EATON VANCE CORP - FORM 8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 22, 2012

EATON VANCE CORP.

(Exact name of registrant as specified in its charter)

Maryland

1 - 8100

04-2718215

(State or other jurisdiction

(Commission File Number)

(IRS Employer Identification No.)

of incorporation)

Two International Place, Boston, Massachusetts

02110

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (617) 482-8260

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

(17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

(17 CFR 240.13e-4(c))

INFORMATION INCLUDED IN THE REPORT

Item 2.02.

Results of Operations and Financial Condition

Registrant has reported its results of operations for the three and nine months ended July 31, 2012, as described in Registrant’s news release dated August 22, 2012, a copy of which is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

Item 9.01.

Financial Statements and Exhibits

Exhibit No.

Document

99.1

Press release issued by the Registrant dated August 22, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

EATON VANCE CORP.

(Registrant)

Date:

August 22, 2012

/s/ Laurie G. Hylton

Laurie G. Hylton, Chief Financial Officer &

Chief Accounting Officer

EXHIBIT INDEX

Each exhibit is listed in this index according to the number assigned to it in the exhibit table set forth in Item 601 of Regulation S-K. The following exhibit is filed as part of this Report:

Exhibit No.

Description

99.1

Copy of Registrant's news release dated August 22, 2012.

Exhibit 99.1

[evc8k_8k002.gif]

News Release

Contacts: Laurie G. Hylton 617.672.8527

Daniel C. Cataldo 617.672.8952

Eaton Vance Corp.

Report for the Three and Nine Month Periods Ended July 31, 2012

Boston, MA, August 22, 2012 – Eaton Vance Corp. (NYSE: EV) today reported adjusted earnings per diluted share⁽¹⁾ of $0.43 for the third quarter of fiscal 2012 compared to adjusted earnings per diluted share of $0.45 in the second quarter of fiscal 2012 and $0.55 in the third quarter of fiscal 2011.

As determined under U.S. generally accepted accounting principles (“GAAP”), the Company earned $0.43 per diluted share in the third quarter of fiscal 2012, $0.44 in the second quarter of fiscal 2012 and $0.55 in the third quarter of fiscal 2011. Adjusted earnings differed from GAAP earnings in the second quarter of fiscal 2012 due to adjustments in connection with increases in the estimated redemption value of non-controlling interests in affiliates redeemable at other than fair value, which reduced GAAP earnings by $0.01 per diluted share.

Adjusted earnings per diluted share were $1.35 in the nine months ended July 31, 2012 compared to $1.52 in the nine months ended July 31, 2011. The Company’s GAAP earnings per diluted share were $1.27 and $1.35, respectively, for the compared periods. The Company’s adjusted and GAAP earnings per diluted share were increased $0.01 and $0.03 in the first nine months of fiscal 2012 and 2011, respectively, by gains related to the sale of the Company’s equity interest in Lloyd George Management (BVI) Limited in the second quarter of fiscal 2011.

Net outflows of $1.4 billion from long-term funds and separate accounts in the third quarter of fiscal 2012 compare to net inflows of $0.6 billion and $1.9 billion in the second quarter of fiscal 2012 and the third quarter of fiscal 2011, respectively. Net outflows from Eaton Vance large-cap value mandates totaled $3.8 billion in the third quarter of fiscal 2012, more than offsetting the $2.4 billion of net inflows into other long-term strategies in the period.

On August 6, 2012, the Company completed its purchase of a 49 percent interest in Hexavest Inc., a Quebec corporation providing discretionary management of equity and tactical asset allocation strategies to institutions in Canada, the United States, Europe and the Asia Pacific region using a predominantly top-down investment style. As of the close of the transaction, Hexavest managed $11.0 billion of client assets invested primarily in global and global ex-U.S. equity mandates.

“Accelerating outflows from our large-cap value strategy caused net flows to turn negative in the third quarter of fiscal 2012,” said Thomas E. Faust Jr., Chairman and Chief Executive Officer. “Improving large-cap value performance and a robust pipeline of new institutional and sub-advisory opportunities give reason for optimism regarding flow trends in the coming months.”

