BOSTON, Feb. 26, 2020 /PRNewswire/ -- Eaton Vance
Corp. (NYSE: EV) today reported earnings per diluted share of
$0.91 for the first quarter of fiscal
2020, an increase of 21 percent from $0.75 of earnings per diluted share in the first
quarter of fiscal 2019 and a decrease of 5 percent from
$0.96 of earnings per diluted share
in the fourth quarter of fiscal 2019.
The Company reported adjusted earnings per diluted
share(1) of $0.86 for the first quarter of fiscal 2020, an
increase of 18 percent from $0.73 of
adjusted earnings per diluted share in the first quarter of fiscal
2019 and a decrease of 9 percent from $0.95 of adjusted earnings per diluted share in
the fourth quarter of fiscal 2019. Earnings under U.S. generally
accepted accounting principles (U.S. GAAP) exceeded adjusted
earnings by $0.05 per diluted share
in the first quarter of fiscal 2020, $0.02 per diluted share in the first quarter of
fiscal 2019 and $0.01 per diluted
share in the fourth quarter of fiscal 2019, reflecting the reversal
of net excess tax benefits related to stock‐based compensation
awards of $4.9 million, $2.9 million and $1.5
million, respectively.
On a combined basis, net gains and other investment income
related to seed capital investments and other income and expense
amounts related to consolidated collateralized loan obligation
(CLO) entities contributed $0.03 to
earnings per diluted share in the first quarter of fiscal 2020,
reduced earnings by $0.02 per diluted
share in the first quarter of fiscal 2019 and contributed
$0.08 to earnings per diluted share
in the fourth quarter of fiscal 2019.
Consolidated net inflows of $6.1
billion in the first quarter of fiscal 2020 represent 5
percent annualized internal growth in managed assets (consolidated
net inflows divided by beginning of period consolidated assets
under management). This compares to net inflows of $1.5 billion and 1 percent annualized internal
growth in managed assets in the first quarter of fiscal 2019 and
net inflows of $9.8 billion and 8
percent annualized internal growth in managed assets in the fourth
quarter of fiscal 2019. Excluding Parametric overlay services
(formerly "exposure management"), the Company's annualized internal
growth in managed assets was 5 percent in the first quarter of
fiscal 2020, 2 percent in the first quarter of fiscal 2019 and 3
percent in the fourth quarter of fiscal 2019.
The Company's annualized internal management fee revenue growth
(management fees attributable to consolidated inflows less
management fees attributable to consolidated outflows, divided by
beginning of period consolidated management fee revenue) was 5
percent in the first quarter of fiscal 2020, -4 percent in the
first quarter of fiscal 2019 and 2 percent in the fourth quarter of
fiscal 2019.
Consolidated assets under management were a record $518.2 billion on January
31, 2020, up 17 percent from $444.7
billion of consolidated managed assets on January 31, 2019 and up 4 percent from
$497.4 billion of consolidated
managed assets on October 31, 2019.
The year-over-year increase in consolidated assets under management
reflects net inflows of $28.6 billion
and market price appreciation of $45.0
billion. The sequential quarterly increase in consolidated
assets under management reflects net inflows of $6.1 billion and market price appreciation of
$14.6 billion in the first quarter of
fiscal 2020.
"Continuing strong net flows across equity, fixed income and
Parametric custom portfolio mandates and much-improved
floating-rate income and alternative category net flows combined to
produce solid internal growth in management fee revenue for Eaton
Vance in the first quarter of fiscal 2020," said Thomas E. Faust Jr., Chairman and Chief
Executive Officer. "Compared to asset management industry peers,
our growth profile continues to stand apart."
Average consolidated assets under management were $509.9 billion in the first quarter of fiscal
2020, up 17 percent from $437.4
billion in the first quarter of fiscal 2019 and up 4 percent
from $488.9 billion in the fourth
quarter of fiscal 2019.
As shown in Attachment 10, excluding performance-based fees,
annualized management fee rates on consolidated assets under
management averaged 30.8 basis points in the first quarter of
fiscal 2020, down 4 percent from 32.0 basis points in the first
quarter of fiscal 2019 and substantially unchanged from the fourth
quarter of fiscal 2019. Changes in average annualized management
fee rates for the compared periods primarily reflect shifts in the
Company's mix of business.
Attachments 5 and 6 summarize the Company's consolidated assets
under management and net flows by investment mandate and investment
vehicle reporting categories. 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 management fee rates by
investment mandate. Prior-period consolidated assets under
management, net flows and average annualized management fee rates
by investment mandate included in Attachments 5, 7 and 10 have been
revised to reflect the reclassification of benchmark-based fixed
income separate accounts from fixed income to Parametric custom
portfolios. Prior-period consolidated assets under management by
investment affiliate included in Attachment 9 have been revised to
reflect the shift in management responsibilities for the Company's
systematically managed fixed income strategies from Eaton Vance
Management to Parametric in the first quarter of fiscal 2020 and
the adoption of a new policy to report the managed assets of
investment portfolios overseen by multiple Eaton Vance affiliates
based on the strategy's primary identity. None of these
reclassifications affected the Company's overall consolidated
assets under management, net flows or average annualized management
fee rates for any of the reported periods.
As shown in Attachments 5 and 6, consolidated sales and other
inflows were $46.3 billion in the
first quarter of fiscal 2020, up 4 percent from $44.7 billion in the first quarter of fiscal 2019
and down 1 percent from $46.6 billion
in the fourth quarter of fiscal 2019.
Consolidated redemptions and other outflows were $40.2 billion in the first quarter of fiscal
2020, down 7 percent from $43.2
billion in the first quarter of fiscal 2019 and up 9 percent
from $36.8 billion in the fourth
quarter of fiscal 2019.
As of January 31, 2020, the
Company's 49 percent-owned affiliate Hexavest Inc. (Hexavest)
managed $13.0 billion of client
assets, down 2 percent from $13.2
billion of managed assets on January
31, 2019 and down 3 percent from $13.4 billion of managed assets on October 31, 2019. Hexavest had net outflows of
$0.5 billion in the first quarter of
fiscal 2020, net outflows of $0.7
billion in the first quarter of fiscal 2019 and net outflows
of $0.4 billion in the fourth quarter
of fiscal 2019. Attachment 11 summarizes the assets under
management and net flows of Hexavest. Other than Eaton
Vance-sponsored funds for which Hexavest is the adviser or
sub-adviser, the managed assets and flows of Hexavest are not
included in our consolidated totals.
