BOSTON, May 20, 2020 /PRNewswire/ -- Eaton Vance
Corp. (NYSE: EV) today reported earnings per diluted share of
$0.65 for the second quarter of
fiscal 2020, a decrease of 27 percent from $0.89 of earnings per diluted share in the second
quarter of fiscal 2019 and a decrease of 29 percent from
$0.91 of earnings per diluted share
in the first quarter of fiscal 2020.
The Company reported adjusted earnings per diluted
share([1])([2]) of
$0.80 for the second quarter of
fiscal 2020, unchanged from the second quarter of fiscal 2019 and a
decrease of 6 percent from $0.85 of
adjusted earnings per diluted share in the first quarter of fiscal
2020. In the second quarter of fiscal 2020, adjusted earnings
exceeded earnings under U.S. generally accepted accounting
principles (U.S. GAAP) by $0.15 per
diluted share, reflecting the reversal of $16.8 million of net losses of consolidated
investment entities and the Company's other seed capital
investments, the add-back of $1.8
million of management fees and expenses of consolidated
investment entities, and the reversal of $1.1 million of net excess tax benefits related
to stock‐based compensation awards. Earnings under U.S. GAAP
exceeded adjusted earnings per diluted share by $0.09 in the second quarter of fiscal 2019,
reflecting the reversal of $11.4
million of net gains of consolidated investment entities and
other seed capital investments, the add-back of $1.8 million of management fees and expenses of
consolidated investment entities, and the reversal of $0.3 million of net excess tax benefits related
to stock-based compensation awards. In the first quarter of fiscal
2020, earnings under U.S. GAAP exceeded adjusted earnings by
$0.06 per diluted share, reflecting
the reversal of $3.6 million of net
gains of consolidated investment entities and other seed capital
investments, the add-back of $2.4
million of management fees and expenses of consolidated
investment entities, and the reversal of $4.9 million of net excess tax benefits related
to stock‐based compensation awards.
Consolidated net outflows of $9.3
billion in the second quarter of fiscal 2020 represent -7
percent annualized internal growth in managed assets (consolidated
net flows divided by beginning of period consolidated assets under
management). This compares to net inflows of $4.6 billion and 4 percent annualized internal
growth in managed assets in the second quarter of fiscal 2019 and
net inflows of $6.1 billion and 5
percent annualized internal growth in managed assets in the first
quarter of fiscal 2020. Excluding Parametric overlay services, the
Company had net outflows of $2.8
billion and -3 percent annualized internal growth in managed
assets in the second quarter of fiscal 2020, net inflows of
$2.6 billion and 3 percent annualized
internal growth in managed assets in the second quarter of fiscal
2019 and net inflows of $5.0 billion
and 5 percent annualized internal growth in managed assets in the
first quarter of fiscal 2020.
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 -6
percent in the second quarter of fiscal 2020, 1 percent in the
second quarter of fiscal 2019 and 5 percent in the first quarter of
fiscal 2020.
During the second quarter of fiscal 2020, consolidated net flows
varied considerably from month to month. The Company had net
inflows of $2.9 billion in February,
net outflows of $11.8 billion in
March and net outflows of $0.4
billion in April. Excluding Parametric overlay services, the
Company had net inflows of $2.4
billion in February, net outflows of $5.4 billion in March and net inflows of
$0.2 billion in April. The Company's
annualized internal management fee revenue growth was 5 percent in
February, -23 percent in March and -2 percent in April.
Consolidated assets under management were $465.3 billion on April
30, 2020, down 1 percent from $469.9
billion of consolidated managed assets on April 30, 2019 and down 10 percent from
$518.2 billion of consolidated
managed assets on January 31, 2020.
The year-over-year decrease in consolidated assets under management
reflects net inflows of $14.6 billion
and market price declines of $19.3
billion. The sequential quarterly decrease in consolidated
assets under management reflects net outflows of $9.3 billion and market price declines of
$43.6 billion in the second quarter
of fiscal 2020.
"Like all companies, Eaton Vance has been significantly affected
by the COVID-19 pandemic," said Thomas E.
Faust Jr., Chairman and Chief Executive Officer. "Nearly all
of our staff has been working from home since mid-March, and will
remain doing so for the foreseeable future. We continue to engage
actively with clients and business partners, seeking to help them
address their investment needs during this difficult period. Our
financial results for the three months ended April 30, 2020 speak to both the challenges of
operating in this time of extreme disruption and the great
strengths and resilience of our business and culture."
Average consolidated assets under management were $479.5 billion in the second quarter of fiscal
2020, up 5 percent from $456.2
billion in the second quarter of fiscal 2019 and down 6
percent from $509.9 billion in the
first quarter of fiscal 2020.
As shown in Attachment 11, excluding performance-based fees,
annualized management fee rates on consolidated assets under
management averaged 29.7 basis points in the second quarter of
fiscal 2020, down 7 percent from 31.8 basis points in the second
quarter of fiscal 2019 and down 4 percent from 30.8 basis points in
the first quarter of fiscal 2020. Changes in average annualized
management fee rates for the compared periods primarily reflect
shifts in the Company's mix of business.
Attachments 6 and 7 summarize the Company's consolidated assets
under management and net flows by investment mandate and investment
vehicle reporting categories. Attachments 8, 9 and 10 summarize the
Company's ending consolidated assets under management by investment
mandate, investment vehicle and investment affiliate. Attachment 11
shows the Company's average annualized management fee rates by
investment mandate.
As shown in Attachments 6 and 7, consolidated sales and other
inflows were $61.6 billion in the
second quarter of fiscal 2020, up 67 percent from $36.8 billion in the second quarter of fiscal
2019 and up 33 percent from $46.3
billion in the first quarter of fiscal 2020.
Consolidated redemptions and other outflows were $70.9 billion in the second quarter of fiscal
2020, up 120 percent from $32.2
billion in the second quarter of fiscal 2019 and up 76
percent from $40.2 billion in the
first quarter of fiscal 2020.
As of April 30, 2020, the
Company's 49 percent-owned affiliate Hexavest Inc. (Hexavest)
managed $8.6 billion of client
assets, down 38 percent from $13.9
billion of managed assets on April
30, 2019 and down 34 percent from $13.0 billion of managed assets on January 31, 2020. Hexavest had net outflows of
$2.2 billion in the second quarter of
fiscal 2020, versus net inflows of $0.2
billion in the second quarter of fiscal 2019 and net
outflows of $0.5 billion in the first
quarter of fiscal 2020. Attachment 12 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.