______________________

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

Assets under management were $192.9 billion on July 31, 2012, a decrease of 2 percent from the $197.5 billion of managed assets on April 30, 2012 and down 3 percent from managed assets of $199.0 billion on July 31, 2011. Assets under management on July 31, 2012 included $110.3 billion in long-term funds, $40.3 billion in institutional separate accounts, $14.7 billion in high-net-worth separate accounts, $27.4 billion in retail managed accounts and $0.2 billion in cash management fund assets. Average assets under management were $192.8 billion in the third quarter of fiscal 2012, down 1 percent from $195.6 billion in the second quarter of fiscal 2012 and down 4 percent from $201.2 billion in the third quarter of fiscal 2011. The sequential decrease in ending assets under management in the third quarter of fiscal 2012 primarily reflects long-term net outflows of $1.4 billion and market price declines of $3.1 billion.

As shown in Table 2 (Attachment 6), gross sales and other inflows were $10.9 billion in the third quarter of fiscal 2012, down 17 percent from $13.2 billion in the second quarter of fiscal 2012 and down 20 percent from $13.7 billion in the third quarter of fiscal 2011. Gross redemptions and other outflows were $12.4 billion in the third quarter of fiscal 2012, down 2 percent from $12.7 billion in the second quarter of fiscal 2012 and up 5 percent from $11.8 billion in the third quarter of fiscal 2011.

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


Financial Highlights

		Three Months Ended
		(in thousands, except per share figures)

		July 31,		April 30,		July 31,
		2012		2012		2011

Revenue		$	298,771	$	304,770	$	327,056
Expenses			203,755		205,959		211,629
Operating income			95,016		98,811		115,427

Operating margin			32%		32%		35%

Non-operating income (expense)			1,875		(855)		(3,365)
Income taxes			(34,379)		(35,164)		(43,320)
Equity in net income (loss) of affiliates, net of tax			175		(22)		194
Net income			62,687		62,770		68,936
Net income attributable to non-controlling
	and other beneficial interests		(12,481)		(9,900)		(868)
Net income attributable to
	Eaton Vance Corp. shareholders	$	50,206	$	52,870	$	68,068
Adjusted net income attributable to Eaton
	Vance Corp. shareholders⁽¹⁾	$	51,002	$	53,967	$	68,306

Earnings per diluted share		$	0.43	$	0.44	$	0.55

Adjusted earnings per diluted share⁽¹⁾		$	0.43	$	0.45	$	0.55

Third Quarter Fiscal 2012 vs. Second Quarter Fiscal 2012

Revenue in the third quarter of fiscal 2012 decreased 2 percent to $298.8 million from revenue of $304.8 million in the second quarter of fiscal 2012. Investment advisory and administrative fees were down 2 percent in the third quarter of fiscal 2012 compared to the second quarter of fiscal 2012, primarily due to a 1 percent decrease in average assets under management. Distribution and service fees revenues decreased 3 percent on a combined basis, reflecting a declining share of managed assets in fund share classes that are subject to such fees.

Expenses decreased 1 percent to $203.8 million in the third quarter of fiscal 2012 from $206.0 million in the second quarter of fiscal 2012, reflecting decreases in compensation, declines in certain distribution expenses and reduced amortization of deferred sales commissions, offset by increases in fund expenses and other expenses. The decrease in compensation expense primarily reflects decreases in sales- and operating income-based incentives, as well as lower severance expense. Gross sales and other inflows, which drive sales-based incentives, were down 17 percent in the third quarter of fiscal 2012 compared to the second quarter of fiscal 2012. Pre-bonus adjusted operating income, which drives operating income-based incentives, was down 4 percent for the same period. The decrease in distribution expense reflects a decrease in intermediary marketing support payments to our distribution partners driven by a decrease in sales and managed assets, partly offset by increases in promotional expenses. The decrease in amortization of deferred sales commissions largely reflects changes in product mix away from fund share classes to which these expenses apply. Fund expenses increased 9 percent from the second quarter of 2012 due to higher subsidies on start-up funds and increased non-advisory expenses borne by the Company on funds for which we are paid an all-in fee. The 3 percent increase in other expenses reflects increases in spending related to travel and information technology to support the Company’s product and infrastructure initiatives.

