Attached files
| file | filename |
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| 8-K - EATON VANCE CORP 8-K DTD 8-20-2014 - EATON VANCE CORP | evc8k_8k.htm |
![[ex99z1002.gif]](ex99z1002.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, 2014
Boston, MA, August 20, 2014 – Eaton Vance Corp. (NYSE: EV) today reported adjusted earnings per diluted share(1) of $0.63 for the third quarter of fiscal 2014, an increase of 21 percent over the $0.52 of adjusted earnings per diluted share in the third quarter of fiscal 2013 and an increase of 7 percent over the $0.59 of adjusted earnings per diluted share in the second quarter of fiscal 2014. Net income and gains (losses) on seed capital investments contributed $0.01 in the third quarter of fiscal 2014, compared to -$0.02 and $0.01 in the third quarter of fiscal 2013 and second quarter of fiscal 2014, respectively.
As determined under generally accepted accounting principles in the United States of America (“GAAP”), the Company earned $0.63 in the third quarter of fiscal 2014, $0.18 in the third quarter of fiscal 2013 and $0.59 in the second quarter of fiscal 2014. In the third quarter of fiscal 2013, adjusted earnings differed from GAAP earnings to reflect $0.28 per diluted share of costs associated with retiring $250 million of the Company’s 6.5 percent 2017 Senior Notes (“2017 Senior Notes”), $0.05 per diluted share of charges in connection with settling a state tax matter and $0.01 per diluted share of closed-end structuring fees incurred in that quarter.
Adjusted earnings per diluted share were $1.80 in the nine months ended July 31, 2014 compared to $1.53 in the nine months ended July 31, 2013, an increase of 18 percent. The Company’s GAAP earnings per diluted share were $1.78 and $1.07, respectively, for these periods.
Net outflows of $2.0 billion from long-term funds and separate accounts in the third quarter of fiscal 2014 compare to net inflows of $8.8 billion in the third quarter of fiscal 2013 and net outflows of $0.9 billion in the second quarter of fiscal 2014.
“Eaton Vance again achieved record earnings in the third quarter of fiscal 2014,” said Thomas Faust Jr., Chairman and Chief Executive Officer. “Although flows remain disappointing, continued development of emerging franchises and strong investment performance support improved organic growth in the coming quarters.”
Consolidated assets under management were $288.2 billion on July 31, 2014, an increase of 7 percent from the $268.8 billion of managed assets on July 31, 2013 and an increase of 1 percent from the $285.9 billion of managed assets on April 30, 2014. The increase in ending assets under management from July 31 of last year reflects market appreciation of $19.6 billion and net outflows of $0.2 billion. The sequential quarterly increase in ending assets under management reflects market price appreciation of $4.4 billion and net outflows of $2.0 billion.
Average consolidated assets under management were $289.3 billion in the third quarter of fiscal 2014, up 10 percent from $263.7 billion in the third quarter of fiscal 2013 and up 2 percent from $284.4 billion in the second quarter of fiscal 2014.
(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
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adjustments”), closed-end fund structuring fees 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.
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 $26.2 billion in the third quarter of fiscal 2014, down 7 percent from $28.0 billion in the third quarter of fiscal 2013 and up 15 percent from $22.8 billion in the second quarter of fiscal 2014. Gross redemptions and other outflows were $28.2 billion in the third quarter of fiscal 2014, up 47 percent from $19.2 billion in the third quarter of fiscal 2013 and up 19 percent from $23.7 billion in the second quarter of fiscal 2014.
As of July 31, 2014, 49 percent-owned affiliate Hexavest, Inc. (“Hexavest”) managed $17.0 billion of client assets, an increase of 8 percent from the $15.7 billion of managed assets on July 31, 2013 and substantially unchanged from the $17.1 billion of managed assets on April 30, 2014. Hexavest-managed funds and separate accounts had net outflows of $0.3 billion in the third quarter of fiscal 2014, net inflows of $0.5 billion in the third quarter of fiscal 2013 and net outflows of $0.1 billion in the second quarter of fiscal 2014. Attachment 9 summarizes assets under management and asset flow information for Hexavest. Other than Eaton Vance-sponsored funds for which Hexavest is advisor or sub-advisor, the managed assets and flows of Hexavest are not included in Eaton Vance consolidated totals.
Financial Highlights |
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| Three Months Ended | |||||
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| July 31, | April 30, | July 31, | |||
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| 2014 | 2014 | 2013 | |||
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Revenue | $ | 367,590 | $ | 354,061 | $ | 350,361 | |
Expenses |
| 236,412 |
| 228,758 |
| 231,511 | |
Operating income |
| 131,178 |
| 125,303 |
| 118,850 | |
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Operating margin |
| 35.7% |
| 35.4% |
| 33.9% | |
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Non-operating expense |
| (4,850) |
| (7,226) |
| (71,315) | |
Income taxes |
| (48,899) |
| (45,249) |
| (25,137) | |
Equity in net income of affiliates, net of tax |
| 3,840 |
| 5,219 |
| 2,652 | |
Net income |
| 81,269 |
| 78,047 |
| 25,050 | |
Net income attributable to non-controlling |
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| and other beneficial interests |
| (3,334) |
| (3,146) |
| (1,847) |
Net income attributable to |
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| Eaton Vance Corp. shareholders | $ | 77,935 | $ | 74,901 | $ | 23,203 |
Adjusted net income attributable to Eaton |
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| Vance Corp. shareholders(1) | $ | 77,876 | $ | 74,901 | $ | 66,513 |
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Earnings per diluted share | $ | 0.63 | $ | 0.59 | $ | 0.18 | |
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Adjusted earnings per diluted share(1) | $ | 0.63 | $ | 0.59 | $ | 0.52 | |
Third Quarter Fiscal 2014 vs. Third Quarter Fiscal 2013
In the third quarter of fiscal 2014, revenue increased 5 percent to $367.6 million from revenue of $350.4 million in the third quarter of fiscal 2013. Investment advisory and administrative fees were up 6 percent, reflecting a 10 percent increase in average consolidated assets under management and lower average effective fee rates. Performance fees contributed $0.9 million to investment advisory and administrative fees, unchanged from the third quarter of fiscal 2013. Distribution and service fee revenues were collectively down 3 percent, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.