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Financial
Highlights
|
|
|
|
|
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(in thousands,
except per share figures)
|
|
|
|
|
|
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|
|
|
|
|
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Three Months
Ended
|
|
April
30,
|
January
31,
|
April
30,
|
|
2020
|
2020
|
2019
|
|
Revenue
|
$
|
405,911
|
$
|
452,554
|
$
|
411,861
|
|
Expenses
|
|
283,955
|
|
317,835
|
|
284,688
|
|
Operating
income
|
|
121,956
|
|
134,719
|
|
127,173
|
|
Operating margin
|
|
30.0%
|
|
29.8%
|
|
30.9%
|
|
Adjusted operating margin
|
|
30.5%
|
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30.3%
|
|
31.4%
|
|
Non-operating income
(expense)
|
|
(73,364)
|
|
8,369
|
|
20,291
|
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Income
taxes
|
|
(22,017)
|
|
(32,578)
|
|
(37,069)
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Equity in net income
of affiliates, net of tax
|
|
1,481
|
|
2,325
|
|
2,735
|
|
Net income
|
|
28,056
|
|
112,835
|
|
113,130
|
|
Net (income) loss
attributable to non-controlling
|
|
|
|
|
|
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and
other beneficial interests
|
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44,002
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(8,850)
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(11,323)
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Net income
attributable to
|
|
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|
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Eaton
Vance Corp. shareholders
|
$
|
72,058
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$
|
103,985
|
$
|
101,807
|
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Adjusted net income
attributable to
|
|
|
|
|
|
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Eaton
Vance Corp. shareholders
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$
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89,627
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$
|
97,947
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$
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91,955
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Earnings per diluted
share
|
$
|
0.65
|
$
|
0.91
|
$
|
0.89
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Adjusted earnings per
diluted share
|
$
|
0.80
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$
|
0.85
|
$
|
0.80
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Second Quarter Fiscal 2020 vs. Second Quarter Fiscal
2019
In the second quarter of fiscal 2020, revenue decreased 1
percent to $405.9 million from
$411.9 million in the second quarter
of fiscal 2019. Management fees were down 1 percent, as a 7 percent
decrease in consolidated average annualized management fee rates
more than offset higher average consolidated assets under
management and the impact of one additional fee day in the second
quarter of fiscal 2020. Performance fees were $2.5 million in the second quarter of fiscal
2020 and $1.8 million in the
second quarter of fiscal 2019. Collectively, distribution and
service fee revenues were substantially unchanged from the second
quarter of fiscal 2019.
Operating expenses were $284.0
million in the second quarter of fiscal 2020, substantially
unchanged from $284.7 million in the
second quarter of fiscal 2019, reflecting decreases in compensation
and distribution expenses, partially offset by increases in service
fee expense, amortization of deferred sales commissions,
fund-related expenses and other expenses. The decrease in
compensation reflects lower operating income-based and investment
performance-based bonus accruals, lower stock-based compensation
expense and lower severance expenses, partially offset by higher
sales-based incentive compensation and higher salaries associated
with increases in headcount, year-end compensation increases for
continuing employees and one additional payroll day in the second
quarter of fiscal 2020. The decrease in distribution expense
reflects lower Class C distribution fee payments and lower
marketing and promotion costs, partially offset by an increase in
up-front sales commission expense. The increase in service fee
expense reflects higher 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 7 percent, primarily reflecting increases in
information technology spending and higher facilities expenses,
partially offset by lower travel expenses, lower professional
services expenses and a decrease in other corporate expenses.
Operating income decreased 4 percent to $122.0 million in the second quarter of fiscal
2020 from $127.2 million in the
second quarter of fiscal 2019. The Company's operating margin
decreased to 30.0 percent in the second quarter of fiscal 2020 from
30.9 percent in the second quarter of fiscal 2019. As shown in
Attachment 3, on an adjusted basis including the management fee
revenue and excluding the operating expenses of consolidated
investment entities, operating income was down 4 percent
year-over-year. Our adjusted operating margin decreased to 30.5
percent in the second quarter of fiscal 2020 from 31.4 percent in
the second quarter of fiscal 2019.
Non-operating expense totaled $73.4
million in the second quarter of fiscal 2020 versus
$20.3 million of non-operating income
in the second quarter of fiscal 2019. The year-over-year change
primarily reflects a $65.7 million
increase in net losses and other investment income of consolidated
sponsored funds and the Company's investments in other sponsored
strategies, a $27.5 million increase
in the net expenses of consolidated CLO entities and a $0.5 million increase in interest expense. The
increase in interest expense is attributable to borrowings under
the Company's line of credit during the second quarter of fiscal
2020. Such borrowings were fully repaid prior to quarter-end.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 45.3 percent in the second quarter of fiscal 2020 and 25.1
percent in the second quarter of fiscal 2019. Excluding the impact
of consolidated investment entities and other seed capital
investments and the net excess tax benefits associated with the
Company's stock-based compensation plans, the Company's adjusted
effective tax rate, calculated on the same basis, was 24.9 percent
in the second quarter of fiscal 2020 and 26.9 percent in the second
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 $1.5 million and $2.7
million in the second quarters of fiscal 2020 and 2019,
respectively, substantially all relating to the Company's
investment in Hexavest.
As detailed in Attachment 4, net income (loss) attributable to
non-controlling and other beneficial interests was $(44.0) million in the second quarter of fiscal
2020 and $11.3 million in the second
quarter of fiscal 2019. The year-over-year change reflects a
decline in income and gains (losses) of consolidated investment
entities and other seed capital investments driven primarily by
markdowns in position values to reflect securities price declines
in the second quarter of fiscal 2020 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
109.2 million in the second quarter of fiscal 2020 and 110.4
million in the second quarter of fiscal 2019, a decrease of 1
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 111.6
million in the second quarter of fiscal 2020 and 114.2 million in
the second quarter of fiscal 2019, a decrease of 2 percent. The
decline in weighted average diluted shares outstanding further
reflects a decrease in the dilutive effect of in-the-money options
and unvested restricted stock awards due to lower market prices of
the Company's shares.
Second Quarter Fiscal 2020 vs. First Quarter Fiscal
2020
In the second quarter of fiscal 2020, revenue decreased 10
percent to $405.9 million from
$452.6 million in the first quarter
of fiscal 2020. Management fees were down 10 percent, primarily
reflecting a 6 percent decrease in average consolidated assets
under management, a 4 percent decline in consolidated average
annualized management fee rates and the impact of two fewer fee
days in the second quarter of fiscal 2020. Performance fees were
$2.5 million in the second quarter of
fiscal 2020 and $0.2 million in the
first quarter of fiscal 2020. Distribution and service fee revenues
were collectively down 11 percent, reflecting lower managed assets
in fund share classes that are subject to these
fees.