Operating income was down 4 percent to $95.0 million in the third quarter of fiscal 2012 from $98.8 million in the second quarter of fiscal 2012.

Non-operating income (expense) contributed $1.9 million to income before taxes in the third quarter of fiscal 2012, compared to a reduction of $0.9 million in the second quarter of fiscal 2012. The improved non-operating income (expense) is primarily attributable to a $4.0 million increase in gains and other investment income recognized by the Company’s consolidated collateralized loan obligation (“CLO”) entity, offset by a $0.9 million decline in gains and other investment income earned on 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 35.5 percent in the third quarter of fiscal 2012. Excluding the impact of other income (expense) associated with the Company’s consolidated CLO entity borne by other beneficial interest holders, the Company’s effective tax rate was approximately 38.2 percent for the quarter.

Net income attributable to non-controlling and other beneficial interests totaled $12.5 million in the third quarter of fiscal 2012 and $9.9 million in the second quarter of fiscal 2012. As shown in Attachment 3, the increase can be primarily attributed to an improvement in the financial performance of the Company’s consolidated CLO entity. Included in net income attributable to non-controlling and other beneficial interests in the second quarter of fiscal 2012 were $1.1 million of non-controlling interest value adjustments that related primarily to the profit growth of our subsidiary Parametric Risk Advisors based on an April 30 measurement date.

Third Quarter Fiscal 2012 vs. Third Quarter Fiscal 2011

Revenue in the third quarter of fiscal 2012 decreased 9 percent to $298.8 million from revenue of $327.1 million in the third quarter of fiscal 2011. Investment advisory and administrative fees were down 7 percent due to a 4 percent decrease in average assets under management and modestly lower average effective fee rates. Distribution and service fees were, on a combined basis, down 17 percent, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.

Expenses decreased 4 percent to $203.8 million in the third quarter of fiscal 2012 from $211.6 million in the third quarter of fiscal 2011, reflecting lower distribution and service fees, reduced amortization of deferred sales commissions and lower fund expenses, offset by an increase in other expenses. The decreases in distribution and service fee expenses and amortization of deferred sales commissions largely reflect changes in product mix away from fund share classes to which these expenses apply. The decrease in fund-related expenses can be attributed primarily to

lower sub-advisory expenses. The increase in other expenses is attributable primarily to higher spending for travel and other professional services. Compensation expense was substantially unchanged year-over-year, as decreases in sales- and operating income-based incentives were offset by higher employee headcount and increased salaries and stock-based compensation. Gross sales and other inflows, which drive sales-based incentives, were down 20 percent in the third quarter of fiscal 2012 compared to the third quarter of fiscal 2011, while pre-bonus adjusted operating income, which drives operating-income based incentives, was down 17 percent over the same period.

Operating income was down 18 percent to $95.0 million in the third quarter of fiscal 2012 from $115.4 million in the third quarter of fiscal 2011.

Non-operating income (expense) contributed $1.9 million to income before taxes in the third quarter of fiscal 2012 compared to a reduction of $3.4 million in the third quarter of fiscal 2011. The improved non-operating income (expense) reflects an $11.4 million increase in gains and other investment income recognized by the Company’s consolidated CLO entity, offset by a $5.7 million decrease in gains and other investment income earned on the Company’s investments in sponsored products. The Company’s gains and other investment income in the third quarter of fiscal 2011 included a $1.9 million gain recognized upon the sale of the Company’s equity interest in a non-consolidated CLO entity.

Net income attributable to non-controlling and other beneficial interests totaled $12.5 million in the third quarter of fiscal 2012 and $0.9 million in the third quarter of fiscal 2011. As shown in Attachment 3, the change can be primarily attributed to an improvement in the financial performance of the Company’s consolidated CLO entity.