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Operating expenses increased 2 percent to $236.4 million in the third quarter of fiscal 2014 from $231.5 million in the third quarter of fiscal 2013, reflecting increases in compensation, service fee expense, fund-related expenses and other operating expenses, offset by reduced amortization of deferred sales commissions. The increase in compensation expense reflects increases in stock-based compensation, higher employee headcount and increases in base salaries and benefits, offset by lower operating income-based bonus accruals and a decrease in sales-based incentives. The increase in service fee expense reflects an increase in average assets under management subject to service fee payments. The increase in fund-related expenses primarily reflects an increase in sub-advisory expenses for Company-sponsored funds managed by unaffiliated sub-advisors. Other expenses increased 4 percent, reflecting increases in travel and information technology expenses. The decrease in amortization of deferred sales commissions largely reflects decreases in Class B share and Class C share amortization. Distribution expense was flat year-over-year, reflecting the non-recurrence of $1.7 million in closed-end fund-related structuring fees paid in the third quarter of fiscal 2013, offset by an increase in intermediary marketing support payments.
Operating income was up 10 percent to $131.2 million in the third quarter of fiscal 2014 from $118.9 million in the third quarter of fiscal 2013. Operating margin improved to 35.7 percent in the third quarter of fiscal 2014 from 33.9 percent in the third quarter of fiscal 2013.
Non-operating expense totaled $4.9 million in the third quarter of fiscal 2014 compared to $71.3 million in the third quarter of fiscal 2013. The year-over-year change reflects $56.9 million in costs incurred on the retirement of $250 million of the Company’s 2017 Senior Notes in the third quarter of fiscal 2013, a $7.9 million positive change in gains (losses) and other investment income related to the Company’s investments in sponsored products, a decrease of $1.7 million in interest expense and a $0.9 million decline in income (expense) of the Company’s consolidated collateralized loan obligation (“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 38.7 percent in the third quarter of fiscal 2014. Excluding the impact of consolidated CLO entities’ income (expense) borne by other beneficial interest holders, the Company’s effective tax rate was 38.5 percent for the quarter. During the third quarter of fiscal 2013, the Company settled a multi-year state tax audit, the net impact of which was an increase to income tax expense of $6.7 million.
Equity in net income of affiliates increased to $3.8 million in the third quarter of fiscal 2014 from $2.7 million in the third quarter of fiscal 2013. 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. Equity in net income of affiliates in the third quarter of fiscal 2013 included $2.5 million of Company equity in the net income of Hexavest and $0.1 million of net income in a private equity partnership.
Net income attributable to non-controlling and other beneficial interests was $3.3 million in the third quarter of fiscal 2014 compared to $1.8 million in the third quarter of fiscal 2013. As shown in Attachment 3, net income attributable to non-controlling and other beneficial interests included non-controlling interest value adjustments relating to our majority-owned subsidiaries of -$0.1 million and $0.4 million in the third quarter of fiscal 2014 and 2013, respectively. The year-over-year change also reflects a decrease in the net income (loss) attributable to non-controlling interest holders of the Company’s consolidated CLO entities.
Third Quarter Fiscal 2014 vs. Second Quarter Fiscal 2014
In the third quarter of fiscal 2014, revenue increased 4 percent to $367.6 million from revenue of $354.1 million in the second quarter of fiscal 2014. Investment advisory and administrative fees were up 4 percent, reflecting a 2 percent increase in average consolidated assets under management and slightly higher average effective fee rates driven by an increase in the number of fee days in the quarter. Performance fees contributed $0.9 million and $1.0 million to investment
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advisory and administrative fees in the third and second quarters of fiscal 2014, respectively. Distribution and service fee revenues were up 3 percent in aggregate, reflecting an increase in managed assets in fund share classes that are subject to distribution and service fees.
Operating expenses increased 3 percent to $236.4 million in the third quarter of fiscal 2014 from $228.8 million in the second quarter of fiscal 2014, reflecting increases in compensation, distribution and service fee expenses, fund-related expenses and other operating expenses, offset by reduced 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, and an increase in stock-based compensation, offset by lower operating income-based bonus accruals. The increase in distribution and service fee expense reflects increased average assets under management subject to those fees. The increase in fund-related expenses can be attributed to an increase in expenses borne by the Company on funds for which it receives an all-in fee, as well as other fund-related expenses. Other expenses increased 4 percent, reflecting an increase in information technology expenses offset by a decrease in professional expenses. The decrease in amortization of deferred sales commissions reflects a decrease in Class C share amortization.
Operating income was up 5 percent to $131.2 million in the third quarter of fiscal 2014 from $125.3 million in the second quarter of fiscal 2014. Operating margin improved to 35.7 percent in the third quarter of fiscal 2014 from 35.4 percent in the second quarter of fiscal 2014.
Non-operating expense totaled $4.9 million in the third quarter of fiscal 2014 compared to $7.2 million in the second quarter of fiscal 2014, reflecting a $3.7 million positive change in gains (losses) and other investment income related to the Company’s investments in sponsored products.
Equity in net income of affiliates decreased to $3.8 million in the third quarter of fiscal 2014 from $5.2 million in the second quarter of fiscal 2014. Equity in net income of affiliates 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 in the third quarter of fiscal 2014. Equity in net income of affiliates included $2.6 million of Company equity in the net income of Hexavest, $2.2 million of gains (losses) and other income on the Company’s investments in sponsored funds and $0.4 million of net income in a private equity partnership in the second quarter of fiscal 2014.