Operating expenses decreased 11 percent to $284.0 million in the second quarter of fiscal
2020 from $317.8 million in the first
quarter of fiscal 2020, reflecting decreases in compensation,
distribution expense, service fee expense, fund-related expenses
and other operating expenses, partially offset by an increase in
amortization of deferred sales commissions. The decrease in
compensation reflects lower operating income-based and investment
performance-based bonus accruals, decreases related to seasonal
benefit costs and payroll taxes that are recognized primarily in
the first fiscal quarter, lower salary and benefit expenses driven
by two fewer payroll days in the second fiscal quarter and a
decrease in severance expenses, partially offset by higher
sales-based incentive compensation. The decrease in compensation
also reflects lower 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
decrease in distribution expense reflects lower Class C
distribution fee payments, lower marketing and promotion costs,
lower intermediary marketing support payments and a decrease in
up-front sales commission expense. The decrease in service fee
expense reflects lower Class A and private fund service fee
payments. The decrease in fund-related expenses reflects lower
sub-advisory fees paid, offset in part by increases in fund
expenses borne by the Company. Other operating expenses decreased 3
percent, primarily reflecting lower travel expenses and lower
professional services expenses, partially offset by increases in
information technology spending and higher facilities expenses. The
increase in amortization of deferred sales commissions reflects
higher private fund commission amortization.
Operating income decreased 9 percent to $122.0 million in the second quarter of fiscal
2020 from $134.7 million in the first
quarter of fiscal 2020. The Company's operating margin increased to
30.0 percent in the second quarter of fiscal 2020 from 29.8 percent
in the first quarter of fiscal 2020. As shown in Attachment 3, on
an adjusted basis including the management fee revenue and
excluding the operating expenses of consolidated investment
entities, operating income was down 10 percent sequentially. Our
adjusted operating margin increased to 30.5 percent in the second
quarter of fiscal 2020 from 30.3 percent in the first quarter of
fiscal 2020.
Non-operating expense totaled $73.4
million in the second quarter of fiscal 2020 versus
$8.4 million of non-operating income
in the first quarter of fiscal 2020. The sequential change reflects
a $66.6 million increase in net
losses and other investment income of consolidated sponsored funds
and the Company's investments in other sponsored strategies, a
$14.7 million increase in the net
expenses of consolidated CLO entities and a $0.5 million increase in interest expense. The
increase in interest expense is attributable to borrowings under
the Company's line of credit during the second quarter of fiscal
2020. Such borrowings were fully repaid prior to quarter-end.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 45.3 percent in the second quarter of fiscal 2020 and 22.8
percent in the first quarter of fiscal 2020. Excluding the impact
of consolidated investment entities and other seed capital
investments and the net excess tax benefits associated with the
Company's stock-based compensation plans, the Company's adjusted
effective tax rate, calculated on the same basis, was 24.9 percent
in the second quarter of fiscal 2020 and 27.6 percent in the first
quarter of fiscal 2020. The Company's effective tax rate is
discussed in greater detail under "Taxation" below.
Equity in net income of affiliates was $1.5 million in the second quarter of fiscal 2020
and $2.3 million in the first quarter
of fiscal 2020, substantially all relating to the Company's
investment in Hexavest.
As detailed in Attachment 4, net income (loss) attributable to
non-controlling and other beneficial interests was $(44.0) million in the second quarter of fiscal
2020 and $8.9 million in the first
quarter of fiscal 2020. The sequential change reflects a decline in
income and gains (losses) of consolidated investment entities and
other seed capital investments driven primarily by markdowns in
position values to reflect securities price declines in the second
quarter of fiscal 2020.
The Company's weighted average basic shares outstanding
decreased to 109.2 million in the second quarter of fiscal 2020
from the 109.4 million in the first quarter of fiscal 2020. The
sequential 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 111.6 million in
the second quarter of fiscal 2020 and 114.7 million in the first
quarter of fiscal 2020, a decrease of 3 percent. The decline in
weighted average diluted shares outstanding further reflects a
decrease in the dilutive effect of in-the-money options and
unvested restricted stock awards due to lower market prices of the
Company's shares.
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Taxation
|
|
The following table
reconciles the U.S. statutory federal income tax rate to the
Company's effective income tax rate:
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|
Three Months
Ended
|
|
April
30,
|
January
31,
|
April
30,
|
|
2020
|
2020
|
2019
|
|
Statutory U.S.
federal income tax rate
|
21.0
|
%
|
21.0
|
%
|
21.0
|
%
|
|
State income tax, net
of federal income
tax
benefits
|
8.8
|
|
4.9
|
|
4.5
|
|
|
Net income
attributable to non-controlling
and
other beneficial interests
|
16.7
|
|
(0.5)
|
|
(0.9)
|
|
|
Other
items
|
1.0
|
|
0.8
|
|
0.7
|
|
|
Net excess tax
benefits from stock-based
compensation
plans
|
(2.2)
|
|
(3.4)
|
|
(0.2)
|
|
|
Effective income
tax rate
|
45.3
|
%
|
22.8
|
%
|
25.1
|
%
|
The Company's income tax provision for the second quarter of
fiscal 2020, second quarter of fiscal 2019 and first quarter of
fiscal 2020 includes $0.9 million,
$0.7 million and $1.3 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
$1.1 million in the second quarter of
fiscal 2020, $0.3 million in the
second quarter of fiscal 2019 and $4.9
million in the first quarter of fiscal 2020.
The Company's calculations of adjusted net income and adjusted
earnings per diluted share remove the impact of gains (losses) and
other investment income (expense) of consolidated investment
entities and other seed capital investments, add back the
management fees and expenses of consolidated investment entities,
and exclude the tax impact of stock-based compensation shortfalls
or windfalls. On this basis, the Company's adjusted effective tax
rate was 24.9 percent in the second quarter of fiscal 2020, 26.9
percent in the second quarter of fiscal 2019 and 27.6 percent in
the first quarter of fiscal 2020. 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.
The Company's adjusted effective tax rate is calculated by
dividing our adjusted income tax expense by adjusted income before
income taxes and equity in net income of affiliates, which was
$119.0 million in the second quarter
of fiscal 2020, $126.5 million in the
second quarter of fiscal 2019 and $134.3
million in the first quarter of fiscal 2020. Adjusted income
before income taxes and equity in net income of affiliates does not
include the allocation to non-controlling interests and removes the
impact of gains (losses) and other investment income (expense) of
the Company's consolidated investment entities and other seed
capital investments and adds back the management fees and expenses
of consolidated investment entities.