Balance Sheet Information

Cash and cash equivalents totaled $600.2 million on July 31, 2012, with no outstanding borrowings against the Company’s $300.0 million credit facility. On August 6, 2012, the Company paid $192.7 million to acquire its 49 percent equity interest in Hexavest Inc., sourced from cash on hand. During the first nine months of fiscal 2012, the Company used $76.6 million to repurchase and retire approximately 3.0 million shares of its Non-Voting Common Stock under its repurchase authorization. Approximately 5.0 million shares of the current 8.0 million share repurchase authorization remains unused.

Conference Call Information

Eaton Vance Corp. will host a conference call and webcast at 11:00 AM EDT today to discuss the financial results for the three and nine month periods ended July 31, 2012. To participate in the conference call, please call 877-407-0778 (domestic) or 201-689-8565 (international) and refer to “Eaton Vance Corp. Third Quarter Earnings.” A webcast of the conference call can also be accessed via Eaton Vance’s website, www.eatonvance.com.

A replay of the call will be available for one week by calling 877-660-6853 (domestic) or 201-612-7415 (international) or by accessing Eaton Vance’s website, www.eatonvance.com. Listeners to the telephone replay must enter the account number 286 and the confirmation code 398870.

About Eaton Vance Corp.

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

Forward-Looking Statements

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


																Attachment 1
Eaton Vance Corp.
Summary of Results of Operations
(in thousands, except per share figures)
(unaudited)


			Three Months Ended										Nine Months Ended
									% Change		% Change
			July 31,		April 30,		July 31,		Q3 2012 to		Q3 2012 to		July 31,		July 31,		%
			2012		2012		2011		Q2 2012		Q3 2011		2012		2011		Change
Revenue:

	Investment advisory and administrative fees		$	244,655	$	248,888	$	262,067	(2)	%	(7)	%	$	732,995	$	756,471	(3)	%
	Distribution and underwriter fees			22,066		22,551		26,432	(2)		(17)			67,132		79,900	(16)
	Service fees			30,760		32,065		37,426	(4)		(18)			95,124		111,249	(14)
	Other revenue			1,290		1,266		1,131	2		14			3,896		3,663	6
		Total revenue		298,771		304,770		327,056	(2)		(9)			899,147		951,283	(5)
Expenses:

	Compensation and related costs			94,700		97,566		94,713	(3)		-			288,949		288,920	-
	Distribution expense			32,670		32,960		33,733	(1)		(3)			97,958		100,087	(2)
	Service fee expense			28,165		28,088		32,222	-		(13)			84,926		94,331	(10)
	Amortization of deferred sales commissions			4,593		5,533		8,503	(17)		(46)			15,946		28,496	(44)
	Fund expenses			7,205		6,590		8,099	9		(11)			20,446		17,660	16
	Other expenses			36,422		35,222		34,359	3		6			104,275		100,205	4
		Total expenses		203,755		205,959		211,629	(1)		(4)			612,500		629,699	(3)
Operating income				95,016		98,811		115,427	(4)		(18)			286,647		321,584	(11)
Non-operating income (expense):
	Gains and other investment income, net			1,927		2,796		7,594	(31)		(75)			12,900		21,406	(40)
	Interest expense			(8,525)		(8,412)		(8,414)	1		1			(25,350)		(25,239)	-
	Other income (expense) of consolidated
		CLO entity:
		Gains (losses) and other investment income, net		12,872		8,895		1,454	45		785			32,047		(9,695)	NM
		Interest expense		(4,399)		(4,134)		(3,999)	6		10			(12,844)		(9,546)	35
		Total non-operating income (expense)		1,875		(855)		(3,365)	NM		NM			6,753		(23,074)	NM

Income before income taxes and equity
in net income (loss) of affiliates				96,891		97,956		112,062	(1)		(14)			293,400		298,510	(2)
Income taxes				(34,379)		(35,164)		(43,320)	(2)		(21)			(104,730)		(119,179)	(12)
Equity in net income (loss) of affiliates, net of tax				175		(22)		194	NM		(10)			1,657		2,655	(38)
Net income				62,687		62,770		68,936	-		(9)			190,327		181,986	5
Net income attributable to non-controlling
and other beneficial interests				(12,481)		(9,900)		(868)	26		NM			(39,980)		(13,904)	188
Net income attributable to
Eaton Vance Corp. Shareholders			$	50,206	$	52,870	$	68,068	(5)		(26)		$	150,347	$	168,082	(11)