Net income attributable to non-controlling and other beneficial interests was $3.3 million in the third quarter of fiscal 2014 and $3.1 million in the second quarter of fiscal 2014.
Weighted average diluted shares outstanding decreased 2.0 million shares, or 2 percent, in the third quarter of fiscal 2014 from the second quarter of fiscal 2014, primarily reflecting the impact of share repurchases. During the third quarter of fiscal 2014 the Company issued 0.5 million shares of restricted and unrestricted Non-Voting Common Stock in connection with granting incentive equity awards and the exercise of employee stock options. Over the same period, the Company used $92.6 million to repurchase and retire 2.5 million shares of its Non-Voting Common Stock.
Balance Sheet Information
Cash and cash equivalents totaled $362.0 million on July 31, 2014, with no outstanding borrowings against the Company’s $300 million credit facility. Included within investments is $186.8 million of short-term debt securities with maturities between 90 days and one year. During the first nine months of fiscal 2014, the Company used $227.9 million to repurchase and retire 6.0 million shares of its Non-Voting Common Stock under its repurchase authorizations. Of the current 8.0 million share repurchase authorization, approximately 7.2 million shares remain available.
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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 and nine months ended July 31, 2014. To participate in the conference call, please call 877-201-0168 (domestic) or 647-788-4901 (international) and refer to “Eaton Vance Corp. Third Fiscal Quarter Earnings.” Listeners to the conference call must enter the confirmation code 87504388. 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 87504388.
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.
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| Attachment 1 |
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Eaton Vance Corp. | |||||||||||||||||||
Summary of Results of Operations | |||||||||||||||||||
(in thousands, except per share figures) | |||||||||||||||||||
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| Three Months Ended |
| Nine Months Ended | ||||||||||||||
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| % | % |
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| Change | Change |
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| Q3 2014 | Q3 2014 |
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| July 31, | April 30, | July 31, | vs. | vs. |
| July 31, | July 31, | % | ||||||||
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| 2014 | 2014 | 2013 | Q2 2014 | Q3 2013 |
| 2014 | 2013 | Change | ||||||||
Revenue: |
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| Investment advisory and administrative fees | $ | 311,756 | $ | 300,136 | $ | 293,589 | 4 | % | 6 | % |
| $ | 916,605 | $ | 833,791 | 10 | % | |
| Distribution and underwriter fees |
| 21,548 |
| 21,212 |
| 22,681 | 2 |
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| 64,381 |
| 67,597 | (5) |
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| Service fees |
| 31,977 |
| 30,829 |
| 32,259 | 4 |
| (1) |
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| 95,097 |
| 94,521 | 1 |
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| Other revenue |
| 2,309 |
| 1,884 |
| 1,832 | 23 |
| 26 |
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| 5,829 |
| 4,661 | 25 |
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| Total revenue |
| 367,590 |
| 354,061 |
| 350,361 | 4 |
| 5 |
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| 1,081,912 |
| 1,000,570 | 8 |
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Expenses: |
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| Compensation and related costs |
| 117,632 |
| 114,656 |
| 115,379 | 3 |
| 2 |
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| 351,110 |
| 334,220 | 5 |
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| Distribution expense |
| 35,591 |
| 34,785 |
| 35,452 | 2 |
| - |
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| 105,924 |
| 104,645 | 1 |
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| Service fee expense |
| 29,780 |
| 28,281 |
| 29,013 | 5 |
| 3 |
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| 87,266 |
| 86,488 | 1 |
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| Amortization of deferred sales commissions |
| 4,084 |
| 4,354 |
| 4,983 | (6) |
| (18) |
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| 13,408 |
| 14,518 | (8) |
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| Fund-related expenses |
| 9,380 |
| 8,455 |
| 8,230 | 11 |
| 14 |
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| 26,288 |
| 23,728 | 11 |
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| Other expenses |
| 39,945 |
| 38,227 |
| 38,454 | 4 |
| 4 |
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| 117,235 |
| 109,371 | 7 |
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| Total expenses |
| 236,412 |
| 228,758 |
| 231,511 | 3 |
| 2 |
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| 701,231 |
| 672,970 | 4 |
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Operating income |
| 131,178 |
| 125,303 |