Financial
Highlights
|
|
|
|
|
(in thousands,
except per share figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
January
31,
|
October
31,
|
January
31,
|
|
2020
|
2019
|
2019
|
Revenue
|
$
|
452,554
|
$
|
433,740
|
$
|
406,416
|
Expenses
|
|
317,835
|
|
298,307
|
|
285,286
|
Operating
income
|
|
134,719
|
|
135,433
|
|
121,130
|
Operating margin
|
|
29.8%
|
|
31.2%
|
|
29.8%
|
Non-operating income
(expense)
|
|
8,369
|
|
15,599
|
|
(3,193)
|
Income
taxes
|
|
(32,578)
|
|
(34,254)
|
|
(27,625)
|
Equity in net income
of affiliates, net of tax
|
|
2,325
|
|
2,172
|
|
1,948
|
Net income
|
|
112,835
|
|
118,950
|
|
92,260
|
Net income
attributable to non-controlling
|
|
|
|
|
|
|
and
other beneficial interests
|
|
(8,850)
|
|
(9,744)
|
|
(5,459)
|
Net income
attributable to
|
|
|
|
|
|
|
Eaton
Vance Corp. shareholders
|
$
|
103,985
|
$
|
109,206
|
$
|
86,801
|
Adjusted net income
attributable to
|
|
|
|
|
|
|
Eaton
Vance Corp. shareholders
|
$
|
99,125
|
$
|
107,665
|
$
|
83,852
|
Earnings per diluted
share
|
$
|
0.91
|
$
|
0.96
|
$
|
0.75
|
Adjusted earnings per
diluted share
|
$
|
0.86
|
$
|
0.95
|
$
|
0.73
|
First Quarter Fiscal 2020 vs. First Quarter Fiscal
2019
In the first quarter of fiscal 2020, revenue increased 11
percent to $452.6 million from
$406.4 million in the first quarter
of fiscal 2019. Management fees were up 13 percent, as a 17 percent
increase in average consolidated assets under management more than
offset lower consolidated average management fee rates. Performance
fees were $0.2 million in the
first quarter of fiscal 2020 and $(0.3) million in the first
quarter of fiscal 2019. Distribution and service fee revenues were
collectively up 6 percent, reflecting higher managed assets in fund
share classes that are subject to these fees.
Operating expenses increased 11 percent to $317.8 million in the first quarter of fiscal
2020 from $285.3 million in the first
quarter of fiscal 2019, 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 reflects higher salaries and
benefits associated with increases in headcount and higher
operating income-based and investment performance-based bonus
accruals, partially offset by lower sales-based incentive
compensation. The increase in compensation also reflects higher
stock-based compensation expense driven by accelerated vesting of
restricted stock awards and accelerated recognition of employee
stock option expense in connection with employee retirements in the
first quarter of fiscal 2020. The increase in distribution expense
primarily reflects higher marketing and promotion costs and an
increase in up-front sales commission expense, partially offset by
lower Class C distribution fee payments. The increase in service
fee expense reflects higher Class A and private fund service fee
payments, partially offset by lower Class C service fee payments.
The increase in amortization of deferred sales commissions reflects
higher private fund commission amortization, partially offset by
lower Class C commission amortization. The increase in fund-related
expenses reflects higher sub-advisory fees paid. Other operating
expenses increased 11 percent, primarily reflecting increases in
information technology spending, higher professional services
expenses and higher travel expenses, partially offset by a decrease
in amortization expense related to certain intangible assets that
were fully amortized during the first quarter of fiscal 2019.
Operating income increased 11 percent to $134.7 million in the first quarter of fiscal
2020 from $121.1 million in the first
quarter of fiscal 2019. The Company's operating margin was 29.8
percent in both the first quarter of fiscal 2020 and the first
quarter of fiscal 2019.
Non-operating income totaled $8.4
million in the first quarter of fiscal 2020 versus
$3.2 million of non-operating expense
in the first quarter of fiscal 2019. The year-over-year change
primarily reflects a $10.3 million
increase in net gains and other investment income from the
Company's investments in sponsored strategies, including
consolidated sponsored funds, and a $1.1
million decrease in net expense contribution from
consolidated CLO entities.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 22.8 percent in the first quarter of fiscal 2020 and 23.4
percent in the first quarter of fiscal 2019. Adjusted to remove the
effect of net excess tax benefits from stock-based compensation
plans, the Company's effective tax rate, calculated on the same
basis, was 26.2 percent in the first quarter of fiscal 2020 and
25.9 percent in the first quarter of fiscal 2019. The Company's
effective tax rate is discussed in greater detail under "Taxation"
below.
Equity in net income of affiliates was $2.3 million and $1.9
million in the first quarters of fiscal 2020 and 2019,
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 $8.9 million in the first quarter of fiscal 2020
and $5.5 million in the first quarter
of fiscal 2019. The year-over-year change reflects an increase in
income earned by consolidated sponsored funds and the Company's
accelerated repurchase of certain profit and capital interests in
Parametric entities held by current and former employees, which
settled at the end of the fourth quarter of fiscal 2019.
The Company's weighted average basic shares outstanding were
109.4 million in the first quarter of fiscal 2020 and 112.3 million
in the first quarter of fiscal 2019, a decrease of 3 percent. The
year-over-year reduction reflects share repurchases in excess of
new shares issued upon the vesting of restricted stock awards and
the exercise of employee stock options. On a diluted basis, the
Company's weighted average shares outstanding were 114.7 million in
the first quarter of fiscal 2020 and 115.5 million in the first
quarter of fiscal 2019, a decrease of 1 percent. The change in
weighted average diluted shares outstanding in the first quarter of
fiscal 2020 also reflects an increase in the dilutive effect of
in-the-money options and unvested restricted stock awards due to
higher market prices of the Company's shares.
First Quarter Fiscal 2020 vs. Fourth Quarter Fiscal
2019
In the first quarter of fiscal 2020, revenue increased 4 percent
to $452.6 million from $433.7 million in the fourth quarter of fiscal
2019. Management fees were up 4 percent, reflecting a 4 percent
increase in average consolidated assets under management and
substantially unchanged average annualized management fee rates.
Performance fees were $0.2 million in
the first quarter of fiscal 2020 and $0.1
million in the fourth quarter of fiscal 2019. Distribution
and service fee revenues were collectively up 4 percent, reflecting
higher managed assets in fund share classes that are subject to
these fees.