Earnings per share :
	Basic		$	0.44	$	0.46	$	0.58	(4)		(24)		$	1.30	$	1.42	(8)
	Diluted		$	0.43	$	0.44	$	0.55	(2)		(22)		$	1.27	$	1.35	(6)

Weighted average shares outstanding:
	Basic			112,110		112,418		115,574	-		(3)			112,354		116,191	(3)
	Diluted			114,591		115,881		120,543	(1)		(5)			115,031		121,566	(5)

Dividends declared per share			$	0.19	$	0.19	$	0.18	-		6		$	0.57	$	0.54	6



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


		Three Months Ended						Nine Months Ended
		July 31,		April 30,		July 31,		July 31,		July 31,
(in thousands, except per share figures)		2012		2012		2011		2012		2011

	Net income attributable to Eaton Vance
	Corp. shareholders	$	50,206	$	52,870	$	68,068	$	150,347	$	168,082

	Non-controlling interest value adjustments		796		1,097		238		9,996		21,310


	Adjusted net income attributable to Eaton
	Vance Corp. shareholders	$	51,002	$	53,967	$	68,306	$	160,343	$	189,392


	Earnings per diluted share	$	0.43	$	0.44	$	0.55	$	1.27	$	1.35

	Non-controlling interest value adjustments		-		0.01		-		0.08		0.17


	Adjusted earnings per diluted share	$	0.43	$	0.45	$	0.55	$	1.35	$	1.52



										Attachment 3
Eaton Vance Corp.
Reconciliation of net income attributable
to non-controlling and other beneficial interests
(unaudited)


			Three Months Ended						Nine Months Ended
			July 31,		April 30,		July 31,		July 31,		July 31,
(in thousands)			2012		2012		2011		2012		2011

	Consolidated funds		$	(839)	$	(1,182)	$	(970)	$	(3,167)	$	(5,629)

	Majority-owned subsidiaries			(3,354)		(3,751)		(3,158)		(10,465)		(9,094)

	Consolidated CLO entity			(7,492)		(3,870)		3,498		(16,352)		22,129

	Non-controlling interest value adjustments			(796)		(1,097)		(238)		(9,996)		(21,310)

	Net income attributable to non-controlling
		interests and other beneficial interests	$	(12,481)	$	(9,900)	$	(868)	$	(39,980)	$	(13,904)


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


		July 31,		October 31,
		2012		2011
Assets


Cash and cash equivalents	$	600,182	$	510,913
Investment advisory fees and other receivables		127,303		130,525
Investments		285,986		287,735
Assets of consolidated collateralized loan obligation ("CLO") entity:
Cash and cash equivalents		33,380		16,521
Bank loans and other investments		458,392		462,586
Other assets		1,150		2,715
Deferred sales commissions		20,370		27,884
Deferred income taxes		47,858		41,343
Equipment and leasehold improvements, net		57,732		67,227
Intangible assets, net		61,227		67,224
Goodwill		154,636		142,302
Other assets		75,562		74,325
Total assets	$	1,923,778	$	1,831,300

Liabilities, Temporary Equity and Permanent Equity

Liabilities:

Accrued compensation	$	110,070	$	137,431
Accounts payable and accrued expenses		57,143		51,333
Dividend payable		21,875		21,959
Debt		500,000		500,000
Liabilities of consolidated CLO entity:
Senior and subordinated note obligations		477,096		477,699
Other liabilities		822		5,193
Other liabilities		91,077		75,557
Total liabilities		1,258,083		1,269,172
Commitments and contingencies

Temporary Equity:
Redeemable non-controlling interests		113,080		100,824
Total temporary equity		113,080		100,824

