Eaton Vance Corp. Report for the Three Months and Fiscal Year Ended October 31, 2017

BOSTON, Nov. 21, 2017 /PRNewswire/ -- Eaton Vance Corp. (NYSE: EV) today reported earnings per diluted share of $2.42 for the fiscal year ended October 31, 2017, an increase of 14 percent from $2.12 of earnings per diluted share for the fiscal year ended October 31, 2016.

The Company reported adjusted earnings per diluted share⁽¹⁾ of $2.48 for the fiscal year ended October 31, 2017, an increase of 16 percent from $2.13 of adjusted earnings per diluted share for the fiscal year ended October 31, 2016. For the fiscal year ended October 31, 2017, adjusted earnings differed from earnings under U.S. generally accepted accounting principles (GAAP) by $0.06 per diluted share to reflect $5.4 million of costs associated with the May 2017 retirement of $250 million aggregate principal amount of the Company's 6.5 percent senior notes due October 2, 2017 (2017 Senior Notes), $3.5 million of structuring fees paid in connection with the $210 million initial public offering of Eaton Vance Floating-Rate 2022 Target Term Trust (2022 Target Term Trust) in July 2017 and $0.5 million to reflect increases in the estimated redemption value of non-controlling interests in affiliates redeemable at other than fair value. For the fiscal year ended October 31, 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 (2021 Target Term Trust) in May 2016. Attachment 2 shows a reconciliation of GAAP earnings to adjusted earnings.

The Company earned $0.69 per diluted share in the fourth quarter of fiscal 2017, an increase of 21 percent from $0.57 per diluted share in the fourth quarter of fiscal 2016 and an increase of 19 percent from $0.58 per diluted share in the third quarter of fiscal 2017.

The Company had adjusted earnings per diluted share of $0.70 in the fourth quarter of fiscal 2017, an increase of 23 percent from $0.57 of adjusted earnings per diluted share in the fourth quarter of fiscal 2016 and an increase of 13 percent from $0.62 of adjusted earnings per diluted share in the third quarter of fiscal 2017. In the fourth quarter of fiscal 2017, adjusted earnings differed from GAAP earnings by $0.01 per diluted share to reflect increases in the estimated redemption value of non-controlling interests in affiliates redeemable at other than fair value. Adjusted earnings per diluted share matched GAAP earnings per diluted share in the fourth quarter of fiscal 2016. In the third quarter of fiscal 2017, adjusted earnings differed from GAAP earnings by $0.04 per diluted share to reflect $5.4 million of costs associated with retiring the 2017 Senior Notes and $3.5 million of structuring fees paid in connection with the initial public offering of the 2022 Target Term Trust, as mentioned above.

Net gains and other investment income related to seed capital investments contributed $0.04 and $0.05 to earnings per diluted share for the fiscal years ended October 31, 2017 and 2016, respectively. Net gains and other investment income related to seed capital investments contributed $0.01 to earnings per diluted share in each of the fourth quarter of fiscal 2017, the fourth quarter of fiscal 2016 and the third quarter of fiscal 2017.

Consolidated net inflows of $37.8 billion for the fiscal year ended October 31, 2017 represent an 11 percent annualized internal growth rate in managed assets (consolidated net inflows divided by beginning of period consolidated assets under management). This compares to net inflows of $19.3 billion and 6 percent annualized internal growth in managed assets for the fiscal year ended October 31, 2016. On the basis of net contribution to management fee revenue, the Company's annualized internal revenue growth rate was 7 percent for the fiscal year ended October 31, 2017 and 1 percent for the fiscal year ended October 31, 2016.

Consolidated net inflows of $8.0 billion in the fourth quarter of fiscal 2017 represent an 8 percent annualized internal growth rate in managed assets. This compares to net inflows of $4.8 billion and 6 percent annualized internal growth in managed assets in the fourth quarter of fiscal 2016 and net inflows of $9.1 billion and annualized internal growth in managed assets of 9 percent in the third quarter of fiscal 2017. On the basis of net contribution to management fee revenue, the Company's annualized internal revenue growth rate was 5 percent in the fourth quarter of fiscal 2017, 2 percent in the fourth quarter of fiscal 2016 and 6 percent in the third quarter of fiscal 2017.

Consolidated assets under management were $422.3 billion on October 31, 2017, up 26 percent from $336.4 billion of consolidated managed assets on October 31, 2016 and up 4 percent from $405.6 billion of consolidated managed assets on July 31, 2017. The year-over-year increase in consolidated assets under management reflects net inflows of $37.8 billion, market price appreciation of $38.2 billion and $9.9 billion of new managed assets gained in the acquisition of the business assets of Calvert Investment Management, Inc. (Calvert) on December 30, 2016. The sequential quarterly increase in consolidated assets under management reflects net inflows of $8.0 billion and market price appreciation of $8.8 billion in the fourth quarter of fiscal 2017.

"Eaton Vance finished fiscal 2017 on a strong note, with record consolidated assets under management and annual net flows and a new all-time high quarter earnings rate in the fourth quarter," said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "Favorable market performance and our continuing organic revenue growth position the Company for further earnings progress in fiscal 2018."

Average consolidated assets under management were $382.4 billion for the fiscal year ended October 31, 2017, an increase of 19 percent from $320.9 billion for the fiscal year ended October 31, 2016. Average consolidated assets under management were $413.9 billion in the fourth quarter of fiscal 2017, up 22 percent from $338.9 billion in the fourth quarter of fiscal 2016 and up 5 percent from $395.2 billion in the third quarter of fiscal 2017.

Excluding performance-based fees, annualized management fee rates on consolidated assets under management averaged 34.5 basis points for the fiscal year ended October 31, 2017, a decrease of 4 percent from 35.8 basis points for the fiscal year ended October 31, 2016. Excluding performance-based fees, annualized management fee rates on consolidated assets under management averaged 33.9 basis points in the fourth quarter of fiscal 2017, down 3 percent from 35.0 basis points in the fourth quarter of fiscal 2016 and down 1 percent from 34.2 basis points in the third quarter of fiscal 2017. Changes in average management fee rates for the compared periods primarily reflect the ongoing shift in the Company's mix of business toward lower-fee mandates.

Attachments 5 and 6 summarize the Company's assets under management and net 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 management fee rates by investment mandate.

As shown in Attachments 5 and 6, consolidated sales and other inflows were $168.3 billion for the fiscal year ended October 31, 2017, an increase of 35 percent from $125.1 billion for the fiscal year ended October 31, 2016. Consolidated sales and other inflows were $44.6 billion in the fourth quarter of fiscal 2017, up 27 percent from $35.1 billion in the fourth quarter of fiscal 2016 and up 12 percent from $39.8 billion in the third quarter of fiscal 2017.