Operating expenses increased 7 percent to $317.8 million in the first quarter of fiscal
2020 from $298.3 million in the
fourth quarter of fiscal 2019, reflecting increases in
compensation, distribution expense, service fee expense,
amortization of deferred sales commissions and other operating
expenses. The increase in compensation reflects higher salary and
benefit expenses associated with a slight increase in headcount,
year-end compensation increases for continuing employees, higher
performance-based and operating income-based bonus accruals, and
seasonal increases in benefit costs and payroll taxes, partially
offset by lower severance expenses. The increase in compensation
also reflects higher stock-based compensation expense driven by
accelerated vesting of restricted stock awards and accelerated
recognition of employee stock option expense in connection with
employee retirements in the first quarter of fiscal 2020. The
increase in distribution expense reflects higher marketing and
promotion costs and an increase in up-front sales commission
expense. The increase in service fee expense reflects higher Class
A and private fund service fee payments. The increase in
amortization of deferred sales commissions reflects higher private
fund commission amortization. Other operating expenses increased 9
percent, primarily reflecting increases in information technology
spending, higher professional services expenses, higher travel
expenses and increases in charitable contributions. Fund-related
expenses in the first quarter of fiscal 2020 were substantially
unchanged from the fourth quarter of fiscal 2019, reflecting higher
sub-advisory fees paid and an offsetting decline in fund expenses
borne by the Company.
Operating income decreased 1 percent to $134.7 million in the first quarter of fiscal
2020 from $135.4 million in the
fourth quarter of fiscal 2019. The Company's operating margin
decreased to 29.8 percent in the first quarter of fiscal 2020 from
31.2 percent in the fourth quarter of fiscal 2019.
Non-operating income totaled $8.4
million in the first quarter of fiscal 2020 and $15.6 million in the fourth quarter of fiscal
2019. The sequential change reflects an $8.2
million decrease in income contribution from consolidated
CLO entities, partially offset by a $0.9
million increase in net gains and other investment income
from the Company's investments in sponsored strategies, including
consolidated sponsored funds. The decrease in income contribution
from consolidated CLO entities is primarily attributable to the
sale of the Company's subordinated interests in a CLO entity in the
first quarter of fiscal 2020, which resulted in the deconsolidation
of the CLO entity.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 22.8 percent in the first quarter of fiscal 2020 and 22.7
percent in the fourth quarter of fiscal 2019. Adjusted to remove
the effect of net excess tax benefits from stock-based compensation
plans, the Company's effective tax rate, calculated on the same
basis, was 26.2 percent in the first quarter of fiscal 2020 and
23.7 percent in the fourth quarter of fiscal 2019. The Company's
effective tax rate is discussed in greater detail under "Taxation"
below.
Equity in net income of affiliates was $2.3 million in the first quarter of fiscal 2020
and $2.2 million in the fourth
quarter of fiscal 2019, 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 $8.9 million in the first quarter of fiscal 2020
and $9.7 million in the fourth
quarter of fiscal 2019. The sequential change reflects an increase
in income earned by consolidated sponsored funds and the Company's
accelerated repurchase of certain profit and capital interests in
Parametric entities held by current and former employees, which
settled at the end of the fourth quarter of fiscal 2019.
The Company's weighted average basic shares outstanding were
109.4 million in the first quarter of fiscal 2020 and 108.7 million
in the fourth quarter of fiscal 2019, an increase of 1 percent. The
sequential increase reflects new shares issued upon the vesting of
restricted stock awards and the exercise of employee stock options
in excess of share repurchases. On a diluted basis, the Company's
weighted average shares outstanding increased to 114.7 million in
the first quarter of fiscal 2020 from 113.7 million in the fourth
quarter of fiscal 2019, an increase of 1 percent. The increase in
weighted average diluted shares outstanding further reflects an
increase in the dilutive effect of in-the-money options and
unvested restricted stock awards due to higher market prices of the
Company's shares.
Taxation
The following table reconciles the statutory federal income tax
rate to the Company's effective tax rate:
|
Three Months
Ended
|
|
January
31,
|
October
31,
|
January
31,
|
|
2020
|
2019
|
2019
|
Statutory U.S.
federal income tax rate
|
21.0
|
%
|
21.0
|
%
|
21.0
|
%
|
State income taxes
for current year, net of
federal
income tax benefits
|
4.9
|
|
4.5
|
|
4.6
|
|
Net income
attributable to non-controlling
and
other beneficial interests
|
(0.5)
|
|
(1.7)
|
|
(1.0)
|
|
Other
items
|
0.8
|
|
(0.1)
|
|
1.3
|
|
Adjusted effective
income tax rate(2)
|
26.2
|
|
23.7
|
|
25.9
|
|
Net excess tax
benefits from stock-based
compensation
plans
|
(3.4)
|
|
(1.0)
|
|
(2.5)
|
|
Effective income
tax rate
|
22.8
|
%
|
22.7
|
%
|
23.4
|
%
|
The Company's income tax provision for the first quarter of
fiscal 2020, first quarter of fiscal 2019 and fourth quarter of
fiscal 2019 includes $1.3 million,
$0.6 million and $0.7 million, respectively, of charges associated
with certain provisions of the Tax Cuts and Jobs Act that took
effect for the Company in fiscal 2019, relating principally to
limitations on the deductibility of executive compensation.
The Company's income tax provision was reduced by net excess tax
benefits related to stock-based compensation awards totaling
$4.9 million in the first quarter of
fiscal 2020, $2.9 million in the
first quarter of fiscal 2019 and $1.5
million in the fourth quarter of fiscal 2019.
The Company's calculations of adjusted net income and adjusted
earnings per diluted share remove the tax impact of stock-based
compensation shortfalls or windfalls. On this basis, the Company's
adjusted effective tax rate was 26.2 percent in the first quarter
of fiscal 2020, 25.9 percent in the first quarter of fiscal 2019
and 23.7 percent in the fourth quarter of fiscal 2019. On the same
adjusted basis, the Company estimates that its effective tax rate
will be approximately 26.5 to 27.0 percent for the balance of
fiscal 2020 and for the fiscal year as a whole. The Company's
actual adjusted effective tax rate for fiscal 2020 may vary from
this estimate due to changes in the Company's tax policy
interpretations and assumptions, additional regulatory guidance
that may be issued and other factors.
Balance Sheet Information
As of January 31, 2020, the
Company held cash and cash equivalents of $544.1 million and its investments included
$280.6 million of short-term debt
securities with maturities between 90 days and one year. There were
no outstanding borrowings under the Company's $300 million credit facility at such date. During
the first three months of fiscal 2020, the Company used
$66.6 million to repurchase and
retire approximately 1.4 million shares of its Non-Voting Common
Stock under its repurchase authorizations. Of the current 8.0
million share repurchase authorization, approximately 4.9 million
shares remain available.
Conference Call Information
Eaton Vance Corp. will host a conference call and webcast at
11:00 AM eastern time today to
discuss the financial results for the three months
ended January 31, 2020. To participate in the conference call,
please dial 866-521-4909 (domestic) or 647-427-2311 (international)
and refer to "Eaton Vance Corp. First 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 3888396 when instructed.
About Eaton Vance Corp.
