,505) | (2,804) | |||||||||||
Net flows | (426) | (269) | (494) | (895) | (2,093) | |||||||||||
Market value change | 513 | 1,171 | (297) | 1,138 | 200 | |||||||||||
Hexavest directly distributed – end of period | $ | 11,522 | $ | 11,435 | $ | 12,208 | $ | 11,522 | $ | 12,208 | ||||||
Total Hexavest managed assets – beginning of period | $ | 14,218 | $ | 13,082 | $ | 15,647 | $ | 13,948 | $ | 16,695 | ||||||
Sales and other inflows | 337 | 200 | 299 | 677 | 1,127 | |||||||||||
Redemptions/outflows | (800) | (471) | (825) | (1,631) | (3,294) | |||||||||||
Net flows | (463) | (271) | (526) | (954) | (2,167) | |||||||||||
Market value change | 656 | 1,407 | (312) | 1,417 | 281 | |||||||||||
Total Hexavest managed assets – end of period | $ | 14,411 | $ | 14,218 | $ | 14,809 | $ | 14,411 | $ | 14,809 | ||||||
(1) | Managed assets and flows of Eaton Vance-sponsored pooled investment vehicles for which Hexavest is adviser or sub-adviser. Eaton Vance | |||||||||||||||
receives management revenue (and in some cases also distribution revenue) on these assets, which are included in the Eaton Vance consolidated | ||||||||||||||||
results in Attachments 5 through 9. | ||||||||||||||||
(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 through 9. | ||||||||||||||||
(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 through 9. | ||||||||||||||||
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-31-2016-300314697.html
SOURCE Eaton Vance Corp.