Permanent Equity:
Voting common stock, par value $0.00390625 per share:
Authorized, 1,280,000 shares
Issued, 413,167 and 399,240 shares, respectively		2		2
Non-voting common stock, par value $0.00390625 per share:
Authorized, 190,720,000 shares
Issued, 114,776,913 and 115,223,827 shares, respectively		448		450
Notes receivable from stock option exercises		(3,888)		(4,441)
Accumulated other comprehensive income		2,630		1,340
Appropriated retained earnings (deficit)		12,485		(3,867)
Retained earnings		540,047		466,931
Total Eaton Vance Corp. shareholders' equity		551,724		460,415
Non-redeemable non-controlling interests		891		889
Total permanent equity		552,615		461,304
Total liabilities, temporary equity and permanent equity	$	1,923,778	$	1,831,300


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

		Three Months Ended						Nine Months Ended
		July 31,		April 30,		July 31,		July 31,		July 31,
		2012		2012		2011		2012		2011
Equity assets - beginning of period⁽²⁾		$	114,903	$	110,834	$	122,740	$	108,859	$	107,500
	Sales and other inflows		4,604		6,817		7,984		17,735		23,829
	Redemptions/outflows		(7,656)		(7,897)		(7,564)		(23,234)		(21,853)
	Net flows		(3,052)		(1,080)		420		(5,499)		1,976
	Assets acquired		-		-		-		-		352
	Exchanges		(19)		(6)		(25)		(23)		70
	Market value change		(3,237)		5,155		(6,080)		5,258		7,157
Equity assets - end of period		$	108,595	$	114,903	$	117,055	$	108,595	$	117,055

Fixed income assets - beginning of period			46,891		45,514		43,066		43,708		46,119
	Sales and other inflows		2,886		3,626		2,404		9,139		7,909
	Redemptions/outflows		(1,973)		(2,276)		(2,223)		(6,702)		(9,270)
	Net flows		913		1,350		181		2,437		(1,361)
	Exchanges		30		-		7		70		(278)
	Market value change		364		27		559		1,983		(667)
Fixed income assets - end of period		$	48,198	$	46,891	$	43,813	$	48,198	$	43,813

Floating-rate income assets - beginning
	of period		24,847		24,376		24,224		24,322		20,003
	Sales and other inflows		2,091		1,662		2,207		5,212		7,767
	Redemptions/outflows		(1,535)		(1,451)		(977)		(4,274)		(3,002)
	Net flows		556		211		1,230		938		4,765
	Exchanges		5		27		2		24		182
	Market value change		(163)		233		130		(39)		636
Floating-rate income assets - end of period		$	25,245	$	24,847	$	25,586	$	25,245	$	25,586

Alternative assets - beginning of period			10,506		10,449		11,860		10,646		10,482
	Sales and other inflows		1,342		1,121		1,068		3,558		4,320
	Redemptions/outflows		(1,201)		(1,035)		(1,044)		(3,428)		(3,077)
	Net flows		141		86		24		130		1,243
	Exchanges		(13)		(23)		(21)		(84)		(76)
	Market value change		(34)		(6)		(102)		(92)		112
Alternative assets - end of period		$	10,600	$	10,506	$	11,761	$	10,600	$	11,761

Long-term assets - beginning of period			197,147		191,173		201,890		187,535		184,104
	Sales and other inflows		10,923		13,226		13,663		35,644		43,825
	Redemptions/outflows		(12,365)		(12,659)		(11,808)		(37,638)		(37,202)
	Net flows		(1,442)		567		1,855		(1,994)		6,623
	Assets acquired		-		-		-		-		352
	Exchanges		3		(2)		(37)		(13)		(102)
	Market value change		(3,070)		5,409		(5,493)		7,110		7,238
Total long-term assets - end of period		$	192,638	$	197,147	$	198,215	$	192,638	$	198,215

Cash management fund assets
	end of period		220		340		815		220		815
Total assets under management -
	end of period	$	192,858	$	197,487	$	199,030	$	192,858	$	199,030

⁽¹⁾ Includes funds and separate accounts.
⁽²⁾ Includes balanced accounts holding income securities.