Eaton Vance Corp. (NYSE: EV) provides advanced investment
strategies and wealth management solutions to forward-thinking
investors around the world. Through principal investment affiliates
Eaton Vance Management, Parametric, Atlanta Capital, Calvert and
Hexavest, the Company offers a diversity of investment approaches,
encompassing bottom-up and top-down fundamental active management,
responsible investing, systematic investing and customized
implementation of client-specified portfolio exposures. As of
January 31, 2020, Eaton Vance had
consolidated assets under management of $518.2 billion. Exemplary service, timely
innovation and attractive returns across market cycles have been
hallmarks of Eaton Vance since 1924. For more information, 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.
|
|
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|
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Attachment
1
|
|
Eaton Vance
Corp.
|
|
Summary of Results
of Operations
|
|
(in thousands,
except per share figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
Q1
2020
|
Q1
2020
|
|
|
|
January
31,
|
October
31,
|
January
31,
|
vs.
|
vs.
|
|
|
|
2020
|
2019
|
2019
|
Q4
2019
|
Q1
2019
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
$
|
394,801
|
$
|
378,062
|
$
|
350,750
|
4
|
%
|
13
|
%
|
|
Distribution and
underwriter fees
|
|
21,578
|
|
21,187
|
|
23,090
|
2
|
|
(7)
|
|
|
Service
fees
|
|
33,939
|
|
32,272
|
|
29,360
|
5
|
|
16
|
|
|
Other
revenue
|
|
2,236
|
|
2,219
|
|
3,216
|
1
|
|
(30)
|
|
|
|
Total
revenue
|
|
452,554
|
|
433,740
|
|
406,416
|
4
|
|
11
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
related costs
|
|
171,982
|
|
160,441
|
|
153,888
|
7
|
|
12
|
|
|
Distribution
expense
|
|
40,003
|
|
38,731
|
|
37,508
|
3
|
|
7
|
|
|
Service fee
expense
|
|
29,755
|
|
28,287
|
|
25,517
|
5
|
|
17
|
|
|
Amortization of
deferred sales commissions
|
|
5,968
|
|
5,831
|
|
5,547
|
2
|
|
8
|
|
|
Fund-related
expenses
|
|
11,067
|
|
11,037
|
|
9,645
|
-
|
|
15
|
|
|
Other
expenses
|
|
59,060
|
|
53,980
|
|
53,181
|
9
|
|
11
|
|
|
|
Total
expenses
|
|
317,835
|
|
298,307
|
|
285,286
|
7
|
|
11
|
|
|
Operating
income
|
|
134,719
|
|
135,433
|
|
121,130
|
(1)
|
|
11
|
|
|
Non-operating
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
Gains and other
investment income, net
|
|
16,090
|
|
15,155
|
|
5,833
|
6
|
|
176
|
|
|
Interest
expense
|
|
(5,888)
|
|
(5,888)
|
|
(6,131)
|
-
|
|
(4)
|
|
|
Other income
(expense) of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized loan
obligation (CLO) entities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
and other investment income, net
|
|
15,563
|
|
24,777
|
|
5,441
|
(37)
|
|
186
|
|
|
|
Interest
and other expense
|
|
(17,396)
|
|
(18,445)
|
|
(8,336)
|
(6)
|
|
109
|
|
|
|
Total non-operating
income (expense)
|
|
8,369
|
|
15,599
|
|
(3,193)
|
(46)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes and equity
|
|
|
|
|
|
|
|
|
|
|
|
in
net income of affiliates
|
|
143,088
|
|
151,032
|
|
117,937
|
(5)
|
|
21
|
|
|
Income
taxes
|
|
(32,578)
|
|
(34,254)
|
|
(27,625)
|
(5)
|
|
18
|
|
|
Equity in net income
of affiliates, net of tax
|
|
2,325
|
|
2,172
|
|
1,948
|
7
|
|
19
|
|
|
Net
income
|
|
112,835
|
|
118,950
|
|
92,260
|
(5)
|
|
22
|
|
|
Net income
attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
and
other beneficial interests
|
|
(8,850)
|
|
(9,744)
|
|
(5,459)
|
(9)
|
|
62
|
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
Eaton
Vance Corp. shareholders
|
$
|
103,985
|
$
|
109,206
|
$
|
86,801
|
(5)
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.95
|
$
|
1.00
|
$
|
0.77
|
(5)
|
|
23
|
|
|
Diluted
|
$
|
0.91
|
$
|
0.96
|
$
|
0.75
|
(5)
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
109,380
|
|
108,690
|
|
112,255
|
1
|
|
(3)
|
|
|
Diluted
|
|
114,688
|
|
113,702
|
|
115,516
|
1
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.375
|
$
|
0.375
|
$
|
0.350
|
-
|
|
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
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
Q1
2020
|
Q1
2020
|
|
January
31,
|
October
31,
|
January
31,
|
|
vs.
|
vs.
|
|
2020
|
2019
|
2019
|
|
Q4
2019
|
Q1
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
Corp.
shareholders
|
$
|
103,985
|
$
|
109,206
|
$
|
86,801
|
|
(5)
|
%
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net excess tax
benefit from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
plans
|
|
(4,860)
|
|
(1,541)
|
|
(2,949)
|
|
215
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income attributable to Eaton
|
|
|
|
|
|
|
|
|
|
|
|
|
Vance Corp.
shareholders
|
$
|
99,125
|
$
|
107,665
|
$
|
83,852
|
|
(8)
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
diluted share
|
$
|
0.91
|
$
|
0.96
|
$
|
0.75
|
|
(5)
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net excess tax
benefit from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
plans
|
|
(0.05)
|
|
(0.01)
|
|
(0.02)
|
|
400
|
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per diluted share
|
$
|
0.86
|
$
|
0.95
|
$
|
0.73
|
|
(9)
|
|
18
|
|
|
|
|
|
|
|
|
|
Attachment
3
|
Eaton Vance
Corp.
|
Components of net
income attributable
|
to non-controlling
and other beneficial interests
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
Q1
2020
|
Q1
2020
|
|
|
January
31,
|
October
31,
|
January
31,
|
|
vs.
|
vs.
|
|
2020
|
2019
|
2019
|
|
Q4
2019
|
Q1
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
sponsored funds
|
$
|
7,177
|
$
|
6,759
|
$
|
2,422
|
|
6
|
%
|
196
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Majority-owned
subsidiaries
|
|
1,673
|
|
2,985
|
|
3,037
|
|
(44)
|
|
(45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
and other
beneficial interests
|
$
|
8,850
|
$
|
9,744
|
$
|
5,459
|
|
(9)
|
|
62
|
|
|
|
|
|
|
|
Attachment
4
|
|
Eaton Vance
Corp.