The following table reconciles income tax expense (benefit) to
adjusted income tax expense (benefit):
|
(in
thousands)
|
Three Months
Ended
|
|
April
30,
|
January
31,
|
April
30,
|
|
2020
|
2020
|
2019
|
|
Income tax
expense
|
$
|
22,017
|
$
|
32,578
|
$
|
37,069
|
|
Income tax expense
attributable to:
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities
|
|
330
|
|
498
|
|
274
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
sponsored
funds
|
|
296
|
|
332
|
|
335
|
|
Net (gains) losses
and other investment income
|
|
|
|
|
|
|
|
related to
consolidated sponsored funds and
|
|
|
|
|
|
|
|
other seed capital
investments
|
|
1,606
|
|
(1,715)
|
|
(1,086)
|
|
Other (income)
expense of consolidated CLO entities
|
|
4,262
|
|
474
|
|
(2,794)
|
|
Net excess tax
benefits from stock-based
|
|
|
|
|
|
|
|
compensation
plans
|
|
1,059
|
|
4,860
|
|
277
|
|
Adjusted income tax
expense
|
$
|
29,570
|
$
|
37,027
|
$
|
34,075
|
Balance Sheet Information
As of April 30, 2020, the Company
held cash and cash equivalents of $914.9
million and its investments included $36.4 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 six
months of fiscal 2020, the Company used $97.6 million to repurchase and retire
approximately 2.4 million shares of its Non-Voting Common Stock
under its repurchase authorizations. Of the current 8.0 million
share repurchase authorization, approximately 4.0 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 and six months
ended April 30, 2020. To participate in the conference
call, please dial 866-521-4909 (domestic) or 647-427-2311
(international) and refer to "Eaton Vance Corp. Second 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 7456187 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
April 30, 2020, Eaton Vance had
consolidated assets under management of $465.3 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, the scope and duration of the COVID-19 pandemic and its
impact on the global economy or capital markets, client sales and
redemption activity, the continuation of investment advisory,
administration, distribution and service contracts, and other risks
discussed in the Company's filings with the Securities and Exchange
Commission.
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Attachment
1
|
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Eaton Vance
Corp.
|
|
Summary of Results
of Operations
|
|
(in thousands,
except per share figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
2020
|
Q2
2020
|
|
|
|
|
|
|
|
|
|
April
30,
|
January
31,
|
April
30,
|
vs.
|
vs.
|
|
April
30,
|
April
30,
|
%
|
|
|
2020
|
2020
|
2019
|
Q1
2020
|
Q2
2019
|
|
2020
|
2019
|
Change
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
$
|
354,121
|
$
|
394,801
|
$
|
359,384
|
(10)
|
%
|
(1)
|
%
|
|
$
|
748,922
|
$
|
710,134
|
5
|
%
|
|
Distribution and
underwriter fees
|
|
19,122
|
|
21,578
|
|
20,054
|
(11)
|
|
(5)
|
|
|
|
40,700
|
|
43,144
|
(6)
|
|
|
Service
fees
|
|
30,557
|
|
33,939
|
|
29,586
|
(10)
|
|
3
|
|
|
|
64,496
|
|
58,946
|
9
|
|
|
Other
revenue
|
|
2,111
|
|
2,236
|
|
2,837
|
(6)
|
|
(26)
|
|
|
|
4,347
|
|
6,053
|
(28)
|
|
|
Total
revenue
|
|
405,911
|
|
452,554
|
|
411,861
|
(10)
|
|
(1)
|
|
|
|
858,465
|
|
818,277
|
5
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
related costs
|
|
149,072
|
|
171,982
|
|
153,542
|
(13)
|
|
(3)
|
|
|
|
321,054
|
|
307,430
|
4
|
|
|
Distribution
expense
|
|
33,533
|
|
40,003
|
|
35,930
|
(16)
|
|
(7)
|
|
|
|
73,536
|
|
73,438
|
-
|
|
|
Service fee
expense
|
|
26,648
|
|
29,755
|
|
25,921
|
(10)
|
|
3
|
|
|
|
56,403
|
|
51,438
|
10
|
|
|
Amortization of
deferred sales commissions
|
|
6,289
|
|
5,968
|
|
5,571
|
5
|
|
13
|
|
|
|
12,257
|
|
11,118
|
10
|
|
|
Fund-related
expenses
|
|
10,897
|
|
11,067
|
|
9,960
|
(2)
|
|
9
|
|
|
|
21,964
|
|
19,605
|
12
|
|
|
Other
expenses
|
|
57,516
|
|
59,060
|
|
53,764
|
(3)
|
|
7
|
|
|
|
116,576
|
|
106,945
|
9
|
|
|
Total
expenses
|
|
283,955
|
|
317,835
|
|
284,688
|
(11)
|
|
-
|
|
|
|
601,790
|
|
569,974
|
6
|
|
|
Operating
income
|
|
121,956
|
|
134,719
|
|
127,173
|
(9)
|
|
(4)
|
|
|
|
256,675
|
|
248,303
|
3
|
|
|
Non-operating
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses) and
other investment income, net
|
|
(50,512)
|
|
16,090
|
|
15,206
|
NM
|
|
NM
|
|
|
|
(34,422)
|
|
21,039
|
NM
|
|
|
Interest
expense
|
|
(6,364)
|
|
(5,888)
|
|
(5,888)
|
8
|
|
8
|
|
|
|
(12,252)
|
|
(12,019)
|
2
|
|
|
Other income
(expense) of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized loan
obligation (CLO) entities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (losses)
and other investment income, net
|
|
(4,841)
|
|
15,563
|
|
21,794
|
NM
|
|
NM
|
|
|
|
10,722
|
|
27,235
|
(61)
|
|
|
Interest and
other expense
|
|
(11,647)
|
|
(17,396)
|
|
(10,821)
|
(33)
|
|
8
|
|
|
|
(29,043)
|
|
(19,157)
|
52
|
|
|
Total non-operating
income (expense)
|
|
(73,364)
|
|
8,369
|
|
20,291
|
NM
|
|
NM
|
|
|
|
(64,995)
|
|
17,098
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
net income of affiliates
|
|
48,592
|
|
143,088
|
|
147,464
|
(66)
|
|
(67)
|
|
|
|
191,680
|
|
265,401
|
(28)
|
|
|
Income
taxes
|
|
(22,017)
|
|
(32,578)
|
|
(37,069)
|
(32)
|
|
(41)
|
|
|
|
(54,595)
|
|
(64,694)
|
(16)
|
|
|
Equity in net income
of affiliates, net of tax
|
|
1,481
|
|
2,325
|
|
2,735
|
(36)
|
|
(46)
|
|
|
|
3,806