Consolidated redemptions and other outflows were $130.4 billion for the fiscal year ended October 31, 2017, an increase of 23 percent from $105.8 billion for the fiscal year ended October 31, 2016. Consolidated redemptions and other outflows were $36.6 billion in the fourth quarter of fiscal 2017, up 21 percent from $30.2 billion in the fourth quarter of fiscal 2016 and up 19 percent from $30.7 billion in the third quarter of fiscal 2017.

As of October 31, 2017, the Company's 49 percent-owned affiliate Hexavest, Inc. (Hexavest) managed $16.0 billion of client assets, up 17 percent from $13.7 billion of managed assets on October 31, 2016 and up 4 percent from $15.4 billion of managed assets on July 31, 2017. Hexavest had net inflows of $0.1 billion for the fiscal year ended October 31, 2017 versus net outflows of $1.1 billion for the fiscal year ended October 31, 2016. Hexavest had net inflows of $0.3 billion in the fourth quarter of fiscal 2017 versus net outflows of $0.1 billion in the fourth quarter of fiscal 2016 and net inflows of $0.4 billion in the third quarter of fiscal 2017. 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
(in thousands, except per share figures)

	Three Months Ended						Fiscal Year Ended
	October 31,		July 31,		October 31,		October 31,		October 31,
	2017		2017		2016		2017		2016
Revenue	$	405,673	$	393,746	$	346,846	$	1,529,010	$	1,342,860
Expenses		267,302		272,715		235,696		1,046,252		928,592
Operating income		138,371		121,031		111,150		482,758		414,268
Operating margin		34.1%		30.7%		32.0%		31.6%		30.8%
Non-operating expense		(1,920)		(6,039)		(6,505)		(13,589)		(6,216)
Income taxes		(49,802)		(42,462)		(40,837)		(173,666)		(153,630)
Equity in net income of
affiliates, net of tax		2,897		2,323		2,488		10,870		10,335
Net income		89,546		74,853		66,296		306,373		264,757
Net income attributable to
non-controlling and other
beneficial interests		(7,462)		(7,492)		(1,241)		(24,242)		(23,450)
Net income attributable to
Eaton Vance Corp. shareholders	$	82,084	$	67,361	$	65,055	$	282,131	$	241,307
Adjusted net income attributable to
Eaton Vance Corp. shareholders	$	82,726	$	72,849	$	65,132	$	288,187	$	242,908
Earnings per diluted share	$	0.69	$	0.58	$	0.57	$	2.42	$	2.12
Adjusted earnings per diluted share	$	0.70	$	0.62	$	0.57	$	2.48	$	2.13

Full Year Fiscal 2017 vs. Full Year Fiscal 2016

In fiscal 2017, revenue increased 14 percent to $1.5 billion from $1.3 billion in fiscal 2016. Management fees were up 15 percent, as a 19 percent increase in average consolidated assets under management more than offset lower consolidated average management fee rates. Performance fees contributed $0.4 million in fiscal 2017 compared to $3.4 million in fiscal 2016. Distribution and service fee revenues collectively were up 9 percent, reflecting higher managed assets in fund share classes that are subject to these fees.

Operating expenses increased 13 percent to $1.0 billion in fiscal 2017 from $0.9 billion in fiscal 2016, reflecting increases in compensation, distribution expense, service fee expense, amortization of deferred sales commissions, fund-related expenses and other operating expenses. The increase in compensation expense reflects higher sales-based and operating income-based bonus accruals, higher salaries and benefits associated with increases in headcount, partly in connection with the Calvert acquisition, and higher stock-based compensation. The increase in distribution expense reflects an increase in closed-end fund structuring fees and higher marketing and promotion costs, primarily driven by higher average managed assets and the acquisition of the Calvert business. The increase in service fee expense reflects higher average assets under management in fund share classes subject to service fee payments. The increase in amortization of deferred sales commissions reflects higher commission amortization for private funds, partially offset by lower Class B and Class C commission amortization. The increase in fund-related expenses reflects higher fund subsidies attributable primarily to the addition of the Calvert funds, higher sub-advisory fees paid, an increase in fund expenses borne by the Company on funds for which it earns an all-in fee and $1.9 million in one-time reimbursements made to the funds by the Company in fiscal 2017. The increase in other operating expenses reflects higher travel, communications, information technology, professional services, and other corporate expenses.

Expenses in connection with the Company's NextShares^TM exchange-traded managed funds (NextShares) initiative totaled $7.4 million in fiscal 2017 and $8.0 million in fiscal 2016.

Operating income increased 17 percent to $482.8 million in fiscal 2017 from $414.3 million in fiscal 2016. Operating margin increased to 31.6 percent in fiscal 2017 from 30.8 percent in fiscal 2016. As shown in Attachment 2, excluding the $3.5 million and $2.3 million of closed-end fund structuring fees paid in fiscal 2017 and fiscal 2016, respectively, adjusted operating income was up 17 percent year-over-year and adjusted operating margin increased to 31.8 percent in fiscal 2017 from 31.0 percent in fiscal 2016.

Non-operating expense totaled $13.6 million in fiscal 2017 versus $6.2 million in fiscal 2016. The year-over-year change reflects $5.4 million of costs incurred in connection with retiring the Company's 2017 Senior Notes in fiscal 2017 and a $10.8 million decline in income contribution from a consolidated Collateralized Loan Obligation (CLO) entity, which was deconsolidated at the end of fiscal 2016, partially offset by a $6.9 million increase in net gains and other investment income from the Company's investments in sponsored products and a $1.9 million decrease in interest expense. Net gains and other investment income in fiscal 2017 included a $1.9 million gain recognized upon the release from escrow of payments received in connection with the sale of the Company's equity interest in Lloyd George Management (BVI) Ltd. in fiscal 2011. The decrease in interest expense primarily reflects the May 2017 retirement of the Company's 6.5 percent 2017 Senior Notes and the April 2017 issuance of $300 million in aggregate principal amount of 3.5 percent senior notes due April 6, 2027 (2027 Senior Notes).

The Company's effective tax rate, calculated as a percentage of income before income taxes and equity in net income of affiliates, was 37.0 percent in fiscal 2017 and 37.7 percent in fiscal 2016.

Equity in net income of affiliates was $10.9 million in fiscal 2017 and $10.3 million in fiscal 2016. Equity in net income of affiliates in fiscal 2017 included $10.6 million from the Company's investment in Hexavest and $0.3 million from the Company's investment in a private equity partnership. Equity in net income of affiliates in fiscal 2016 included $10.0 million from the Company's investment in Hexavest and $0.4 million from the Company's investment in a private equity partnership.