|
|
Balance
Sheet
|
|
(in thousands,
except per share figures)
|
|
|
|
|
|
January
31,
|
|
|
October
31,(1)
|
|
|
|
2020
|
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
544,114
|
|
$
|
557,668
|
|
Management fees and
other receivables
|
|
237,579
|
|
|
237,864
|
|
Investments
|
|
1,095,103
|
|
|
1,060,739
|
|
Assets of
consolidated CLO entities:
|
|
|
|
|
|
|
Cash
|
|
21,439
|
|
|
48,704
|
|
Bank
loans and other investments
|
|
1,290,583
|
|
|
1,704,270
|
|
Other
assets
|
|
13,658
|
|
|
28,039
|
|
Deferred sales
commissions
|
|
59,256
|
|
|
55,211
|
|
Deferred income
taxes
|
|
43,907
|
|
|
62,661
|
|
Equipment and
leasehold improvements, net
|
|
72,245
|
|
|
72,798
|
|
Operating lease
right-of-use assets
|
|
265,618
|
|
|
-
|
|
Intangible assets,
net
|
|
74,885
|
|
|
75,907
|
|
Goodwill
|
|
259,681
|
|
|
259,681
|
|
Loan to
affiliate
|
|
5,000
|
|
|
5,000
|
|
Other
assets
|
|
65,369
|
|
|
85,087
|
|
Total
assets
|
$
|
4,048,437
|
|
$
|
4,253,629
|
|
|
|
|
|
|
|
|
Liabilities,
Temporary Equity and Permanent Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued
compensation
|
$
|
88,271
|
|
$
|
240,722
|
|
Accounts payable and
accrued expenses
|
|
79,941
|
|
|
89,984
|
|
Dividend
payable
|
|
52,630
|
|
|
55,177
|
|
Debt
|
|
620,722
|
|
|
620,513
|
|
Operating lease
liabilities
|
|
314,846
|
|
|
-
|
|
Liabilities of
consolidated CLO entities:
|
|
|
|
|
|
|
Senior
and subordinated note obligations
|
|
1,218,216
|
|
|
1,617,095
|
|
Other
liabilities
|
|
30,847
|
|
|
51,122
|
|
Other
liabilities
|
|
61,853
|
|
|
108,982
|
|
Total
liabilities
|
|
2,467,326
|
|
|
2,783,595
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary
Equity:
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
336,087
|
|
|
285,915
|
|
Total
temporary equity
|
|
336,087
|
|
|
285,915
|
|
|
|
|
|
|
|
|
Permanent
Equity:
|
|
|
|
|
|
|
Voting Common Stock,
par value $0.00390625 per share:
|
|
|
|
|
|
|
Authorized, 1,280,000 shares
|
|
|
|
|
|
|
Issued
and outstanding, 478,643 and 422,935 shares,
respectively
|
|
2
|
|
|
2
|
|
Non-Voting Common
Stock, par value $0.00390625 per share:
|
|
|
|
|
|
|
Authorized, 190,720,000 shares
|
|
|
|
|
|
|
Issued
and outstanding, 114,257,084 and 113,143,567 shares,
respectively
|
|
446
|
|
|
442
|
|
Notes receivable from
stock option exercises
|
|
(7,354)
|
|
|
(8,447)
|
|
Accumulated other
comprehensive loss
|
|
(58,701)
|
|
|
(58,317)
|
|
Retained
earnings
|
|
1,310,631
|
|
|
1,250,439
|
|
Total
permanent equity
|
|
1,245,024
|
|
|
1,184,119
|
|
Total liabilities,
temporary equity and permanent equity
|
$
|
4,048,437
|
|
$
|
4,253,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
5
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management and Net Flows by Investment
Mandate(1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
January
31,
|
|
October
31,
|
|
January
31,
|
|
|
2020
|
|
2019
|
|
2019
|
Equity assets –
beginning of period(2)
|
$
|
131,895
|
|
$
|
128,996
|
|
$
|
115,772
|
|
Sales and other
inflows
|
|
7,806
|
|
|
6,833
|
|
|
6,220
|
|
Redemptions/outflows
|
|
(6,182)
|
|
|
(4,861)
|
|
|
(5,461)
|
|
Net
flows
|
|
1,624
|
|
|
1,972
|
|
|
759
|
|
Exchanges
|
|
3
|
|
|
(9)
|
|
|
(108)
|
|
Market value
change
|
|
5,186
|
|
|
936
|
|
|
567
|
Equity assets
– end of period
|
$
|
138,708
|
|
$
|
131,895
|
|
$
|
116,990
|
Fixed income assets –
beginning of period(3)
|
|
62,378
|
|
|
60,968
|
|
|
54,339
|
|
Sales and other
inflows
|
|
5,086
|
|
|
5,334
|
|
|
6,545
|
|
Redemptions/outflows
|
|
(3,947)
|
|
|
(4,193)
|
|
|
(4,866)
|
|
Net
flows
|
|
1,139
|
|
|
1,141
|
|
|
1,679
|
|
Exchanges
|
|
23
|
|
|
161
|
|
|
326
|
|
Market value
change
|
|
722
|
|
|
108
|
|
|
566
|
Fixed income
assets – end of period
|
$
|
64,262
|
|
$
|
62,378
|
|
$
|
56,910
|
Floating-rate income
assets – beginning of period
|
|
35,103
|
|
|
38,339
|
|
|
44,837
|
|
Sales and other
inflows
|
|
1,689
|
|
|
1,289
|
|
|
3,566
|
|
Redemptions/outflows
|
|
(3,046)
|
|
|
(3,890)
|
|
|
(6,478)
|
|
Net
flows
|
|
(1,357)
|
|
|
(2,601)
|
|
|
(2,912)
|
|
Exchanges
|
|
(27)
|
|
|
(67)
|
|
|
(266)
|
|
Market value
change
|
|
117
|
|
|
(568)
|
|
|
(716)
|
Floating-rate
income assets – end of period
|
$
|
33,836
|
|
$
|
35,103
|
|
$
|
40,943
|
Alternative assets –
beginning of period(4)
|
|
8,372
|
|
|
9,031
|
|
|
12,139
|
|
Sales and other
inflows
|
|
675
|
|
|
405
|
|
|
1,044
|
|
Redemptions/outflows
|
|
(593)
|
|
|
(970)
|
|
|
(3,264)
|
|
Net
flows
|
|
82
|
|
|
(565)
|
|
|
(2,220)
|
|
Exchanges
|
|
-
|
|
|
(88)
|
|
|
(27)
|
|
Market value
change
|
|
99
|
|
|
(6)
|
|
|
99
|
Alternative assets
– end of period
|
$
|
8,553
|
|
$
|
8,372
|
|
$
|
9,991
|
Parametric custom
portfolios assets – beginning of
period(5)
|
|
164,895
|
|
|
159,067
|
|
|
134,345
|
|
Sales and other
inflows
|
|
9,745
|
|
|
8,358
|
|
|
10,164
|
|
Redemptions/outflows
|
|
(6,221)
|
|
|
(5,496)
|
|
|
(5,300)
|
|
Net
flows
|
|
3,524
|
|
|
2,862
|
|
|
4,864
|
|
Exchanges
|
|
1
|
|
|
2
|
|
|
75
|
|
Market value
change
|
|
6,898
|
|
|
2,964
|
|
|
1,766
|
Parametric custom
portfolios assets – end of period
|
$
|
175,318
|
|
$
|
164,895
|
|
$
|
141,050