|
|
4,683
|
(19)
|
|
|
Net
income
|
|
28,056
|
|
112,835
|
|
113,130
|
(75)
|
|
(75)
|
|
|
|
140,891
|
|
205,390
|
(31)
|
|
|
Net (income) loss
attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
other beneficial interests
|
|
44,002
|
|
(8,850)
|
|
(11,323)
|
NM
|
|
NM
|
|
|
|
35,152
|
|
(16,782)
|
NM
|
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton
Vance Corp. shareholders
|
$
|
72,058
|
$
|
103,985
|
$
|
101,807
|
(31)
|
|
(29)
|
|
|
$
|
176,043
|
$
|
188,608
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.66
|
$
|
0.95
|
$
|
0.92
|
(31)
|
|
(28)
|
|
|
$
|
1.61
|
$
|
1.69
|
(5)
|
|
|
Diluted
|
$
|
0.65
|
$
|
0.91
|
$
|
0.89
|
(29)
|
|
(27)
|
|
|
$
|
1.55
|
$
|
1.64
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
109,224
|
|
109,380
|
|
110,379
|
-
|
|
(1)
|
|
|
|
109,297
|
|
111,315
|
(2)
|
|
|
Diluted
|
|
111,610
|
|
114,688
|
|
114,249
|
(3)
|
|
(2)
|
|
|
|
113,292
|
|
114,795
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.375
|
$
|
0.375
|
$
|
0.350
|
-
|
|
7
|
|
|
$
|
0.750
|
$
|
0.700
|
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
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
2020
|
Q2
2020
|
|
|
|
|
|
|
|
|
|
April
30,
|
January
31,
|
April
30,
|
|
vs.
|
vs.
|
|
April
30,
|
April
30,
|
|
%
|
|
2020
|
2020
|
2019
|
|
Q1
2020
|
Q2
2019
|
|
2020
|
2019
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corp.
shareholders
|
$
|
72,058
|
$
|
103,985
|
$
|
101,807
|
|
(31)
|
%
|
(29)
|
%
|
|
$
|
176,043
|
$
|
188,608
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities, net of
tax(1)
|
|
947
|
|
1,428
|
|
802
|
|
(34)
|
|
18
|
|
|
|
2,375
|
|
1,342
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored funds, net
of tax(2)
|
|
848
|
|
955
|
|
980
|
|
(11)
|
|
(13)
|
|
|
|
1,803
|
|
2,073
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gains) losses
and other investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to
consolidated sponsored funds and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other seed capital
investments, net of tax(3)
|
|
4,607
|
|
(4,920)
|
|
(3,178)
|
|
NM
|
|
NM
|
|
|
|
(313)
|
|
(3,582)
|
|
(91)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense of consolidated CLO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
entities, net of
tax(4)
|
|
12,226
|
|
1,359
|
|
(8,179)
|
|
800
|
|
NM
|
|
|
|
13,585
|
|
(6,022)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net excess tax
benefit from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
plans
|
|
(1,059)
|
|
(4,860)
|
|
(277)
|
|
(78)
|
|
282
|
|
|
|
(5,919)
|
|
(3,226)
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income attributable to Eaton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vance Corp.
shareholders
|
$
|
89,627
|
$
|
97,947
|
$
|
91,955
|
|
(8)
|
|
(3)
|
|
|
$
|
187,574
|
$
|
179,193
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
diluted share
|
$
|
0.65
|
$
|
0.91
|
$
|
0.89
|
|
(29)
|
|
(27)
|
|
|
$
|
1.55
|
$
|
1.64
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities, net of tax
|
|
0.01
|
|
0.01
|
|
-
|
|
-
|
|
NM
|
|
|
|
0.02
|
|
0.01
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored funds, net
of tax
|
|
0.01
|
|
0.01
|
|
0.01
|
|
-
|
|
-
|
|
|
|
0.02
|
|
0.02
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gains) losses
and other investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to
consolidated sponsored funds and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other seed capital
investments, net of tax
|
|
0.04
|
|
(0.04)
|
|
(0.03)
|
|
NM
|
|
NM
|
|
|
|
-
|
|
(0.03)
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense of consolidated CLO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
entities, net of
tax
|
|
0.11
|
|
0.01
|
|
(0.07)
|
|
NM
|
|
NM
|
|
|
|
0.12
|
|
(0.05)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net excess tax
benefit from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
plans
|
|
(0.02)
|
|
(0.05)
|
|
-
|
|
(60)
|
|
NM
|
|
|
|
(0.05)
|
|
(0.03)
|
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per diluted share
|
$
|
0.80
|
$
|
0.85
|
$
|
0.80
|
|
(6)
|
|
-
|
|
|
$
|
1.66
|
$
|
1.56
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents
management fees eliminated upon the consolidation of sponsored
funds and CLO entities. On a pre-tax basis, these totaled $1.3
million in the three months ended April 30, 2020, $1.9 million in
the three months ended January 31, 2020, $1.1 million in the three
months ended April 30, 2019, $3.2 million in the six months ended
April 30, 2020 and $1.8 million in the six months ended April 30,
2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Represents
expenses of consolidated sponsored funds. On a pre-tax basis, these
totaled $1.1 million in the three months ended April 30, 2020, $1.3
million in the three months ended January 31, 2020, $1.3 million in
the three months ended April 30, 2019, $2.4 million in the six
months ended April 30, 2020 and $2.8 million in the six months
ended April 30, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Represents gains,
losses and other investment income earned on investments in
sponsored strategies, whether accounted for as consolidated funds,
separate accounts or equity investments, as well as the gains and
losses recognized on derivatives used to hedge these investments.