As detailed in Attachment 3, net income attributable to non-controlling and other beneficial interests was $24.2 million in fiscal 2017 and $23.5 million in fiscal 2016.

Fourth Quarter Fiscal 2017 vs. Fourth Quarter Fiscal 2016

In the fourth quarter of fiscal 2017, revenue increased 17 percent to $405.7 million from $346.8 million in the fourth quarter of fiscal 2016. Management fees were up 18 percent, as a 22 percent increase in average consolidated assets under management more than offset lower consolidated average management fee rates. Performance fees were -$0.3 million in the fourth quarter of fiscal 2017 versus $0.6 million in the fourth quarter of fiscal 2016. Distribution and service fee revenues collectively were up 9 percent, reflecting higher managed assets in fund share classes that are subject to these fees.

Operating expenses increased 13 percent to $267.3 million in the fourth quarter of fiscal 2017 from $235.7 million in the fourth quarter of fiscal 2016, reflecting increases in compensation, distribution expense, service fee expense, amortization of deferred sales commissions, fund-related expenses and other operating expenses. The increase in compensation expense reflects higher sales-based and operating income-based bonus accruals, higher salaries and benefits associated with increases in headcount, partly in connection with the Calvert acquisition, and higher stock-based compensation. The increase in distribution expense reflects an increase in intermediary marketing support payments, primarily driven by higher average managed assets and the acquisition of the Calvert business. The increase in service fee expense reflects higher average assets under management in fund share classes subject to service fee payments. The increase in amortization of deferred sales commissions reflects higher commission amortization for private funds, partially offset by lower Class B and Class C commission amortization. The increase in fund-related expenses reflects higher fund subsidies attributable primarily to the addition of the Calvert funds and an increase in fund expenses borne by the Company on funds for which it earns an all-in fee. The increase in other operating expenses reflects higher travel, communications, information technology, professional services, facilities and other corporate expenses.

Expenses in connection with the Company's NextShares initiative totaled $1.7 million in the fourth quarter of fiscal 2017 and $2.0 million in the fourth quarter of fiscal 2016.

Operating income increased 24 percent to $138.4 million in the fourth quarter of fiscal 2017 from $111.2 million in the fourth quarter of fiscal 2016. Operating margin increased to 34.1 percent in the fourth quarter of fiscal 2017 from 32.0 percent in the fourth quarter of fiscal 2016.

Non-operating expense totaled $1.9 million in the fourth quarter of fiscal 2017 versus $6.5 million in the fourth quarter of fiscal 2016. The year-over-year change reflects a $1.3 million increase in net gains and other investment income from the Company's investments in sponsored products, a $1.5 million decrease in interest expense and a $1.8 million decrease in expense allocation from a consolidated CLO entity, which was deconsolidated at the end of fiscal 2016. The decrease in interest expense primarily reflects the May 2017 retirement of the Company's 6.5 percent 2017 Senior Notes and the April 2017 issuance of the Company's 3.5 percent 2027 Senior Notes.

The Company's effective tax rate, calculated as a percentage of income before income taxes and equity in net income of affiliates, was 36.5 percent in the fourth quarter of fiscal 2017 and 39.0 percent in the fourth quarter of fiscal 2016.

Equity in net income of affiliates was $2.9 million in the fourth quarter of fiscal 2017 and $2.5 million in the fourth quarter of fiscal 2016. In the fourth quarter of fiscal 2017, substantially all equity in net income of affiliates related to the Company's investment in Hexavest. Equity in net income of affiliates in the fourth quarter of fiscal 2016 included $2.3 million from the Company's investment in Hexavest and $0.2 million from the Company's investment in a private equity partnership.

As detailed in Attachment 3, net income attributable to non-controlling and other beneficial interests was $7.5 million in the fourth quarter of fiscal 2017 and $1.2 million in the fourth quarter of fiscal 2016.

Fourth Quarter Fiscal 2017 vs. Third Quarter Fiscal 2017

In the fourth quarter of fiscal 2017, revenue increased 3 percent to $405.7 million from $393.7 million in the third quarter of fiscal 2017. Management fees were up 4 percent, as a 5 percent increase in average consolidated assets under management more than offset lower consolidated average management fee rates. Performance fees were -$0.3 million in the fourth quarter of fiscal 2017 versus $0.5 million in the third quarter of fiscal 2017. Distribution and service fee revenues collectively were down 1 percent, reflecting lower managed assets in fund share classes that are subject to these fees.

Operating expenses decreased 2 percent to $267.3 million in the fourth quarter of fiscal 2017 from $272.7 million in the third quarter of fiscal 2017. Decreases in compensation, distribution expense, and fund-related expenses were partially offset by increases in service fee expense and other operating expenses. The decrease in compensation expense reflects lower sales-based bonus accruals, a decrease in stock-based compensation and lower costs associated with employee terminations, partially offset by higher operating income-based bonus accruals. Costs associated with employee terminations totaled $0.4 million in the fourth quarter of fiscal 2017 versus $3.0 million in the third quarter of fiscal 2017. The decrease in distribution expense reflects a decrease in closed-end fund structuring fees and lower marketing and promotion costs. The decrease in fund-related expenses reflects lower fund subsidies, a decrease in fund expenses borne by the Company on funds for which it earns an all-in fee and $1.9 million in one-time reimbursements made to the funds by the Company in the third quarter of fiscal 2017. The increase in service fee expense reflects higher average assets under management in fund share classes subject to service fee payments. Other operating expenses increased 4 percent, reflecting higher travel, information technology, professional services and facilities expenses.

Expenses in connection with the Company's NextShares initiative totaled $1.7 million in the fourth quarter of fiscal 2017 and $2.0 million in the third quarter of fiscal 2017.

Operating income increased 14 percent to $138.4 million in the fourth quarter of fiscal 2017 from $121.0 million in the third quarter of fiscal 2017. Operating margin increased to 34.1 percent in the fourth quarter of fiscal 2017 from 30.7 percent in the third quarter of fiscal 2016. Excluding the $3.5 million of closed-end fund structuring fees paid during the third quarter of fiscal 2017, adjusted operating income was up 11 percent sequentially and adjusted operating margin was 31.6 percent in the third quarter of fiscal 2017.