| 118,850 | 5 |
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| 380,681 |
| 327,600 | 16 |
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Non-operating income (expense): |
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| Gains (losses) and other investment |
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| income, net |
| 2,917 |
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| (8,027) | NM |
| NM |
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| 2,592 |
| 2,223 | 17 |
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| Interest expense |
| (7,443) |
| (7,404) |
| (9,167) | 1 |
| (19) |
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| (22,247) |
| (26,309) | (15) |
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| Loss on extinguishment of debt |
| - |
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| (52,886) | - |
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| (52,886) | NM |
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| Other income (expense) of consolidated |
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| Gains and other investment income, net | 1,434 |
| 5,104 |
| 1,704 | (72) |
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| 15,247 |
| 7,881 | 93 |
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| Interest and other expense |
| (1,758) |
| (4,188) |
| (2,939) | (58) |
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| (13,781) |
| (10,211) | 35 |
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| Total non-operating expense |
| (4,850) |
| (7,226) |
| (71,315) | (33) |
| (93) |
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| (18,189) |
| (79,302) | (77) |
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Income before income taxes and equity |
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in net income of affiliates | 126,328 |
| 118,077 |
| 47,535 | 7 |
| 166 |
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| 362,492 |
| 248,298 | 46 |
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Income taxes |
| (48,899) |
| (45,249) |
| (25,137) | 8 |
| 95 |
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| (138,790) |
| (99,270) | 40 |
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Equity in net income of affiliates, net of tax |
| 3,840 |
| 5,219 |
| 2,652 | (26) |
| 45 |
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| 12,344 |
| 9,269 | 33 |
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Net income |
| 81,269 |
| 78,047 |
| 25,050 | 4 |
| 224 |
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| 236,046 |
| 158,297 | 49 |
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Net income attributable to non-controlling |
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and other beneficial interests |
| (3,334) |
| (3,146) |
| (1,847) | 6 |
| 81 |
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| (11,852) |
| (21,608) | (45) |
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Net income attributable to |
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Eaton Vance Corp. Shareholders | $ | 77,935 | $ | 74,901 | $ | 23,203 | 4 |
| 236 |
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| $ | 224,194 | $ | 136,689 | 64 |
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Earnings per share: |
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| Basic | $ | 0.66 | $ | 0.62 | $ | 0.19 | 6 |
| 247 |
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| $ | 1.86 | $ | 1.12 | 66 |
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| Diluted | $ | 0.63 | $ | 0.59 | $ | 0.18 | 7 |
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| $ | 1.78 | $ | 1.07 | 66 |
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Weighted average shares outstanding: |
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| Basic |
| 116,145 |
| 118,103 |
| 117,594 | (2) |
| (1) |
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| 117,248 |
| 116,399 | 1 |
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| Diluted |
| 121,013 |
| 123,021 |
| 123,872 | (2) |
| (2) |
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| 122,550 |
| 122,155 | - |
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Dividends declared per share: |
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| Regular | $ | 0.22 | $ | 0.22 | $ | 0.20 | - |
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| $ | 0.66 | $ | 0.60 | 10 |
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| Special | $ | - | $ | - | $ | - | - |
| - |
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| $ | - | $ | 1.00 | NM |
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| Attachment 2 | |||||
Eaton Vance Corp. |
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Reconciliation of net income attributable to Eaton Vance Corp. |
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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 2014 vs. | Q3 2014 vs. |
| July 31, | July 31, | % | |||||||||
(in thousands, except per share figures) | 2014 | 2014 | 2013 | Q2 2014 | Q3 2013 |
| 2014 | 2013 | Change | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Eaton |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Vance Corp. shareholders | $ | 77,935 | $ | 74,901 | $ | 23,203 | 4 | % | 236 | % |