Stated amounts are net of non-controlling interests. On a pre-tax
basis, these totaled $(6.2) million in the three months ended April
30, 2020, $6.6 million in the three months ended January 31, 2020,
$4.3 million in the three months ended April 30, 2019, $0.4 million
in the six months ended April 30, 2020 and $4.8 million in the six
months ended April 30, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Represents other
income and expenses of consolidated CLO entities. On a pre-tax
basis, these totaled $(16.5) million in the three months ended
April 30, 2020, $(1.8) million in the three months ended January
31, 2020, $11.0 million in the three months ended April 30, 2019,
$(18.3) million in the six months ended April 30, 2020 and $8.1
million in the six months ended April 30, 2019.
|
|
Attachment
3
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
2020
|
Q2
2020
|
|
|
|
|
|
|
|
|
|
April
30,
|
January
31,
|
April
30,
|
|
vs.
|
vs.
|
|
April
30,
|
April
30,
|
|
%
|
|
2020
|
2020
|
2019
|
|
Q1
2020
|
Q2
2019
|
|
2020
|
2019
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
405,911
|
$
|
452,554
|
$
|
411,861
|
|
(10)
|
|
(1)
|
|
|
$
|
858,465
|
$
|
818,277
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities(1)
|
|
1,277
|
|
1,925
|
|
1,076
|
|
(34)
|
|
19
|
|
|
|
3,202
|
|
1,801
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total
revenue
|
$
|
407,188
|
$
|
454,479
|
$
|
412,937
|
|
(10)
|
|
(1)
|
|
|
$
|
861,667
|
$
|
820,078
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
$
|
283,955
|
$
|
317,835
|
$
|
284,688
|
|
(11)
|
|
-
|
|
|
$
|
601,790
|
$
|
569,974
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored
funds(2)
|
|
(1,144)
|
|
(1,287)
|
|
(1,314)
|
|
(11)
|
|
(13)
|
|
|
|
(2,432)
|
|
(2,781)
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total
expenses
|
$
|
282,811
|
$
|
316,548
|
$
|
283,374
|
|
(11)
|
|
-
|
|
|
$
|
599,358
|
$
|
567,193
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
121,956
|
$
|
134,719
|
$
|
127,173
|
|
(9)
|
%
|
(4)
|
%
|
|
$
|
256,675
|
$
|
248,303
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities(1)
|
|
1,277
|
|
1,925
|
|
1,076
|
|
(34)
|
|
19
|
|
|
|
3,202
|
|
1,801
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored
funds(2)
|
|
1,144
|
|
1,287
|
|
1,314
|
|
(11)
|
|
(13)
|
|
|
|
2,432
|
|
2,781
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
$
|
124,377
|
$
|
137,931
|
$
|
129,563
|
|
(10)
|
|
(4)
|
|
|
$
|
262,309
|
$
|
252,885
|
|
4
|
|
|
Operating
margin
|
|
30.0
|
%
|
29.8
|
%
|
30.9
|
%
|
1
|
|
(3)
|
|
|
|
29.9
|
%
|
30.3
|
%
|
(1)
|
|
|
Adjusted operating
margin
|
|
30.5
|
%
|
30.3
|
%
|
31.4
|
%
|
1
|
|
(3)
|
|
|
|
30.4
|
%
|
30.8
|
%
|
(1)
|
|
|
|
(1)
Reflects the add-back of management fees eliminated upon
consolidation of sponsored funds and CLO entities.
|
|
(2)
Reflects the exclusion from expenses of the operating expenses of
consolidated sponsored funds.
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
4
|
|
Eaton Vance
Corp.
|
|
Components of net
income attributable
|
|
to non-controlling
and other beneficial interests
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
2020
|
Q2
2020
|
|
|
|
|
|
|
|
|
|
April
30,
|
January
31,
|
April
30,
|
|
vs.
|
vs.
|
|
April
30,
|
April
30,
|
%
|
|
2020
|
2020
|
2019
|
|
Q1
2020
|
Q2
2019
|
|
2020
|
2019
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
sponsored funds
|
$
|
(45,276)
|
$
|
7,177
|
$
|
8,141
|
|
NM
|
%
|
NM
|
%
|
|
$
|
(38,099)
|
$
|
10,563
|
NM
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Majority-owned
subsidiaries
|
|
1,274
|
|
1,673
|
|
3,182
|
|
(24)
|
|
(60)
|
|
|
|
2,947
|
|
6,219
|
(53)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other
beneficial interests
|
$
|
(44,002)
|
$
|
8,850
|
$
|
11,323
|
|
NM
|
|
NM
|
|
|
$
|
(35,152)
|
$
|
16,782
|
NM
|
|
|
|
|
|
|
|
Attachment
5
|
|
Eaton Vance
Corp.
|
|
Balance
Sheet
|
|
(in thousands,
except per share figures)
|
|
|
|
|
|
April
30,
|
|
|
October
31,(1)
|
|
|
|
2020
|
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
914,857
|
|
$
|
557,668
|
|
Management fees and
other receivables
|
|
219,944
|
|
|
237,864
|
|
Investments
|
|
635,079
|
|
|
1,060,739
|
|
Assets of
consolidated CLO entities:
|
|
|
|
|
|
|
Cash
|
|
42,081
|
|
|
48,704
|
|
Bank
loans and other investments
|
|
1,135,609
|
|
|
1,704,270
|
|
Other
assets
|
|
5,555
|
|
|
28,039
|
|
Deferred sales
commissions
|
|
59,813
|
|
|
55,211
|
|
Deferred income
taxes
|
|
60,914
|
|
|
62,661
|
|
Equipment and
leasehold improvements, net
|
|
71,797
|
|
|
72,798
|
|
Operating lease
right-of-use assets
|
|
261,660
|
|
|
-
|
|
Intangible assets,
net
|
|
73,921
|
|
|
75,907
|
|
Goodwill
|
|
259,681
|
|
|
259,681
|
|
Loan to
affiliate
|
|
5,000
|
|
|
5,000
|
|
Other
assets
|
|
100,803
|
|
|
85,087
|
|
Total
assets
|
$
|
3,846,714
|
|
$
|
4,253,629
|
|
|
|
|
|
|
|
|
Liabilities,
Temporary Equity and Permanent Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued
compensation
|
$
|
122,051
|
|
$
|
240,722
|
|
Accounts payable and
accrued expenses
|
|
72,411
|
|
|
89,984
|
|
Dividend
payable
|
|
53,803
|
|
|
55,177
|
|
Debt
|
|
620,930
|
|
|
620,513
|
|
Operating lease
liabilities
|
|
310,860
|
|
|
-
|
|
Liabilities of
consolidated CLO entities:
|
|
|
|
|
|
|
Senior
and subordinated note obligations
|
|
1,088,574
|
|
|
1,617,095
|
|
Other
liabilities
|
|
39,454
|
|
|
51,122
|
|
Other
liabilities
|
|
50,391
|
|
|
108,982
|
|
Total
liabilities
|
|
2,358,474
|
|
|
2,783,595
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary
Equity:
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
211,135
|
|
|
285,915
|
|
Total
temporary equity
|
|
211,135
|
|
|
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, 113,929,794 and 113,143,567 shares,
respectively
|
|
445
|
|
|
442
|
|
Additional paid-in
capital
|
|
12,094
|
|
|
-
|
|
Notes receivable from
stock option exercises
|
|
(7,070)
|
|
|
(8,447)
|
|
Accumulated other
comprehensive loss
|
|
(68,925)
|
|
|
(58,317)
|
|
Retained
earnings
|
|
1,340,559
|
|
|
1,250,439
|
|
Total
permanent equity
|
|
1,277,105
|
|
|
1,184,119
|
|
Total liabilities,
temporary equity and permanent equity
|
$
|
3,846,714
|
|
$
|
4,253,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
6
|
|
Eaton Vance
Corp.