Non-operating expense totaled $1.9 million in the fourth quarter of fiscal 2017 versus $6.0 million in the third quarter of fiscal 2017. The sequential change reflects $5.4 million of costs incurred in connection with retiring the Company's 2017 Senior Notes in the third quarter of fiscal 2017 and a $0.3 million decrease in interest expense, partially offset by a $1.6 million decrease in net gains and other investment income from the Company's investments in sponsored products. The decrease in interest expense primarily reflects the retirement of the Company's 6.5 percent 2017 Senior Notes in the third quarter of fiscal 2017.

Equity in net income of affiliates was $2.9 million and $2.3 million in the fourth and third quarters of fiscal 2017, respectively, substantially all relating to the Company's investment in Hexavest.

As detailed in Attachment 3, net income attributable to non-controlling and other beneficial interests was $7.5 million in both the fourth and third quarters of fiscal 2017.

Balance Sheet Information

Cash and cash equivalents totaled $610.6 million on October 31, 2017, with no outstanding borrowings against the Company's $300 million credit facility. Included within investments is $213.5 million of holdings of short-term debt securities with maturities between 90 days and one year. During fiscal 2017, the Company used $126.2 million to repurchase and retire approximately 2.9 million shares of its Non-Voting Common Stock under its repurchase authorizations. Of the current 8.0 million share repurchase authorization, approximately 6.1 million shares remain available. The Company began consolidating a new warehouse-stage CLO entity in the fourth quarter of fiscal 2017.

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 fiscal year ended October 31, 2017. To participate in the conference call, please dial 866-521-4909 (domestic) or 647-427-2311 (international) and refer to "Eaton Vance Corp. Fourth Fiscal 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 800-585-8367 (domestic) or 416-621-4642 (international) or by accessing Eaton Vance's website, eatonvance.com. To listen to the replay, enter the conference ID number 4999047 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, specifically, adjusted net income attributable to Eaton Vance Corp. shareholders and adjusted earnings per diluted share, while not a substitute for GAAP financial measures, may be effective indicators of the Company's performance over time. In calculating these non-GAAP financial measures, net income attributable to Eaton Vance Corp. shareholders and earnings per diluted share are adjusted to exclude items management deems non-operating or non-recurring in nature or otherwise outside the ordinary course of business. These adjustments may include the add back of adjustments made 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), and, when applicable, other items such as closed-end fund structuring fees, special dividends, costs associated with retiring debt and tax settlements. Management and our 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.

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

			Three Months Ended										Fiscal Year Ended
									%		%
									Change		Change
									Q4 2017		Q4 2017
			October 31,		July 31,		October 31,		vs.		vs.		October 31,		October 31,		%
			2017		2017		2016		Q3 2017		Q4 2016		2017		2016		Change
Revenue:
	Management fees		$	351,993	$	339,866	$	298,459	4	%	18	%	$	1,318,141	$	1,151,198	15	%
	Distribution and underwriter fees			19,785		20,114		18,606	(2)		6			78,776		74,822	5
	Service fees			30,469		30,515		27,481	-		11			119,962		107,684	11
	Other revenue			3,426		3,251		2,300	5		49			12,131		9,156	32
		Total revenue		405,673		393,746		346,846	3		17			1,529,010		1,342,860	14
Expenses:
	Compensation and related costs			141,012		142,338		125,259	(1)		13			553,952		491,115	13
	Distribution expense			32,589		37,160		29,658	(12)		10			132,873		117,996	13
	Service fee expense			29,135		28,630		25,458	2		14			112,519		98,494	14
	Amortization of deferred sales commissions			4,177		4,182		3,589	-		16			16,239		15,451	5
	Fund-related expenses			12,243		14,029		9,766	(13)		25			48,995		35,899	36
	Other expenses			48,146		46,376		41,966	4		15			181,674		169,637	7
		Total expenses		267,302		272,715		235,696	(2)		13			1,046,252		928,592	13
Operating income				138,371		121,031		111,150	14		24			482,758		414,268	17
Non-operating income (expense):
	Gains and other investment income, net			3,984		5,537		2,645	(28)		51			19,303		12,411	56
	Interest expense			(5,904)		(6,180)		(7,386)	(4)		(20)			(27,496)		(29,410)	(7)
	Loss on extinguishment of debt			-		(5,396)		-	(100)		NM			(5,396)		-	NM
	Other income (expense) of consolidated
		collateralized loan obligation (CLO) entity:
		Gains and other investment income, net		-		-		2,415	NM		(100)			-		24,069	(100)
		Interest expense		-		-		(4,179)	NM		(100)			-		(13,286)	(100)
		Total non-operating expense		(1,920)		(6,039)		(6,505)	(68)		(70)			(13,589)		(6,216)	119

Income before income taxes and equity
in net income of affiliates				136,451		114,992		104,645	19		30			469,169		408,052	15
Income taxes				(49,802)		(42,462)		(40,837)	17		22			(173,666)		(153,630)	13
Equity in net income of affiliates, net of tax				2,897		2,323		2,488	25		16			10,870		10,335	5
Net income				89,546		74,853		66,296	20		35			306,373		264,757	16
Net income attributable to non-controlling
and other beneficial interests				(7,462)		(7,492)		(1,241)	-		501			(24,242)		(23,450)	3
Net income attributable to
Eaton Vance Corp. shareholders			$	82,084	$	67,361	$	65,055	22		26		$	282,131	$	241,307	17

Earnings per share:
	Basic		$	0.73	$	0.61	$	0.59	20		24		$	2.54	$	2.20	15
	Diluted		$	0.69	$	0.58	$	0.57	19		21		$	2.42	$	2.12	14

Weighted average shares outstanding:
	Basic			112,499		111,284		109,341	1		3			110,918		109,914	1
	Diluted			118,823		117,051		114,074	2		4			116,418		113,982	2

Dividends declared per share			$	0.310	$	0.280	$	0.280	11		11		$	1.150	$	1.075	7

														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
(in thousands, except per share figures)

		Three Months Ended											Fiscal Year Ended
									%		%
									Change		Change
									Q4 2017		Q4 2017
		October 31,		July 31,		October 31,			vs.		vs.		October 31,		October 31,			%
		2017		2017		2016			Q3 2017		Q4 2016		2017		2016			Change

Net income attributable to Eaton
	Vance Corp. shareholders	$	82,084	$	67,361	$	65,055		22	%	26	%	$	282,131	$	241,307		17	%

Non-controlling interest value adjustments			602		3		77		NM		682			531		200		166

Closed-end fund structuring fees, net of tax			40⁽¹⁾		2,139⁽¹⁾		-		(98)		NM			2,179⁽¹⁾		1,401⁽²⁾		56

Loss on extinguishment of debt, net of tax			-		3,346⁽³⁾		-		(100)		NM			3,346⁽³⁾		-		NM