| $ | 224,194 | $ | 136,689 | 64 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-controlling interest value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| adjustments |
| (59) |
| - |
| 405 | NM |
| NM |
|
|
| 2,330 |
| 11,718 | (80) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Closed-end fund structuring fees, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| net of tax |
| - |
| - |
| 1,043 | - |
| NM |
|
|
| - |
| 2,720 | NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loss on extinguishment of debt, net of tax* |
| - |
| - |
| 35,171 | - |
| NM |
|
|
| - |
| 35,171 | NM |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Settlement of state tax audit |
| - |
| - |
| 6,691 | - |
| NM |
|
|
| - |
| 6,691 | NM |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted net income attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Eaton Vance Corp. shareholders | $ | 77,876 | $ | 74,901 | $ | 66,513 | 4 |
| 17 |
|
| $ | 226,524 | $ | 192,989 | 17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings per diluted share | $ | 0.63 | $ | 0.59 | $ | 0.18 | 7 |
| 250 |
|
| $ | 1.78 | $ | 1.07 | 66 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-controlling interest value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| adjustments |
| - |
| - |
| - | - |
| - |
|
|
| 0.02 |
| 0.09 | (78) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Closed-end fund structuring fees, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| net of tax |
| - |
| - |
| 0.01 | - |
| NM |
|
|
| - |
| 0.02 | NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loss on extinguishment of debt, net of tax |
| - |
| - |
| 0.28 | - |
| NM |
|
|
| - |
| 0.28 | NM |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Settlement of state tax audit |
| - |
| - |
| 0.05 | - |
| NM |
|
|
| - |
| 0.05 | NM |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Special dividend adjustment |
| - |
| - |
| - | - |
| - |
|
|
| - |
| 0.02 | NM |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per diluted share | $ | 0.63 | $ | 0.59 | $ | 0.52 | 7 |
| 21 |
|
| $ | 1.80 | $ | 1.53 | 18 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * The loss on extinguishment of debt is comprised of a $52.9 million loss on extinguishment of debt, a $3.1 million loss on a reverse treasury lock entered into in |
| ||||||||||||||||
| conjunction with the retirement of debt and $0.9 million of additional interest related to the accelerated amortization of a treasury lock tied to the retired portion of the debt. |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 2014 vs. | Q3 2014 vs. |
| July 31, | July 31, | % | ||||||||
(in thousands) | 2014 | 2014 | 2013 | Q2 2014 | Q3 2013 |
| 2014 | 2013 | Change | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated funds | $ | 42 | $ | 413 | $ | (206) | (90) | % | NM | % |
| $ | 259 | $ | 3,886 | (93) | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Majority-owned subsidiaries |
| 4,261 |
| 3,524 |
| 4,007 | 21 |
| 6 |
|
|
| 11,268 |
| 11,596 | (3) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interest value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| adjustments |
| (59) |
| - |
| 405 | NM |
| NM |
|
|
| 2,330 |
| 11,718 | (80) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Consolidated CLO entities |
| (910) |
| (791) |
| (2,359) | 15 |
| (61) |
|
|
| (2,005) |
| (5,592) | (64) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| and other beneficial interests | $ | 3,334 | $ | 3,146 | $ | 1,847 | 6 |
| 81 |
|
| $ | 11,852 | $ | 21,608 | (45) |
|
7
|
|
|
|
|
| Attachment 4 |
|
Eaton Vance Corp. |
| ||||||
Balance Sheet |
| ||||||
(in thousands, except per share figures) |
| ||||||
|
| ||||||
|
| ||||||
|
| July 31, |
|
|
| October 31, |
|
|
| 2014 |
|
|
| 2013 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents | $ | 362,017 |
|
| $ | 461,906 |
|
Investment advisory fees and other receivables |
| 171,403 |
|
|
| 170,220 |
|
Investments |
| 642,475 |
|
|
| 536,323 |
|
Assets of consolidated collateralized loan obligation ("CLO") entities: |
|
|
|
|
|
|
|
Cash and cash equivalents |
| 21,074 |
|
|
| 36,641 |
|
Bank loans and other investments |
| 166,025 |
|
|
| 685,681 |
|
Other assets |
| 2,179 |
|
|
| 5,814 |
|
Deferred sales commissions |
| 16,966 |
|
|
| 17,923 |
|
Deferred income taxes |
| 53,014 |
|
|
| 61,139 |
|
Equipment and leasehold improvements, net |
| 46,247 |
|
|
| 48,746 |
|
Intangible assets, net |
| 67,457 |
|
|
| 74,534 |
|
Goodwill |
| 228,876 |
|
|
| 228,876 |
|
Other assets |
| 58,355 |
|
|
| 79,446 |
|
Total assets | $ | 1,836,088 |
|
| $ | 2,407,249 |
|
|
|
|
|
|
|
|
|
Liabilities, Temporary Equity and Permanent Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued compensation | $ | 142,147 |
|
| $ | 169,953 |
|
Accounts payable and accrued expenses |
| 69,022 |
|
|
| 58,529 |
|
Dividend payable |
| 26,547 |
|
|
| 26,740 |
|
Debt |
| 573,616 |
|
|
| 573,499 |
|
Liabilities of consolidated CLO entities: |
|
|
|
|
|
|
|
Senior and subordinated note obligations |
| 182,725 |
|
|
| 279,127 |
|
Line of credit |
| - |
|
|
| 247,789 |
|
Redeemable preferred shares |
| - |
|
|
| 64,952 |
|
Other liabilities |
| 389 |
|
|
| 124,305 |
|
Other liabilities |
| 72,437 |
|
|
| 115,960 |
|