|
Parametric overlay
services assets – beginning of
period(6)
|
|
94,789
|
|
|
86,379
|
|
|
77,871
|
|
Sales and other
inflows
|
|
21,313
|
|
|
24,388
|
|
|
17,122
|
|
Redemptions/outflows
|
|
(20,199)
|
|
|
(17,400)
|
|
|
(17,808)
|
|
Net
flows
|
|
1,114
|
|
|
6,988
|
|
|
(686)
|
|
Market value
change
|
|
1,611
|
|
|
1,422
|
|
|
1,583
|
Parametric overlay
services assets – end of period
|
$
|
97,514
|
|
$
|
94,789
|
|
$
|
78,768
|
Total assets under
management – beginning of period
|
|
497,432
|
|
|
482,780
|
|
|
439,303
|
|
Sales and other
inflows
|
|
46,314
|
|
|
46,607
|
|
|
44,661
|
|
Redemptions/outflows
|
|
(40,188)
|
|
|
(36,810)
|
|
|
(43,177)
|
|
Net
flows
|
|
6,126
|
|
|
9,797
|
|
|
1,484
|
|
Exchanges
|
|
-
|
|
|
(1)
|
|
|
-
|
|
Market value
change
|
|
14,633
|
|
|
4,856
|
|
|
3,865
|
Total assets under
management – end of period
|
$
|
518,191
|
|
$
|
497,432
|
|
$
|
444,652
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent-owned Hexavest, which are not included in the table
above.
|
|
|
(2)
|
Includes balanced and
other multi‐asset mandates. Excludes equity mandates reported as
Parametric custom portfolios.
|
|
|
(3)
|
Includes cash
management mandates. Excludes benchmark-based fixed income separate
accounts reported as Parametric custom portfolios. Amounts for
periods prior to fiscal 2020 have been revised to reflect the
reclassification of benchmark-based fixed income separate accounts
from fixed income to Parametric custom portfolios.
|
|
|
(4)
|
Consists of absolute
return, commodity and currency mandates.
|
|
|
(5)
|
Equity, fixed income
and multi-asset separate accounts managed by Parametric for which
customization is a primary feature; other Parametric strategies may
also be customized. Formerly "portfolio implementation." Amounts
for periods prior to fiscal 2020 have been revised to reflect the
reclassification of benchmark-based fixed income
separate accounts from fixed income to Parametric custom
portfolios.
|
|
|
(6)
|
Formerly "exposure
management."
|
|
|
|
|
|
|
Attachment
6
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management and Net Flows by Investment
Vehicle(1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
January
31,
|
|
October
31,
|
|
January
31,
|
|
|
2020
|
|
2019
|
|
2019
|
Funds – beginning of
period
|
$
|
174,068
|
|
$
|
173,433
|
|
$
|
164,968
|
|
Sales and other
inflows
|
|
11,496
|
|
|
10,020
|
|
|
13,723
|
|
Redemptions/outflows
|
|
(9,161)
|
|
|
(9,613)
|
|
|
(15,425)
|
|
Net
flows
|
|
2,335
|
|
|
407
|
|
|
(1,702)
|
|
Exchanges
|
|
-
|
|
|
(1)
|
|
|
(98)
|
|
Market value
change
|
|
4,136
|
|
|
229
|
|
|
(418)
|
Funds – end
of period
|
$
|
180,539
|
|
$
|
174,068
|
|
$
|
162,750
|
Institutional
separate accounts – beginning of period
|
|
173,331
|
|
|
165,311
|
|
|
153,996
|
|
Sales and other
inflows
|
|
23,605
|
|
|
27,342
|
|
|
20,829
|
|
Redemptions/outflows
|
|
(25,449)
|
|
|
(21,782)
|
|
|
(22,329)
|
|
Net
flows
|
|
(1,844)
|
|
|
5,560
|
|
|
(1,500)
|
|
Exchanges
|
|
-
|
|
|
4
|
|
|
98
|
|
Market value
change
|
|
3,771
|
|
|
2,456
|
|
|
2,630
|
Institutional
separate accounts – end of period
|
$
|
175,258
|
|
$
|
173,331
|
|
$
|
155,224
|
Individual separate
accounts – beginning of period
|
|
150,033
|
|
|
144,036
|
|
|
120,339
|
|
Sales and other
inflows
|
|
11,213
|
|
|
9,245
|
|
|
10,109
|
|
Redemptions/outflows
|
|
(5,578)
|
|
|
(5,415)
|
|
|
(5,423)
|
|
Net
flows
|
|
5,635
|
|
|
3,830
|
|
|
4,686
|
|
Exchanges
|
|
-
|
|
|
(4)
|
|
|
-
|
|
Market value
change
|
|
6,726
|
|
|
2,171
|
|
|
1,653
|
Individual
separate accounts – end of period
|
$
|
162,394
|
|
$
|
150,033
|
|
$
|
126,678
|
Total assets under
management – beginning of period
|
|
497,432
|
|
|
482,780
|
|
|
439,303
|
|
Sales and other
inflows
|
|
46,314
|
|
|
46,607
|
|
|
44,661
|
|
Redemptions/outflows
|
|
(40,188)
|
|
|
(36,810)
|
|
|
(43,177)
|
|
Net
flows
|
|
6,126
|
|
|
9,797
|
|
|
1,484
|
|
Exchanges
|
|
-
|
|
|
(1)
|
|
|
-
|
|
Market value
change
|
|
14,633
|
|
|
4,856
|
|
|
3,865
|
Total assets under
management – end of period
|
$
|
518,191
|
|
$
|
497,432
|
|
$
|
444,652
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent‐owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
7
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management by Investment
Mandate(1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
|
October
31,
|
|
%
|
|
|
January
31,
|
|
%
|
|
|
|
2020
|
|
|
2019
|
|
Change
|
|
|
2019
|
|
Change
|
Equity(2)
|
$
|
138,708
|
|
$
|
131,895
|
|
5%
|
|
$
|
116,990
|
|
19%
|
Fixed
income(3)
|
|
64,262
|
|
|
62,378
|
|
3%
|
|
|
56,910
|
|
13%
|
Floating-rate
income
|
|
33,836
|
|
|
35,103
|
|
-4%
|
|
|
40,943
|
|
-17%
|
Alternative(4)
|
|
8,553
|
|
|
8,372
|
|
2%
|
|
|
9,991
|
|
-14%
|
Parametric custom
portfolios(5)
|
|
175,318
|
|
|
164,895
|
|
6%
|
|
|
141,050
|
|
24%
|
Parametric overlay
services(6)
|
|
97,514
|
|
|
94,789
|
|
3%
|
|
|
78,768
|
|
24%
|
Total
|
$
|
518,191
|
|
$
|
497,432
|
|
4%
|
|
$
|
444,652
|
|
17%
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent‐owned Hexavest, which are not included in the table
above.