									Attachment 6
Eaton Vance Corp.
Table 2
Net Flows by Investment Vehicle
(in millions) (unaudited)
		Three Months Ended						Nine Months Ended
		July 31,		April 30,		July 31,		July 31,		July 31,
		2012		2012		2011		2012		2011
Long-term fund assets -
	beginning of period	$	114,029	$	112,664	$	122,886	$	111,705	$	113,978
	Sales and other inflows		6,266		6,648		7,293		19,819		26,840
	Redemptions/outflows		(8,554)		(7,818)		(7,225)		(24,483)		(23,192)
	Net flows		(2,288)		(1,170)		68		(4,664)		3,648
	Exchanges		3		(2)		(37)		(13)		(105)
	Market value change		(1,487)		2,537		(2,941)		3,229		2,455
Long-term fund assets - end of period		$	110,257	$	114,029	$	119,976	$	110,257	$	119,976

Institutional separate account assets -
	beginning of period		40,883		38,726		38,264		38,003		34,593
	Sales and other inflows		2,262		3,261		4,336		7,347		9,396
	Redemptions/outflows		(1,970)		(2,794)		(2,522)		(6,979)		(7,379)
	Net flows		292		467		1,814		368		2,017
	Exchanges		-		40		-		11		(19)
	Market value change		(890)		1,650		(1,086)		1,903		2,401
Institutional separate account assets -
	end of period	$	40,285	$	40,883	$	38,992	$	40,285	$	38,992

High-net-worth separate account assets -
	beginning of period		14,704		13,255		14,249		13,256		11,883
	Sales and other inflows		752		1,338		529		3,110		2,250
	Redemptions/outflows		(540)		(534)		(552)		(1,626)		(1,925)
	Net flows		212		804		(23)		1,484		325
	Assets acquired		-		-		-		-		352
	Exchanges		-		(42)		7		(999)		2
	Market value change		(234)		687		(645)		941		1,026
High-net-worth separate account assets -
	end of period	$	14,682	$	14,704	$	13,588	$	14,682	$	13,588

Retail managed account assets -
	beginning of period		27,531		26,528		26,491		24,571		23,650
	Sales and other inflows		1,643		1,979		1,505		5,368		5,339
	Redemptions/outflows		(1,301)		(1,513)		(1,509)		(4,550)		(4,706)
	Net flows		342		466		(4)		818		633
	Exchanges		-		2		(7)		988		20
	Market value change		(459)		535		(821)		1,037		1,356
Retail managed account assets - end of period		$	27,414	$	27,531	$	25,659	$	27,414	$	25,659

Total long-term assets -
	beginning of period		197,147		191,173		201,890		187,535		184,104
	Sales and other inflows		10,923		13,226		13,663		35,644		43,825
	Redemptions/outflows		(12,365)		(12,659)		(11,808)		(37,638)		(37,202)
	Net flows		(1,442)		567		1,855		(1,994)		6,623
	Assets acquired		-		-		-		-		352
	Exchanges		3		(2)		(37)		(13)		(102)
	Market value change		(3,070)		5,409		(5,493)		7,110		7,238
Total long-term assets - end of period		$	192,638	$	197,147	$	198,215	$	192,638	$	198,215

Cash management fund assets
	end of period		220		340		815		220		815

Total assets under management -
	end of period	$	192,858	$	197,487	$	199,030	$	192,858	$	199,030


								Attachment 7
Eaton Vance Corp.
Table 3
Assets under Management
by Investment Mandate⁽¹⁾
(in millions) (unaudited)

	July 31,		April 30,		%	July 31,			%
	2012		2012		Change	2011			Change
Equity ⁽²⁾	$	108,595	$	114,903	-5%	$	117,055		-7%
Fixed income		48,198		46,891	3%		43,813		10%
Floating-rate income		25,245		24,847	2%		25,586		-1%
Alternative		10,600		10,506	1%		11,761		-10%
Cash management		220		340	-35%		815		-73%
Total	$	192,858	$	197,487	-2%	$	199,030		-3%

⁽¹⁾ Includes funds and separate accounts.
⁽²⁾ Includes balanced accounts holding income securities.

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