|
|
Consolidated
Assets under Management and Net Flows by Investment
Mandate(1)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
April
30,
|
|
January
31,
|
|
April
30,
|
|
April
30,
|
|
April
30,
|
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Equity assets –
beginning of period(2)
|
$
|
138,708
|
|
$
|
131,895
|
|
$
|
116,990
|
|
$
|
131,895
|
|
$
|
115,772
|
|
|
Sales and other
inflows
|
|
8,316
|
|
|
7,806
|
|
|
5,050
|
|
|
16,122
|
|
|
11,270
|
|
|
Redemptions/outflows
|
|
(8,793)
|
|
|
(6,182)
|
|
|
(4,570)
|
|
|
(14,975)
|
|
|
(10,031)
|
|
|
Net
flows
|
|
(477)
|
|
|
1,624
|
|
|
480
|
|
|
1,147
|
|
|
1,239
|
|
|
Exchanges
|
|
(205)
|
|
|
3
|
|
|
150
|
|
|
(202)
|
|
|
42
|
|
|
Market value
change
|
|
(15,753)
|
|
|
5,186
|
|
|
8,249
|
|
|
(10,567)
|
|
|
8,816
|
|
Equity assets
– end of period
|
$
|
122,273
|
|
$
|
138,708
|
|
$
|
125,869
|
|
$
|
122,273
|
|
$
|
125,869
|
|
Fixed income assets –
beginning of period(3)
|
|
64,262
|
|
|
62,378
|
|
|
56,910
|
|
|
62,378
|
|
|
54,339
|
|
|
Sales and other
inflows
|
|
7,898
|
|
|
5,086
|
|
|
5,237
|
|
|
12,984
|
|
|
11,782
|
|
|
Redemptions/outflows
|
|
(7,719)
|
|
|
(3,947)
|
|
|
(4,452)
|
|
|
(11,666)
|
|
|
(9,318)
|
|
|
Net
flows
|
|
179
|
|
|
1,139
|
|
|
785
|
|
|
1,318
|
|
|
2,464
|
|
|
Exchanges
|
|
154
|
|
|
23
|
|
|
71
|
|
|
177
|
|
|
397
|
|
|
Market value
change
|
|
(3,248)
|
|
|
722
|
|
|
765
|
|
|
(2,526)
|
|
|
1,331
|
|
Fixed income
assets – end of period
|
$
|
61,347
|
|
$
|
64,262
|
|
$
|
58,531
|
|
$
|
61,347
|
|
$
|
58,531
|
|
Floating-rate income
assets – beginning of period
|
|
33,836
|
|
|
35,103
|
|
|
40,943
|
|
|
35,103
|
|
|
44,837
|
|
|
Sales and other
inflows
|
|
1,937
|
|
|
1,689
|
|
|
2,079
|
|
|
3,626
|
|
|
5,645
|
|
|
Redemptions/outflows
|
|
(5,096)
|
|
|
(3,046)
|
|
|
(3,657)
|
|
|
(8,142)
|
|
|
(10,135)
|
|
|
Net
flows
|
|
(3,159)
|
|
|
(1,357)
|
|
|
(1,578)
|
|
|
(4,516)
|
|
|
(4,490)
|
|
|
Exchanges
|
|
(119)
|
|
|
(27)
|
|
|
(57)
|
|
|
(146)
|
|
|
(323)
|
|
|
Market value
change
|
|
(2,736)
|
|
|
117
|
|
|
442
|
|
|
(2,619)
|
|
|
(274)
|
|
Floating-rate
income assets – end of period
|
$
|
27,822
|
|
$
|
33,836
|
|
$
|
39,750
|
|
$
|
27,822
|
|
$
|
39,750
|
|
Alternative assets –
beginning of period(4)
|
|
8,553
|
|
|
8,372
|
|
|
9,991
|
|
|
8,372
|
|
|
12,139
|
|
|
Sales and other
inflows
|
|
498
|
|
|
675
|
|
|
802
|
|
|
1,173
|
|
|
1,846
|
|
|
Redemptions/outflows
|
|
(1,182)
|
|
|
(593)
|
|
|
(1,275)
|
|
|
(1,775)
|
|
|
(4,539)
|
|
|
Net
flows
|
|
(684)
|
|
|
82
|
|
|
(473)
|
|
|
(602)
|
|
|
(2,693)
|
|
|
Exchanges
|
|
(14)
|
|
|
-
|
|
|
(149)
|
|
|
(14)
|
|
|
(176)
|
|
|
Market value
change
|
|
(629)
|
|
|
99
|
|
|
40
|
|
|
(530)
|
|
|
139
|
|
Alternative assets
– end of period
|
$
|
7,226
|
|
$
|
8,553
|
|
$
|
9,409
|
|
$
|
7,226
|
|
$
|
9,409
|
|
Parametric custom
portfolios assets – beginning of
period(5)
|
|
175,318
|
|
|
164,895
|
|
|
141,050
|
|
|
164,895
|
|
|
134,345
|
|
|
Sales and other
inflows
|
|
13,896
|
|
|
9,745
|
|
|
9,099
|
|
|
23,641
|
|
|
19,263
|
|
|
Redemptions/outflows
|
|
(12,596)
|
|
|
(6,221)
|
|
|
(5,696)
|
|
|
(18,817)
|
|
|
(10,996)
|
|
|
Net
flows
|
|
1,300
|
|
|
3,524
|
|
|
3,403
|
|
|
4,824
|
|
|
8,267
|
|
|
Exchanges
|
|
4
|
|
|
1
|
|
|
(22)
|
|
|
5
|
|
|
53
|
|
|
Market value
change
|
|
(17,926)
|
|
|
6,898
|
|
|
9,173
|
|
|
(11,028)
|
|
|
10,939
|
|
Parametric custom
portfolios assets – end of period
|
$
|
158,696
|
|
$
|
175,318
|
|
$
|
153,604
|
|
$
|
158,696
|
|
$
|
153,604
|
|
Parametric overlay
services assets – beginning of period
|
|
97,514
|
|
|
94,789
|
|
|
78,768
|
|
|
94,789
|
|
|
77,871
|
|
|
Sales and other
inflows
|
|
29,025
|
|
|
21,313
|
|
|
14,559
|
|
|
50,338
|
|
|
31,681
|
|
|
Redemptions/outflows
|
|
(35,494)
|
|
|
(20,199)
|
|
|
(12,544)
|
|
|
(55,693)