Total liabilities |
| 1,066,883 |
|
|
| 1,660,854 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary Equity: |
|
|
|
|
|
|
|
Redeemable non-controlling interests |
| 99,966 |
|
|
| 74,856 |
|
Total temporary equity |
| 99,966 |
|
|
| 74,856 |
|
|
|
|
|
|
|
|
|
Permanent Equity: |
|
|
|
|
|
|
|
Voting Common Stock, par value $0.00390625 per share: |
|
|
|
|
|
|
|
Authorized, 1,280,000 shares |
|
|
|
|
|
|
|
Issued and outstanding, 415,078 and 399,240 shares, respectively |
| 2 |
|
|
| 2 |
|
Non-Voting Common Stock, par value $0.00390625 per share: |
|
|
|
|
|
|
|
Authorized, 190,720,000 shares |
|
|
|
|
|
|
|
Issued and outstanding, 118,320,698 and 121,232,506 shares, respectively |
| 462 |
|
|
| 474 |
|
Additional paid-in capital |
| - |
|
|
| 124,837 |
|
Notes receivable from stock option exercises |
| (7,569) |
|
|
| (7,122) |
|
Accumulated other comprehensive loss |
| (4,508) |
|
|
| (177) |
|
Appropriated retained earnings |
| 4,557 |
|
|
| 10,249 |
|
Retained earnings |
| 674,492 |
|
|
| 541,521 |
|
Total Eaton Vance Corp. shareholders' equity |
| 667,436 |
|
|
| 669,784 |
|
Non-redeemable non-controlling interests |
| 1,803 |
|
|
| 1,755 |
|
Total permanent equity |
| 669,239 |
|
|
| 671,539 |
|
Total liabilities, temporary equity and permanent equity | $ | 1,836,088 |
|
| $ | 2,407,249 |
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
| 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, | |||||
|
| 2014 |
| 2014 |
| 2013 |
| 2014 |
| 2013 | |||||
Equity assets - beginning of period(2) | $ | 93,733 |
| $ | 90,765 |
| $ | 89,534 |
| $ | 93,585 |
| $ | 80,782 | |
| Sales and other inflows |
| 3,465 |
|
| 3,669 |
|
| 4,056 |
|
| 10,920 |
|
| 13,823 |
| Redemptions/outflows |
| (4,129) |
|
| (5,015) |
|
| (4,185) |
|
| (14,766) |
|
| (14,135) |
| Net flows |
| (664) |
|
| (1,346) |
|
| (129) |
|
| (3,846) |
|
| (312) |
| Assets acquired(3) |
| - |
|
| - |
|
| - |
|
| - |
|
| 1,572 |
| Exchanges |
| 468 |
|
| 20 |
|
| 46 |
|
| 1,000 |
|
| 162 |
| Market value change |
| 2,517 |
|
| 4,294 |
|
| 1,323 |
|
| 5,315 |
|
| 8,570 |
Equity assets - end of period | $ | 96,054 |
| $ | 93,733 |
| $ | 90,774 |
| $ | 96,054 |
| $ | 90,774 | |
Fixed income assets - beginning of period(4) |
| 43,917 |
|
| 43,339 |
|
| 49,949 |
|
| 44,211 |
|
| 49,003 | |
| Sales and other inflows |
| 3,344 |
|
| 2,626 |
|
| 2,065 |
|
| 8,420 |
|
| 8,732 |
| Redemptions/outflows |
| (3,299) |
|
| (2,756) |
|
| (3,595) |
|
| (9,336) |
|
| (10,318) |
| Net flows |
| 45 |
|
| (130) |
|
| (1,530) |
|
| (916) |
|
| (1,586) |
| Assets acquired(3) |
| - |
|
| - |
|
| - |
|
| - |
|
| 472 |
| Exchanges |
| 59 |
|
| 62 |
|
| (277) |
|
| 23 |
|
| (358) |
| Market value change |
| 266 |
|
| 646 |
|
| (2,321) |
|
| 969 |
|
| (1,710) |
Fixed income assets - end of period | $ | 44,287 |
| $ | 43,917 |
| $ | 45,821 |
| $ | 44,287 |
| $ | 45,821 | |
Floating-rate income assets - beginning of period |
| 45,115 |
|
| 44,073 |
|
| 33,679 |
|
| 41,821 |
|
| 26,388 | |
| Sales and other inflows |
| 4,139 |
|
| 4,170 |
|
| 6,636 |
|
| 13,094 |
|
| 15,987 |
| Redemptions/outflows |
| (5,491) |
|
| (2,842) |
|
| (2,152) |
|
| (11,037) |
|
| (4,664) |
| Net flows |
| (1,352) |
|
| 1,328 |
|
| 4,484 |
|
| 2,057 |
|
| 11,323 |
| Exchanges |
| (62) |
|
| (49) |
|
| 169 |
|
| (57) |
|
| 251 |
| Market value change |
| 51 |
|
| (237) |
|
| (162) |
|
| (69) |
|
| 208 |
Floating-rate income assets - end of period | $ | 43,752 |
| $ | 45,115 |
| $ | 38,170 |
| $ | 43,752 |
| $ | 38,170 | |
Alternative assets - beginning of period |
| 12,112 |
|
| 13,171 |
|
| 16,022 |
|
| 15,212 |
|
| 12,864 | |
| Sales and other inflows |
| 774 |
|
| 767 |
|
| 2,348 |
|
| 2,630 |
|
| 6,925 |
| Redemptions/outflows |
| (1,208) |
|
| (1,967) |
|
| (1,770) |
|
| (6,164) |
|
| (3,785) |
| Net flows |
| (434) |
|
| (1,200) |
|
| 578 |
|
| (3,534) |
|
| 3,140 |
| Assets acquired(3) |
| - |
|
| - |
|
| - |
|
| - |
|
| 650 |
| Exchanges |
| (15) |
|
| (20) |
|
| (22) |
|
| (84) |
|
| (138) |
| Market value change |
| 28 |
|
| 161 |
|
| (480) |
|
| 97 |
|
| (418) |
Alternative assets - end of period | $ | 11,691 |
| $ | 12,112 |
| $ | 16,098 |
| $ | 11,691 |
| $ | 16,098 | |
Implementation services assets - beginning of period |
| 90,815 |
|
| 87,010 |
|
| 70,966 |
|
| 85,637 |
|
| 30,302 | |
| Sales and other inflows |
| 14,429 |
|
| 11,549 |
|
| 12,933 |
|
| 43,399 |
|
| 26,663 |
| Redemptions/outflows |
| (14,053) |
|
| (11,105) |
|
| (7,504) |
|
| (41,168) |
|
| (18,396) |
| Net flows |
| 376 |
|
| 444 |
|
| 5,429 |
|
| 2,231 |
|
| 8,267 |
| Assets acquired(3) |
| - |
|
| - |
|
| - |
|
| - |
|
| 32,064 |
| Exchanges |
| (456) |
|
| (5) |
|
| - |
|
| (913) |
|
| (14) |
| Market value change |
| 1,488 |
|
| 3,366 |
|
| 1,278 |
|
| 5,268 |
|
| 7,054 |
Implementation services assets - end of period | $ | 92,223 |
| $ | 90,815 |
| $ | 77,673 |
| $ | 92,223 |
| $ | 77,673 | |
Total long-term fund and separate account |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| assets - beginning of period |
| 285,692 |
|
| 278,358 |
|
| 260,150 |
|
| 280,466 |
|
| 199,339 |
| Sales and other inflows |
| 26,151 |
|
| 22,781 |
|
| 28,038 |
|
| 78,463 |
|
| 72,130 |
| Redemptions/outflows |
| (28,180) |
|
| (23,685) |
|
| (19,206) |
|
| (82,471) |
|
| (51,298) |
| Net flows |
| (2,029) |