Adjusted net income attributable
	to Eaton Vance Corp. shareholders	$	82,726	$	72,849	$	65,132		14		27		$	288,187	$	242,908		19

Earnings per diluted share		$	0.69	$	0.58	$	0.57		19		21		$	2.42	$	2.12		14

Non-controlling interest value adjustments			0.01		-		-		NM		NM			0.01		-		NM

Closed-end fund structuring fees, net of tax			-		0.01		-		(100)		NM			0.02		0.01		100

Loss on extinguishment of debt, net of tax			-		0.03		-		(100)		NM			0.03		-		NM


Adjusted earnings per diluted share		$	0.70	$	0.62	$	0.57		13		23		$	2.48	$	2.13		16


Eaton Vance Corp.
Reconciliation of operating income and operating margin
to adjusted operating income and adjusted operating margin
(in thousands)

		Three Months Ended											Fiscal Year Ended
									%		%
									Change		Change
									Q4 2017		Q4 2017
		October 31,		July 31,		October 31,			vs.		vs.		October 31,		October 31,			%
		2017		2017		2016			Q3 2017		Q4 2016		2017		2016			Change

Operating income		$	138,371	$	121,031	$	111,150		14	%	24	%	$	482,758	$	414,268		17	%

Closed-end fund structuring fees			65⁽¹⁾		3,450⁽¹⁾		-		(98)		NM			3,515⁽¹⁾		2,291⁽²⁾		53


Adjusted operating income		$	138,436	$	124,481	$	111,150		11		25		$	486,273	$	416,559		17

Operating margin			34.1	%	30.7	%	32.0	%	11		7			31.6	%	30.8	%	3

Closed-end fund structuring fees			-		0.9		-		(100)		NM			0.2		0.2		-


Adjusted operating margin			34.1	%	31.6	%	32.0	%	8		7			31.8	%	31.0	%	3

⁽¹⁾

Reflects structuring fees paid in connection with the July 2017 initial public offering of Eaton Vance Floating-Rate 2022 Target Term Trust. The Company paid total structuring fees of $3.5 million related to the offering, net of the associated impact to taxes of $1.3 million.

⁽²⁾

Reflects structuring fees paid in connection with the May 2016 initial public offering of Eaton Vance High Income 2021 Target Term Trust. The Company paid total structuring fees of $2.3 million related to the offering, net of the associated impact to taxes of $0.9 million.

⁽³⁾

Reflects the $5.4 million loss on extinguishment of debt associated with retiring the Company's 2017 Senior Notes in May 2017, net of the associated impact to taxes of $2.1 million.

													Attachment 3
Eaton Vance Corp
Components of net income attributable
to non-controlling and other beneficial interests
(in thousands)

		Three Months Ended										Fiscal Year Ended
								%		%
								Change		Change
								Q4 2017		Q4 2017
		October 31,		July 31,		October 31,		vs		vs		October 31,		October 31,		%
		2017		2017		2016		Q3 2017		Q4 2016		2017		2016		Change

Consolidated sponsored funds		$	1,980	$	3,124	$	(370)	(37)	%	NM	%	$	6,816	$	(43)	NM	%

Majority-owned subsidiaries			4,880		4,365		3,775	12		29			16,895		13,525	25

Non-controlling interest value adjustments			602		3		77	NM		682			531		200	166

Consolidated CLO entity			-		-		(2,241)	NM		(100)			-		9,768	(100)

Net income attributable to non-controlling
	and other beneficial interests	$	7,462	$	7,492	$	1,241	-		501		$	24,242	$	23,450	3

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

			October 31,		October 31,
			2017		2016⁽¹⁾
	Assets

	Cash and cash equivalents	$	610,555	$	424,174
	Management fees and other receivables		200,453		186,172
	Investments		898,192		589,773
	Assets of consolidated CLO entity:
	Bank loan investments		31,348		-
	Deferred sales commissions		36,423		27,076
	Deferred income taxes		67,100		73,295
	Equipment and leasehold improvements, net		48,989		44,427
	Intangible assets, net		89,812		46,809
	Goodwill		259,681		248,091
	Loan to affiliate		5,000		5,000
	Other assets		83,348		85,565
	Total assets	$	2,330,901	$	1,730,382

	Liabilities, Temporary Equity and Permanent Equity

	Liabilities:

	Accrued compensation	$	207,330	$	173,485
	Accounts payable and accrued expenses		68,115		59,927
	Dividend payable		44,634		36,525
	Debt		618,843		571,773
	Liabilities of consolidated CLO entity:
	Line of credit		12,598		-
	Other liabilities		116,298		75,069
	Total liabilities		1,067,818		916,779

	Commitments and contingencies

	Temporary Equity:
	Redeemable non-controlling interests		250,823		109,028
	Total temporary equity		250,823		109,028

	Permanent Equity:
	Voting Common Stock, par value $0.00390625 per share:
	Authorized, 1,280,000 shares
	Issued and outstanding, 442,932 and 442,932 shares, respectively		2		2
	Non-Voting Common Stock, par value $0.00390625 per share:
	Authorized, 190,720,000 shares
	Issued and outstanding, 118,077,872 and 113,545,008 shares, respectively		461		444
	Additional paid-in capital		148,284		-
	Notes receivable from stock option exercises		(11,112)		(12,074)
	Accumulated other comprehensive loss		(47,474)		(57,583)
	Retained earnings		921,235		773,000
	Total Eaton Vance Corp. shareholders' equity		1,011,396		703,789
	Non-redeemable non-controlling interests		864		786
	Total permanent equity		1,012,260		704,575
	Total liabilities, temporary equity and permanent equity	$	2,330,901	$	1,730,382

⁽¹⁾	On November 1, 2016 the Company adopted Accounting Standard Update 2015-03, which requires certain debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. The October 31, 2016 Balance Sheet shown above reflects the reclassification of $2.2 million of debt issuance costs from Other assets to Debt.