|
|
|
(2)
|
Includes balanced and
other multi‐asset mandates. Excludes equity mandates reported as
Parametric custom portfolios.
|
|
|
(3)
|
Includes cash
management mandates. Excludes benchmark-based fixed income separate
accounts reported as Parametric custom portfolios. Amounts for
periods prior to fiscal 2020 have been revised to reflect the
reclassification of benchmark-based fixed income separate accounts
from fixed income to Parametric custom portfolios.
|
|
|
(4)
|
Consists of absolute
return, commodity and currency mandates.
|
|
|
(5)
|
Equity, fixed income
and multi-asset separate accounts managed by Parametric for which
customization is a primary feature; other Parametric strategies may
also be customized. Formerly "portfolio implementation." Amounts
for periods prior to fiscal 2020 have been revised to reflect the
reclassification of benchmark-based fixed income separate
accounts from fixed income to Parametric custom
portfolios.
|
|
|
(6)
|
Formerly "exposure
management."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
8
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management by Investment
Vehicle(1)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
|
October
31,
|
|
%
|
|
|
January
31,
|
|
%
|
|
|
|
2020
|
|
|
2019
|
|
Change
|
|
|
2019
|
|
Change
|
Open-end
funds
|
$
|
108,290
|
|
$
|
105,043
|
|
3%
|
|
$
|
99,846
|
|
8%
|
Closed-end
funds
|
|
24,873
|
|
|
24,284
|
|
2%
|
|
|
23,633
|
|
5%
|
Private
funds(2)
|
|
47,376
|
|
|
44,741
|
|
6%
|
|
|
39,271
|
|
21%
|
Institutional
separate accounts
|
|
175,258
|
|
|
173,331
|
|
1%
|
|
|
155,224
|
|
13%
|
Individual separate
accounts
|
|
162,394
|
|
|
150,033
|
|
8%
|
|
|
126,678
|
|
28%
|
Total
|
$
|
518,191
|
|
$
|
497,432
|
|
4%
|
|
$
|
444,652
|
|
17%
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent‐owned Hexavest, which are not included in the table
above.
|
|
|
(2)
|
Includes privately
offered equity, fixed and floating-rate income, and alternative
funds and CLO entities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
9
|
Eaton Vance
Corp.
|
Consolidated
Assets under Management by Investment
Affiliate(1)(2)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
|
October
31,
|
|
%
|
|
|
January
31,
|
|
%
|
|
|
|
2020
|
|
|
2019
|
|
Change
|
|
|
2019
|
|
Change
|
Eaton Vance
Management(3)(4)
|
$
|
149,994
|
|
$
|
146,628
|
|
2%
|
|
$
|
143,473
|
|
5%
|
Parametric(4)
|
|
320,848
|
|
|
306,907
|
|
5%
|
|
|
264,945
|
|
21%
|
Atlanta
Capital(5)
|
|
25,552
|
|
|
24,100
|
|
6%
|
|
|
20,833
|
|
23%
|
Calvert(6)
|
|
21,797
|
|
|
19,797
|
|
10%
|
|
|
15,401
|
|
42%
|
Total
|
$
|
518,191
|
|
$
|
497,432
|
|
4%
|
|
$
|
444,652
|
|
17%
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent-owned Hexavest, which are not included in the table
above.
|
|
|
(2)
|
In the first quarter
of fiscal 2020, the Company changed its policy for reporting
managed assets of investment portfolios overseen by multiple Eaton
Vance affiliates to base classification on the strategy's
primary identity. In conjunction with this change, managed assets
of $3.5 billion and $2.4 billion as of October 31, 2019 and January
31, 2019, respectively, were reclassified from Atlanta
Capital to Calvert and managed assets of $2.8 billion and $2.6
billion as of October 31, 2019 and January 31, 2019, respectively,
were reclassified from Parametric to Eaton Vance
Management.
|
|
|
(3)
|
Includes managed
assets of Eaton Vance-sponsored funds and separate accounts managed
by Hexavest and unaffiliated third-party advisers under Eaton Vance
supervision.
|
|
|
(4)
|
In the first quarter
of fiscal 2020, management responsibilities for the Company's
systematically managed fixed income strategies were shifted from
Eaton Vance Management to Parametric. Managed assets of the
reassigned strategies were $43.9 billion as of October 31, 2019 and
$37.4 billion as of January 31, 2019.
|
|
|
(5)
|
Excludes managed
assets of Calvert Equity Fund, which is sub-advised by Atlanta
Capital. Including Calvert Equity Fund, the managed assets of
Atlanta Capital were $29.5 billion, $27.6 billion and $23.2
billion, respectively, as of January 31, 2020, October 31, 2019 and
January 31, 2019.
|
|
|
(6)
|
Includes managed
assets of Calvert Equity Fund, which is sub-advised by Atlanta
Capital, and Calvert-sponsored funds managed by unaffiliated
third-party advisers under Calvert supervision.
|
Attachment
10
|
Eaton Vance
Corp.
|
Average Annualized
Management Fee Rates by Investment
Mandate(1)
|
(in basis points
on average managed assets)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
%
|
%
|
|
|
|
|
Change
|
Change
|
|
|
|
|
Q1
2020
|
Q1
2020
|
|
January
31,
|
October
31,
|
January
31,
|
vs.
|
vs.
|
|
2020
|
2019
|
2019
|
Q4
2019
|
Q1
2019
|
Equity(2)
|
57.0
|
56.2
|
56.9
|
1%
|
0%
|
Fixed
income(3)
|
41.4
|
41.6
|
41.8
|
0%
|
-1%
|
Floating-rate
income
|
49.9
|
49.3
|
50.0
|
1%
|
0%
|
Alternative(4)
|
64.5
|
62.7
|
58.3
|
3%
|
11%
|
Parametric custom
portfolios(5)
|
15.2
|
14.8
|
14.4
|
3%
|
6%
|
Parametric overlay
services(6)
|
4.9
|
4.9
|
5.2
|
0%
|
-6%
|
Total
|
30.8
|
30.8
|
32.0
|
0%
|
-4%
|
|
|
(1)
|
Excludes
performance-based fees, which were $0.2 million in the three months
ended January 31, 2020, $0.1 million in the three months ended
October 31, 2019 and $(0.3) million in the three months
ended January 31, 2019.