|
| (904) |
|
| 8,832 |
|
| (4,008) |
|
| 20,832 |
| Assets acquired(3) |
| - |
|
| - |
|
| - |
|
| - |
|
| 34,758 |
| Exchanges |
| (6) |
|
| 8 |
|
| (84) |
|
| (31) |
|
| (97) |
| Market value change |
| 4,350 |
|
| 8,230 |
|
| (362) |
|
| 11,580 |
|
| 13,704 |
Total long-term fund and separate account |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| assets - end of period | $ | 288,007 |
| $ | 285,692 |
| $ | 268,536 |
| $ | 288,007 |
| $ | 268,536 |
Cash management fund assets - end of period |
| 187 |
|
| 177 |
|
| 219 |
|
| 187 |
|
| 219 | |
Total assets under management - end of period | $ | 288,194 |
| $ | 285,869 |
| $ | 268,755 |
| $ | 288,194 |
| $ | 268,755 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Represents assets gained in the acquisition of The Clifton Group Investment Management Company on December 31, 2012. | |||||||||||||||
(4) Includes assets in institutional cash management separate accounts. | |||||||||||||||
9
|
|
|
|
|
|
|
|
|
|
|
| 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, | |||||
|
| 2014 |
| 2014 |
| 2013 |
| 2014 |
| 2013 | |||||
Long-term fund assets - beginning of period | $ | 134,942 |
| $ | 131,984 |
| $ | 127,014 |
| $ | 133,198 |
| $ | 113,249 | |
| Sales and other inflows |
| 8,634 |
|
| 8,684 |
|
| 11,597 |
|
| 27,551 |
|
| 33,307 |
| Redemptions/outflows |
| (10,272) |
|
| (8,751) |
|
| (7,932) |
|
| (29,284) |
|
| (21,316) |
| Net flows |
| (1,638) |
|
| (67) |
|
| 3,665 |
|
| (1,733) |
|
| 11,991 |
| Assets acquired(2) |
| - |
|
| - |
|
| - |
|
| - |
|
| 638 |
| Exchanges |
| (6) |
|
| 81 |
|
| (241) |
|
| 41 |
|
| (262) |
| Market value change |
| 1,671 |
|
| 2,944 |
|
| (1,396) |
|
| 3,463 |
|
| 3,426 |
Long-term fund assets - end of period | $ | 134,969 |
| $ | 134,942 |
| $ | 129,042 |
| $ | 134,969 |
| $ | 129,042 | |
Institutional separate account assets - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| beginning of period(3) |
| 96,564 |
|
| 94,869 |
|
| 84,724 |
|
| 95,724 |
|
| 43,338 |
| Sales and other inflows |
| 14,717 |
|
| 11,101 |
|
| 13,480 |
|
| 42,620 |
|
| 28,366 |
| Redemptions/outflows |
| (14,912) |
|
| (12,249) |
|
| (8,901) |
|
| (44,632) |
|
| (21,792) |
| Net flows |
| (195) |
|
| (1,148) |
|
| 4,579 |
|
| (2,012) |
|
| 6,574 |
| Assets acquired(2) |
| - |
|
| - |
|
| - |
|
| - |
|
| 34,120 |
| Exchanges |
| 377 |
|
| (96) |
|
| 152 |
|
| 280 |
|
| 157 |
| Market value change |
| 1,647 |
|
| 2,939 |
|
| 18 |
|
| 4,401 |
|
| 5,284 |
Institutional separate account assets - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| end of period | $ | 98,393 |
| $ | 96,564 |
| $ | 89,473 |
| $ | 98,393 |
| $ | 89,473 |
High-net-worth separate account assets - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| beginning of period |
| 20,968 |
|
| 19,374 |
|
| 18,027 |
|
| 19,699 |
|
| 15,036 |
| Sales and other inflows |
| 794 |
|
| 968 |
|
| 1,055 |
|
| 2,476 |
|
| 3,931 |
| Redemptions/outflows |
| (953) |
|
| (988) |
|
| (614) |
|
| (3,045) |
|
| (2,385) |
| Net flows |
| (159) |
|
| (20) |
|
| 441 |
|
| (569) |
|
| 1,546 |
| Exchanges |
| (433) |
|
| 402 |
|
| (9) |
|
| (30) |
|
| (16) |
| Market value change |
| 475 |
|
| 1,212 |
|
| 612 |
|
| 1,751 |
|
| 2,505 |
High-net-worth separate account assets - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| end of period | $ | 20,851 |
| $ | 20,968 |
| $ | 19,071 |
| $ | 20,851 |
| $ | 19,071 |
Retail managed account assets - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| beginning of period |
| 33,218 |
|
| 32,131 |
|
| 30,385 |
|
| 31,845 |
|
| 27,716 |
| Sales and other inflows |
| 2,006 |
|
| 2,028 |
|
| 1,906 |
|
| 5,816 |
|
| 6,526 |
| Redemptions/outflows |
| (2,043) |
|
| (1,697) |
|
| (1,759) |
|
| (5,510) |
|
| (5,805) |
| Net flows |
| (37) |
|
| 331 |
|
| 147 |
|
| 306 |
|
| 721 |
| Exchanges |
| 56 |
|
| (379) |
|
| 14 |
|
| (322) |
|
| 24 |
| Market value change |
| 557 |
|
| 1,135 |
|
| 404 |
|
| 1,965 |
|
| 2,489 |
Retail managed account assets - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| end of period | $ | 33,794 |
| $ | 33,218 |
| $ | 30,950 |
| $ | 33,794 |
| $ | 30,950 |
Total long-term fund and separate account |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| assets - beginning of period |
| 285,692 |
|
| 278,358 |
|
| 260,150 |
|
| 280,466 |
|
| 199,339 |
| Sales and other inflows |
| 26,151 |
|
| 22,781 |
|
| 28,038 |
|
| 78,463 |
|
| 72,130 |
| Redemptions/outflows |
| (28,180) |
|
| (23,685) |
|
| (19,206) |
|
| (82,471) |
|
| (51,298) |
| Net flows |
| (2,029) |
|
| (904) |
|
| 8,832 |
|
| (4,008) |
|
| 20,832 |
| Assets acquired(2) |
| - |
|
| - |
|
| - |
|
| - |
|
| 34,758 |
| Exchanges |
| (6) |
|
| 8 |
|
| (84) |
|
| (31) |
|
| (97) |
| Market value change |
| 4,350 |
|
| 8,230 |
|
| (362) |
|
| 11,580 |
|
| 13,704 |
Total long-term fund and separate account |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| assets - end of period | $ | 288,007 |
| $ | 285,692 |
| $ | 268,536 |
| $ | 288,007 |
| $ | 268,536 |
Cash management fund assets - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| end of period |
| 187 |
|
| 177 |
|
| 219 |
|
| 187 |
|
| 219 |
Total assets under management - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| end of period | $ | 288,194 |
| $ | 285,869 |