									Attachment 5
Eaton Vance Corp.
Consolidated Assets under Management and Net Flows by Investment Mandate⁽¹⁾⁽²⁾
(in millions)

		Three Months Ended						Fiscal Year Ended
		October 31,		July 31,		October 31,		October 31,		October 31,
		2017		2017		2016		2017		2016
Equity assets – beginning of period⁽³⁾⁽⁴⁾		$	110,198	$	104,666	$	91,826	$	89,981	$	89,890
	Sales and other inflows		5,156		5,745		3,833		21,111		15,321
	Redemptions/outflows		(5,511)		(4,259)		(3,795)		(19,828)		(15,668)
	Net flows		(355)		1,486		38		1,283		(347)
	Assets acquired⁽⁵⁾		-		-		-		5,704		-
	Exchanges		2		7		(14)		62		(32)
	Market value change		3,627		4,039		(1,869)		16,442		470
Equity assets – end of period		$	113,472	$	110,198	$	89,981	$	113,472	$	89,981
Fixed income assets – beginning of period⁽⁴⁾⁽⁶⁾			68,708		66,881		59,371		60,607		52,465
	Sales and other inflows		5,256		5,516		4,716		22,097		20,451
	Redemptions/outflows		(3,131)		(4,178)		(3,042)		(16,137)		(13,033)
	Net flows		2,125		1,338		1,674		5,960		7,418
	Assets acquired⁽⁵⁾		-		-		-		4,170		-
	Exchanges		8		(2)		(21)		(139)		23
	Market value change		(44)		491		(417)		199		701
Fixed income assets – end of period		$	70,797	$	68,708	$	60,607	$	70,797	$	60,607
Floating-rate income assets – beginning of period⁽⁴⁾			38,754		36,957		32,397		32,107		35,534
	Sales and other inflows		2,348		3,567		1,835		15,222		7,232
	Redemptions/outflows		(1,927)		(2,113)		(2,426)		(8,889)		(11,078)
	Net flows		421		1,454		(591)		6,333		(3,846)
	Exchanges		(10)		(8)		28		136		(16)
	Market value change		(346)		351		273		243		435
Floating-rate income assets – end of period		$	38,819	$	38,754	$	32,107	$	38,819	$	32,107
Alternative assets – beginning of period⁽⁴⁾			11,877		11,212		9,961		10,687		10,289
	Sales and other inflows		2,384		1,359		1,168		5,930		4,183
	Redemptions/outflows		(1,716)		(666)		(513)		(4,067)		(3,590)
	Net flows		668		693		655		1,863		593
	Exchanges		3		-		(3)		(4)		(2)
	Market value change		89		(28)		74		91		(193)
Alternative assets – end of period		$	12,637	$	11,877	$	10,687	$	12,637	$	10,687
Portfolio implementation assets – beginning of period			93,285		86,376		72,428		71,426		59,487
	Sales and other inflows		5,199		5,869		3,079		23,359		19,882
	Redemptions/outflows		(3,178)		(2,790)		(3,202)		(12,438)		(10,455)
	Net flows		2,021		3,079		(123)		10,921		9,427
	Exchanges		-		5		11		5		(3)
	Market value change		4,309		3,825		(890)		17,263		2,515
Portfolio implementation assets – end of period		$	99,615	$	93,285	$	71,426	$	99,615	$	71,426
Exposure management assets – beginning of period			82,763		80,921		68,407		71,572		63,689
	Sales and other inflows		24,239		17,734		20,458		80,532		57,988
	Redemptions/outflows		(21,161)		(16,649)		(17,268)		(69,058)		(51,929)
	Net flows		3,078		1,085		3,190		11,474		6,059
	Market value change		1,135		757		(25)		3,930		1,824
Exposure management assets – end of period⁽²⁾		$	86,976	$	82,763	$	71,572	$	86,976	$	71,572
Total assets under management – beginning of period			405,585		387,013		334,390		336,380		311,354
	Sales and other inflows		44,582		39,790		35,089		168,251		125,057
	Redemptions/outflows		(36,624)		(30,655)		(30,246)		(130,417)		(105,753)
	Net flows		7,958		9,135		4,843		37,834		19,304
	Assets acquired⁽⁵⁾		-		-		-		9,874		-
	Exchanges		3		2		1		60		(30)
	Market value change		8,770		9,435		(2,854)		38,168		5,752
Total assets under management – end of period		$	422,316	$	405,585	$	336,380	$	422,316	$	336,380

⁽¹⁾

Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc.

⁽²⁾

Reported consolidated assets under management and net flows exclude client positions in exposure management mandates identified as transitory in nature. Such positions totaled $12.6 billion as of July 31, 2017. The Company did not manage any such client positions as of October 31, 2017 or October 31, 2016.

⁽³⁾

Includes balanced and multi-asset mandates.

⁽⁴⁾

In fiscal 2017, the Company reclassified among investment mandates certain managed assets and flows. The above presentation of prior year results has been revised for comparability purposes. The reclassification does not affect total consolidated assets under management or total consolidated net flows for any period.

⁽⁵⁾

Managed assets gained in the acquisition of the business assets of Calvert on December 30, 2016. Equity category and total acquired assets under management exclude $2.1 billion of managed assets of Calvert Equity Portfolio sub-advised by Atlanta Capital that were previously included in the Company's consolidated managed assets as institutional separate account managed assets.

⁽⁶⁾

Includes cash management mandates.

									Attachment 6
Eaton Vance Corp.
Consolidated Assets under Management and Net Flows by Investment Vehicle⁽¹⁾⁽²⁾
(in millions)