|
|
|
(2)
|
Includes balanced and
other multi‐asset mandates. Excludes equity mandates reported as
Parametric custom portfolios.
|
|
|
(3)
|
Includes cash
management mandates. Excludes benchmark-based fixed income separate
accounts reported as Parametric custom portfolios. Amounts for
periods prior to fiscal 2020 have been revised to reflect
the reclassification of benchmark-based fixed income separate
accounts from fixed income to Parametric custom
portfolios.
|
|
|
(4)
|
Consists of absolute
return, commodity and currency mandates.
|
|
|
(5)
|
Includes equity,
fixed income and multi-asset separate accounts managed by
Parametric for which customization is a primary feature; other
Parametric strategies may also be customized. Formerly
"portfolio implementation." Amounts for periods prior to fiscal
2020 have been revised to reflect the reclassification of
benchmark-based fixed income separate accounts from
fixed income to Parametric custom portfolios.
|
|
|
(6)
|
Formerly "exposure
management."
|
Attachment
11
|
Eaton Vance
Corp.
|
Hexavest Inc.
Assets under Management and Net Flows
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
January
31,
|
|
October
31,
|
|
January
31,
|
|
|
|
2020
|
|
2019
|
|
2019
|
Eaton Vance
distributed:
|
|
|
|
|
|
|
|
|
Eaton Vance sponsored
funds – beginning of period(1)
|
$
|
152
|
|
$
|
170
|
|
$
|
159
|
|
Sales and other
inflows
|
|
3
|
|
|
1
|
|
|
40
|
|
Redemptions/outflows
|
|
(26)
|
|
|
(24)
|
|
|
(25)
|
|
Net
flows
|
|
(23)
|
|
|
(23)
|
|
|
15
|
|
Market value
change
|
|
1
|
|
|
5
|
|
|
3
|
Eaton Vance
sponsored funds – end of period
|
$
|
130
|
|
$
|
152
|
|
$
|
177
|
Eaton Vance
distributed separate accounts –
|
|
|
|
|
|
|
|
|
beginning of period(2)
|
$
|
1,563
|
|
$
|
1,745
|
|
$
|
2,169
|
|
Sales and other
inflows
|
|
6
|
|
|
2
|
|
|
21
|
|
Redemptions/outflows
|
|
(22)
|
|
|
(226)
|
|
|
(140)
|
|
Net
flows
|
|
(16)
|
|
|
(224)
|
|
|
(119)
|
|
Market value
change
|
|
19
|
|
|
42
|
|
|
15
|
Eaton Vance
distributed separate accounts – end of period
|
$
|
1,566
|
|
$
|
1,563
|
|
$
|
2,065
|
Total Eaton Vance
distributed – beginning of period
|
$
|
1,715
|
|
$
|
1,915
|
|
$
|
2,328
|
|
Sales and other
inflows
|
|
9
|
|
|
3
|
|
|
61
|
|
Redemptions/outflows
|
|
(48)
|
|
|
(250)
|
|
|
(165)
|
|
Net
flows
|
|
(39)
|
|
|
(247)
|
|
|
(104)
|
|
Market value
change
|
|
20
|
|
|
47
|
|
|
18
|
Total Eaton Vance
distributed – end of period
|
$
|
1,696
|
|
$
|
1,715
|
|
$
|
2,242
|
Hexavest directly
distributed – beginning of period(3)
|
$
|
11,640
|
|
$
|
11,474
|
|
$
|
11,467
|
|
Sales and other
inflows
|
|
96
|
|
|
140
|
|
|
519
|
|
Redemptions/outflows
|
|
(554)
|
|
|
(321)
|
|
|
(1,134)
|
|
Net
flows
|
|
(458)
|
|
|
(181)
|
|
|
(615)
|
|
Market value
change
|
|
114
|
|
|
347
|
|
|
136
|
Hexavest directly
distributed – end of period
|
$
|
11,296
|
|
$
|
11,640
|
|
$
|
10,988
|
Total Hexavest
managed assets – beginning of period
|
$
|
13,355
|
|
$
|
13,389
|
|
$
|
13,795
|
|
Sales and other
inflows
|
|
105
|
|
|
143
|
|
|
580
|
|
Redemptions/outflows
|
|
(602)
|
|
|
(571)
|
|
|
(1,299)
|
|
Net
flows
|
|
(497)
|
|
|
(428)
|
|
|
(719)
|
|
Market value
change
|
|
134
|
|
|
394
|
|
|
154
|
Total Hexavest
managed assets – end of period
|
$
|
12,992
|
|
$
|
13,355
|
|
$
|
13,230
|
|
|
(1)
|
Managed assets and
flows of Eaton Vance-sponsored funds 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 consolidated assets under management, flows and
average annualized management fee rates reported in
Attachments 5 through 10.
|
|
|
(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
consolidated assets under management, flows and average annualized
management fee rates reported in Attachments 5 through
10.
|
|
|
(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 consolidated assets under management, flows and average
annualized management fee rates reported in Attachments 5
through 10.
|
___________________________
|
(1)
|
Although the
Company reports its financial results in accordance with U.S. GAAP,
management believes that certain non-U.S. GAAP financial measures,
specifically, adjusted net income attributable to Eaton Vance Corp.
shareholders and adjusted earnings per diluted share, while not a
substitute for U.S. GAAP financial measures, may be effective
indicators of the Company's performance over time. Non-U.S. GAAP
financial measures should not be construed to be superior to U.S.
GAAP measures. In calculating these non-U.S. 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, when applicable, the add back of
closed-end fund structuring fees, costs associated with special
dividends, debt repayments and tax settlements, the tax impact of
stock-based compensation shortfalls or windfalls, and non-recurring
charges for the effect of tax law changes. Management and our Board
of Directors, as well as certain of 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 useful baseline for analyzing trends in our underlying
business.
|
|
|
(2)
|
Represents the
Company's effective income tax rate, excluding the tax impact of
stock-based compensation shortfalls or windfalls. Management
believes that the Company's adjusted effective income tax rate is
an important indicator of our operations because it excludes items
that may not be indicative of, or are unrelated to, our core
operating results, and may provide a useful baseline for analyzing
trends in our underlying business.
|
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content:http://www.prnewswire.com/news-releases/eaton-vance-corp-report-for-the-three-month-period-ended-january-31-2020-301011746.html
SOURCE Eaton Vance Corp.