| $ | 268,755 |
| $ | 288,194 |
| $ | 268,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(1) Consolidated Eaton Vance Corp. See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest Inc. | |||||||||||||||
(2) Represents assets gained in the acquisition of The Clifton Group Investment Management Company on December 31, 2012. | |||||||||||||||
(3) Includes assets in institutional 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, |
| % |
|
|
| 2014 |
|
| 2014 |
| Change |
|
| 2013 |
| Change |
Eaton Vance Management(2) | $ | 143,337 |
| $ | 144,892 |
| -1% |
| $ | 143,229 |
| 0% | |
Parametric |
| 126,777 |
|
| 122,562 |
| 3% |
|
| 107,192 |
| 18% | |
Atlanta Capital |
| 18,080 |
|
| 18,415 |
| -2% |
|
| 18,334 |
| -1% | |
Total | $ | 288,194 |
| $ | 285,869 |
| 1% |
| $ | 268,755 |
| 7% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Eaton Vance Investment Counsel and Fox Asset Management | |||||||||||||
LLC, as well as certain Eaton Vance-sponsored funds and accounts managed by Hexavest and unaffiliated third-party | |||||||||||||
advisors 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, |
| % |
|
|
| 2014 |
|
| 2014 |
| Change |
|
| 2013 |
| Change |
Equity(2) | $ | 96,054 |
| $ | 93,733 |
| 2% |
| $ | 90,774 |
| 6% | |
Fixed income(3) |
| 44,287 |
|
| 43,917 |
| 1% |
|
| 45,821 |
| -3% | |
Floating-rate income |
| 43,752 |
|
| 45,115 |
| -3% |
|
| 38,170 |
| 15% | |
Alternative |
| 11,691 |
|
| 12,112 |
| -3% |
|
| 16,098 |
| -27% | |
Implementation services |
| 92,223 |
|
| 90,815 |
| 2% |
|
| 77,673 |
| 19% | |
Cash management funds |
| 187 |
|
| 177 |
| 6% |
|
| 219 |
| -15% | |
Total | $ | 288,194 |
| $ | 285,869 |
| 1% |
| $ | 268,755 |
| 7% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 institutional cash management separate accounts. | |||||||||||||
11
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, | |||||
|
|
| 2014 |
| 2014 |
| 2013 |
| 2014 |
| 2013 | |||||
Eaton Vance distributed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Eaton Vance sponsored funds - beginning of period(1) | $ | 221 |
| $ | 212 |
| $ | 161 |
| $ | 211 |
| $ | 37 | ||
| Sales and other inflows |
| 6 |
|
| 12 |
|
| 19 |
|
| 49 |
|
| 130 | |
| Redemptions/outflows |
| (10) |
|
| (17) |
|
| (6) |
|
| (53) |
|
| (12) | |
| Net flows |
| (4) |
|
| (5) |
|
| 13 |
|
| (4) |
|
| 118 | |
| Market value change |
| 4 |
|
| 14 |
|
| (1) |
|
| 14 |
|
| 18 | |
Eaton Vance sponsored funds - end of period | $ | 221 |
| $ | 221 |
| $ | 173 |
| $ | 221 |
| $ | 173 | ||
Eaton Vance distributed separate accounts - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| beginning of period(2) | $ | 2,354 |
| $ | 1,383 |
| $ | 1,283 |
| $ | 1,574 |
| $ | - | |
| Sales and other inflows |
| 136 |
|
| 307 |
|
| 227 |
|
| 519 |
|
| 1,378 | |
| Redemptions/outflows |
| (122) |
|
| (74) |
|
| (1) |
|
| (201) |
|
| (1) | |
| Net flows |
| 14 |
|
| 233 |
|
| 226 |
|
| 318 |
|
| 1,377 | |
| Exchanges |
| - |
|
| 624 |
|
| - |
|
| 389 |
|
| - | |
| Market value change |
| 29 |
|
| 114 |
|
| 6 |
|
| 116 |
|
| 138 | |
Eaton Vance distributed separate accounts - |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| end of period | $ | 2,397 |
| $ | 2,354 |
| $ | 1,515 |
| $ | 2,397 |
| $ | 1,515 | |
Total Eaton Vance distributed - beginning of period | $ | 2,575 |
| $ | 1,595 |
| $ | 1,444 |
| $ | 1,785 |
| $ | 37 | ||
| Sales and other inflows |
| 142 |
|
| 319 |
|
| 246 |
|
| 568 |
|
| 1,508 | |
| Redemptions/outflows |
| (132) |
|
| (91) |
|
| (7) |
|
| (254) |
|
| (13) | |
| Net flows |
| 10 |
|
| 228 |
|
| 239 |
|
| 314 |
|
| 1,495 | |
| Exchanges |
| - |
|
| 624 |
|
| - |
|
| 389 |
|
| - | |
| Market value change |
| 33 |
|
| 128 |
|
| 5 |
|
| 130 |
|
| 156 | |
Total Eaton Vance distributed - end of period | $ | 2,618 |
| $ | 2,575 |
| $ | 1,688 |
| $ | 2,618 |
| $ | 1,688 | ||
Hexavest directly distributed - beginning of period(3) | $ | 14,477 |
| $ | 14,543 |
| $ | 13,831 |
| $ | 15,136 |
| $ | 12,073 | ||
| Sales and other inflows |
| 597 |
|
| 355 |
|
| 785 |
|
| 1,392 |
|
| 2,003 | |
| Redemptions/outflows |
| (904) |
|
| (681) |
|
| (530) |
|
| (2,546) |
|
| (1,363) | |
| Net flows |
| (307) |
|
| (326) |
|
| 255 |
|
| (1,154) |
|
| 640 | |
| Exchanges |
| - |
|
| (624) |
|
| - |
|
| (389) |
|
| - | |
| Market value change |
| 253 |
|
| 884 |
|
| (40) |
|
| 830 |
|
| 1,333 | |
Hexavest directly distributed - end of period | $ | 14,423 |
| $ | 14,477 |
| $ | 14,046 |
| $ | 14,423 |
| $ | 14,046 | ||
Total Hexavest assets - beginning of period | $ | 17,052 |
| $ | 16,138 |
| $ | 15,275 |
| $ | 16,921 |
| $ | 12,110 | ||
| Sales and other inflows |
| 739 |
|
| 674 |
|
| 1,031 |
|
| 1,960 |
|
| 3,511 | |
| Redemptions/outflows |
| (1,036) |
|
| (772) |
|
| (537) |
|
| (2,800) |
|
| (1,376) | |
| Net flows |
| (297) |
|
| (98) |
|
| 494 |
|
| (840) |
|
| 2,135 | |
| Market value change |
| 286 |
|
| 1,012 |
|
| (35) |
|
| 960 |
|
| 1,489 | |
Total Hexavest assets - end of period | $ | 17,041 |
| $ | 17,052 |
| $ | 15,734 |
| $ | 17,041 |
| $ | 15,734 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Managed assets and flows of Eaton Vance-sponsored pooled investment vehicles for which Hexavest is advisor or sub-advisor. 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. | |||||||||||||||
12