		Three Months Ended						Fiscal Year Ended
		October 31,		July 31,		October 31,		October 31,		October 31,
		2017		2017		2016		2017		2016
Fund assets – beginning of period⁽³⁾		$	152,734	$	147,341	$	126,359	$	125,722	$	125,934
	Sales and other inflows		10,303		9,736		7,083		40,967		29,890
	Redemptions/outflows		(8,404)		(7,641)		(6,594)		(33,350)		(29,535)
	Net flows		1,899		2,095		489		7,617		355
	Assets acquired⁽⁴⁾		-		-		-		9,821		-
	Exchanges⁽⁵⁾		10		2		(10)		2,196		(94)
	Market value change		2,210		3,296		(1,116)		11,497		(473)
Fund assets – end of period		$	156,853	$	152,734	$	125,722	$	156,853	$	125,722
Institutional separate account assets – beginning of period			154,253		149,044		134,580		136,451		119,987
	Sales and other inflows		26,615		21,227		23,135		93,067		74,476
	Redemptions/outflows		(24,112)		(19,109)		(20,873)		(81,096)		(62,945)
	Net flows		2,503		2,118		2,262		11,971		11,531
	Assets acquired⁽⁴⁾		-		-		-		40		-
	Exchanges⁽⁵⁾		(8)		-		-		(2,063)		420
	Market value change		3,238		3,091		(391)		13,587		4,513
Institutional separate account assets – end of period⁽²⁾		$	159,986	$	154,253	$	136,451	$	159,986	$	136,451
High-net-worth separate account assets – beginning of period			36,439		33,225		25,823		25,806		24,516
	Sales and other inflows		3,138		3,103		1,249		12,965		5,832
	Redemptions/outflows		(1,477)		(1,347)		(844)		(5,370)		(4,841)
	Net flows		1,661		1,756		405		7,595		991
	Exchanges		7		4		28		(24)		(309)
	Market value change		1,608		1,454		(450)		6,338		608
High-net-worth separate account assets – end of period		$	39,715	$	36,439	$	25,806	$	39,715	$	25,806
Retail managed account assets – beginning of period			62,159		57,403		47,628		48,401		40,917
	Sales and other inflows		4,526		5,724		3,622		21,252		14,859
	Redemptions/outflows		(2,631)		(2,558)		(1,935)		(10,601)		(8,432)
	Net flows		1,895		3,166		1,687		10,651		6,427
	Assets acquired⁽⁴⁾		-		-		-		13		-
	Exchanges		(6)		(4)		(17)		(49)		(47)
	Market value change		1,714		1,594		(897)		6,746		1,104
Retail managed account assets – end of period		$	65,762	$	62,159	$	48,401	$	65,762	$	48,401
Total assets under management – beginning of period			405,585		387,013		334,390		336,380		311,354
	Sales and other inflows		44,582		39,790		35,089		168,251		125,057
	Redemptions/outflows		(36,624)		(30,655)		(30,246)		(130,417)		(105,753)
	Net flows		7,958		9,135		4,843		37,834		19,304
	Assets acquired⁽⁴⁾		-		-		-		9,874		-
	Exchanges		3		2		1		60		(30)
	Market value change		8,770		9,435		(2,854)		38,168		5,752
Total assets under management – end of period		$	422,316	$	405,585	$	336,380	$	422,316	$	336,380

⁽¹⁾

Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc.

⁽²⁾

Reported consolidated assets under management and net flows exclude client positions in exposure management mandates identified as transitory in nature. Such positions (held as institutional separate accounts) totaled $12.6 billion as of July 31, 2017. The Company did not manage any such client positions as of October 31, 2017 or October 31, 2016.

⁽³⁾

Includes assets in cash management funds.

⁽⁴⁾

Managed assets gained in the acquisition of the business assets of Calvert on December 30, 2016. Fund category and total acquired assets under management exclude $2.1 billion of managed assets of Calvert Equity Portfolio sub-advised by Atlanta Capital that were previously included in the Company's consolidated managed assets as institutional separate account managed assets.

⁽⁵⁾

Reflects the reclassification from institutional separate accounts to funds of $2.1 billion of managed assets of Calvert Equity Portfolio sub-advised by Atlanta Capital upon the Company's acquisition of the business assets of Calvert on December 30, 2016.

							Attachment 7
Eaton Vance Corp.
Consolidated Assets under Management by Investment Mandate⁽¹⁾⁽²⁾
(in millions)

		October 31,		July 31,	%		October 31,	%
		2017		2017	Change		2016	Change
Equity⁽³⁾⁽⁴⁾	$	113,472	$	110,198	3%	$	89,981	26%
Fixed income⁽⁴⁾⁽⁵⁾		70,797		68,708	3%		60,607	17%
Floating-rate income⁽⁴⁾		38,819		38,754	0%		32,107	21%
Alternative⁽⁴⁾		12,637		11,877	6%		10,687	18%
Portfolio implementation		99,615		93,285	7%		71,426	39%
Exposure management⁽²⁾		86,976		82,763	5%		71,572	22%
Total	$	422,316	$	405,585	4%	$	336,380	26%

⁽¹⁾ Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc.

⁽²⁾ Reported consolidated assets under management exclude client positions in exposure management mandates identified as transitory in nature. Such positions totaled $12.6 billion as of July 31, 2017. The Company did not manage any such client positions as of October 31, 2017 or October 31, 2016.

⁽³⁾ Includes balanced and multi-asset mandates.

⁽⁴⁾ In fiscal 2017, the Company reclassified among investment mandates certain managed assets. The above presentation of prior year results has been revised for comparability purposes. The reclassification does not affect total consolidated assets under management for any period.

⁽⁵⁾ Includes cash management mandates.

							Attachment 8
Eaton Vance Corp.
Consolidated Assets under Management by Investment Vehicle⁽¹⁾⁽²⁾
(in millions)

		October 31,		July 31,	%		October 31,	%
		2017		2017	Change		2016	Change
Open-end funds⁽³⁾⁽⁴⁾	$	97,601	$	95,797	2%	$	74,721	31%
Closed-end funds⁽⁵⁾		24,816		24,648	1%		23,571	5%
Private funds⁽⁶⁾		34,436		32,289	7%		27,430	26%
Institutional separate account assets⁽²⁾⁽⁴⁾		159,986		154,253	4%		136,451	17%
High-net-worth separate account assets		39,715		36,439	9%		25,806	54%
Retail managed account assets		65,762		62,159	6%		48,401	36%
Total	$	422,316	$	405,585	4%	$	336,380	26%

⁽¹⁾ Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc.

⁽²⁾ Reported consolidated assets under management exclude client positions in exposure management mandates identified as transitory in nature. Such positions (held as institutional separate accounts) totaled $12.6 billion as of July 31, 2017. The Company did not manage any such client positions as of October 31, 2017 or October 31, 2016.

⁽³⁾ Includes assets in NextShares funds.

⁽⁴⁾ Reflects the reclassification from institutional separate accounts to open-end funds of $2.1 billion of managed assets of Calvert Equity Portfolio sub-advised by Atlanta Capital upon the Company's acquisition of the business assets of Calvert on December 30, 2016.

⁽⁵⁾ Includes unit investment trusts.

⁽⁶⁾ Includes privately offered equity, fixed income and floating-rate income funds and CLO entities.

							Attachment 9
Eaton Vance Corp.
Consolidated Assets under Management by Investment Affiliate⁽¹⁾⁽²⁾
(in millions)

		October 31,		July 31,	%		October 31,	%
		2017		2017	Change		2016	Change
Eaton Vance Management⁽³⁾⁽⁴⁾	$	164,257	$	160,570	2%	$	143,918	14%
Parametric⁽²⁾⁽⁴⁾		224,941		213,213	6%		173,981	29%
Atlanta Capital⁽⁴⁾⁽⁵⁾		22,379		21,476	4%		18,481	21%
Calvert Research and Management⁽⁵⁾		10,739		10,326	4%		-	NM
Total	$	422,316	$	405,585	4%	$	336,380	26%

⁽¹⁾ Consolidated Eaton Vance Corp. See Attachment 11 for managed assets and flows of 49 percent-owned Hexavest Inc.

⁽²⁾ Reported consolidated assets under management exclude client positions in exposure management mandates identified as transitory in nature. Such positions (managed by Parametric) totaled $12.6 billion as of July 31, 2017. The Company did not manage any such client positions as of October 31, 2017 or October 31, 2016.

⁽³⁾ Includes managed assets of Eaton Vance-sponsored funds and accounts managed by Hexavest and unaffiliated third-party advisers under Eaton Vance supervision.

⁽⁴⁾ In fiscal 2017, the Company reclassified among investment affiliates certain managed assets. The above presentation of prior year results has been revised for comparability purposes. The reclassification does not affect total consolidated assets under management for any period.

⁽⁵⁾ Consistent with the Company's policies for reporting the managed assets and flows of investment portfolios for which multiple Eaton Vance affiliates have management responsibilities, the managed assets of Atlanta Capital indicated above include the assets of Calvert Equity Portfolio, for which Atlanta Capital serves as sub-adviser. The total managed assets of Calvert Research and Management, including assets sub-advised by other Eaton Vance affiliates, were $12.9 billion and $12.5 billion as of October 31, 2017 and July 31, 2017, respectively.

Attachment 10
Eaton Vance Corp.
Average Annualized Management Fee Rates by Investment Mandate^(1)(2)(3)
(in basis points on average managed assets)

	Three Months Ended					Fiscal Year Ended
				%	%
				Change	Change
				Q4 2017	Q4 2017
	October 31,	July 31,	October 31,	vs.	vs.	October 31,	October 31,	%
	2017	2017	2016	Q3 2017	Q4 2016	2017	2016	Change
Equity⁽⁴⁾	60.7	61.5	63.3	-1%	-4%	61.7	62.8	-2%
Fixed income⁽⁴⁾	37.1	37.7	39.2	-2%	-5%	38.0	40.0	-5%
Floating-rate income⁽⁴⁾	51.5	50.7	51.8	2%	-1%	51.6	51.8	0%
Alternative⁽⁴⁾	64.2	63.2	63.7	2%	1%	63.3	63.0	0%
Portfolio implementation	14.8	14.6	14.5	1%	2%	14.7	14.9	-1%
Exposure management⁽²⁾	5.3	5.1	4.9	4%	8%	5.2	5.1	2%
Consolidated average
annualized fee rates	33.9	34.2	35.0	-1%	-3%	34.5	35.8	-4%

⁽¹⁾	Excludes performance-based fees, which were -$0.3 million for the three months ended October 31, 2017, $0.5 million for the three months ended July 31, 2017, $0.6 million for the three months ended October 31, 2016, $0.4 million for the fiscal year ended October 31, 2017 and $3.4 million for the fiscal year ended October 31, 2016.

⁽²⁾	Excludes management fees attributable to client positions in exposure management mandates identified as transitory in nature.

⁽³⁾	In fiscal 2017, the Company modified its methodology for calculating average annualized management fee rates for quarterly periods to remove the effect of variations in the number of days in a given quarter. The above presentation of prior year results has been revised for comparability purposes.

⁽⁴⁾	In fiscal 2017, the Company reclassified among investment mandates certain managed assets. The above presentation of prior year results has been revised for comparability purposes.

Attachment 11
Eaton Vance Corp.
Hexavest Inc. Assets under Management and Net Flows
(in millions)

		Three Months Ended						Fiscal Year Ended
		October 31,		July 31,		October 31,		October 31,		October 31,
		2017		2017		2016		2017		2016
Eaton Vance distributed:
Eaton Vance sponsored funds – beginning of period⁽¹⁾		$	151	$	262	$	231	$	231	$	229
	Sales and other inflows		30		29		10		92		22
	Redemptions/outflows		(3)		(147)		(1)		(177)		(33)
	Net flows		27		(118)		9		(85)		(11)
	Market value change		4		7		(9)		36		13
Eaton Vance sponsored funds – end of period		$	182	$	151	$	231	$	182	$	231
Eaton Vance distributed separate accounts –
beginning of period⁽²⁾		$	2,655	$	2,138	$	2,658	$	2,492	$	2,440
	Sales and other inflows		399		455		77		1,124		131
	Redemptions/outflows		(17)		(23)		(142)		(920)		(236)
	Net flows		382		432		(65)		204		(105)
	Market value change		55		85		(101)		396		157
Eaton Vance distributed separate accounts – end of period		$	3,092	$	2,655	$	2,492	$	3,092	$	2,492
Total Eaton Vance distributed – beginning of period		$	2,806	$	2,400	$	2,889	$	2,723	$	2,669
	Sales and other inflows		429		484		87		1,216		153
	Redemptions/outflows		(20)		(170)		(143)		(1,097)		(269)
	Net flows		409		314		(56)		119		(116)
	Market value change		59		92		(110)		432		170
Total Eaton Vance distributed – end of period		$	3,274	$	2,806	$	2,723	$	3,274	$	2,723
Hexavest directly distributed – beginning of period⁽³⁾		$	12,638	$	12,065	$	11,522	$	11,021	$	11,279
	Sales and other inflows		290		249		375		1,140		985
	Redemptions/outflows		(393)		(210)		(413)		(1,208)		(1,919)
	Net flows		(103)		39		(38)		(68)		(934)
	Market value change		213		534		(463)		1,795		676
Hexavest directly distributed – end of period		$	12,748	$	12,638	$	11,021	$	12,748	$	11,021
Total Hexavest managed assets – beginning of period		$	15,444	$	14,465	$	14,411	$	13,744	$	13,948
	Sales and other inflows		719		733		462		2,356		1,138
	Redemptions/outflows		(413)		(380)		(556)		(2,305)		(2,188)
	Net flows		306		353		(94)		51		(1,050)
	Market value change		272		626		(573)		2,227		846
Total Hexavest managed assets – end of period		$	16,022	$	15,444	$	13,744	$	16,022	$	13,744

⁽¹⁾

Managed assets and flows of Eaton Vance-sponsored pooled investment vehicles for which Hexavest is adviser or sub-adviser. Eaton Vance receives management fees (and in some cases also distribution fees) on these assets, which are included in the Eaton Vance consolidated assets under management and flows in Attachments 5 through 9.

⁽²⁾

Managed assets and flows of Eaton Vance-distributed separate accounts managed by Hexavest. Eaton Vance receives distribution fees, but not management fees, on these assets, which are not included in the Eaton Vance consolidated assets under management and flows 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 management fees or distribution fees on these assets, which are not included in the Eaton Vance consolidated assets under management and flows in Attachments 5 through 9.

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SOURCE Eaton Vance Corp.

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