|
|
|
(30,352)
|
|
|
Net
flows
|
|
(6,469)
|
|
|
1,114
|
|
|
2,015
|
|
|
(5,355)
|
|
|
1,329
|
|
|
Exchanges
|
|
178
|
|
|
-
|
|
|
-
|
|
|
178
|
|
|
-
|
|
|
Market value
change
|
|
(3,304)
|
|
|
1,611
|
|
|
1,992
|
|
|
(1,693)
|
|
|
3,575
|
|
Parametric overlay
services assets – end of period
|
$
|
87,919
|
|
$
|
97,514
|
|
$
|
82,775
|
|
$
|
87,919
|
|
$
|
82,775
|
|
Total assets under
management – beginning of period
|
|
518,191
|
|
|
497,432
|
|
|
444,652
|
|
|
497,432
|
|
|
439,303
|
|
|
Sales and other
inflows
|
|
61,570
|
|
|
46,314
|
|
|
36,826
|
|
|
107,884
|
|
|
81,487
|
|
|
Redemptions/outflows
|
|
(70,880)
|
|
|
(40,188)
|
|
|
(32,194)
|
|
|
(111,068)
|
|
|
(75,371)
|
|
|
Net
flows
|
|
(9,310)
|
|
|
6,126
|
|
|
4,632
|
|
|
(3,184)
|
|
|
6,116
|
|
|
Exchanges
|
|
(2)
|
|
|
-
|
|
|
(7)
|
|
|
(2)
|
|
|
(7)
|
|
|
Market value
change
|
|
(43,596)
|
|
|
14,633
|
|
|
20,661
|
|
|
(28,963)
|
|
|
24,526
|
|
Total assets under
management – end of period
|
$
|
465,283
|
|
$
|
518,191
|
|
$
|
469,938
|
|
$
|
465,283
|
|
$
|
469,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 12 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 in the first
quarter of fiscal 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. 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 in the first quarter of fiscal
2020.
|
|
|
|
|
|
|
|
|
|
|
Attachment
7
|
|
Eaton Vance
Corp.
|
|
Consolidated
Assets under Management and Net Flows by Investment
Vehicle(1)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
April
30,
|
|
January
31,
|
|
April
30,
|
|
April
30,
|
|
April
30,
|
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Funds – beginning of
period
|
$
|
180,539
|
|
$
|
174,068
|
|
$
|
162,750
|
|
$
|
174,068
|
|
$
|
164,968
|
|
|
Sales and other
inflows
|
|
14,316
|
|
|
11,496
|
|
|
10,510
|
|
|
25,812
|
|
|
24,233
|
|
|
Redemptions/outflows
|
|
(17,297)
|
|
|
(9,161)
|
|
|
(9,399)
|
|
|
(26,458)
|
|
|
(24,824)
|
|
|
Net
flows
|
|
(2,981)
|
|
|
2,335
|
|
|
1,111
|
|
|
(646)
|
|
|
(591)
|
|
|
Exchanges
|
|
(3)
|
|
|
-
|
|
|
(7)
|
|
|
(3)
|
|
|
(105)
|
|
|
Market value
change
|
|
(17,151)
|
|
|
4,136
|
|
|
7,108
|
|
|
(13,015)
|
|
|
6,690
|
|
Funds
– end of period
|
$
|
160,404
|
|
$
|
180,539
|
|
$
|
170,962
|
|
$
|
160,404
|
|
$
|
170,962
|
|
Institutional
separate accounts – beginning of period
|
|
175,258
|
|
|
173,331
|
|
|
155,224
|
|
|
173,331
|
|
|
153,996
|
|
|
Sales and other
inflows
|
|
33,732
|
|
|
23,605
|
|
|
16,327
|
|
|
57,337
|
|
|
37,156
|
|
|
Redemptions/outflows
|
|
(41,869)
|
|
|
(25,449)
|
|
|
(16,499)
|
|
|
(67,318)
|
|
|
(38,828)
|
|
|
Net
flows
|
|
(8,137)
|
|
|
(1,844)
|
|
|
(172)
|
|
|
(9,981)
|
|
|
(1,672)
|
|
|
Exchanges
|
|
6
|
|
|
-
|
|
|
-
|
|
|
6
|
|
|
98
|
|
|
Market value
change
|
|
(12,372)
|
|
|
3,771
|
|
|
5,408
|
|
|
(8,601)
|
|
|
8,038
|
|
Institutional
separate accounts – end of period
|
$
|
154,755
|
|
$
|
175,258
|
|
$
|
160,460
|
|
$
|
154,755
|
|
$
|
160,460
|
|
Individual separate
accounts – beginning of period
|
|
162,394
|
|
|
150,033
|
|
|
126,678
|
|
|
150,033
|
|
|
120,339
|
|
|
Sales and other
inflows
|
|
13,522
|
|
|
11,213
|
|
|
9,989
|
|
|
24,735
|
|
|
20,098
|
|
|
Redemptions/outflows
|
|
(11,714)
|
|
|
(5,578)
|
|
|
(6,296)
|
|
|
(17,292)
|
|
|
(11,719)
|
|
|
Net
flows
|
|
1,808
|
|
|
5,635
|
|
|
3,693
|
|
|
7,443
|
|
|
8,379
|
|
|
Exchanges
|
|
(5)
|
|
|
-
|
|
|
-
|
|
|
(5)
|
|
|
-
|
|
|
Market value
change
|
|
(14,073)
|
|
|
6,726
|
|
|
8,145
|
|
|
(7,347)
|
|
|
9,798
|
|
Individual
separate accounts – end of period
|
$
|
150,124
|
|
$
|
162,394
|
|
$
|
138,516
|
|
$
|
150,124
|
|
$
|
138,516
|
|
Total assets under
management – beginning of period
|
|
518,191
|
|
|
497,432
|
|
|
444,652
|
|
|
497,432
|
|
|
439,303
|
|
|
Sales and other
inflows
|
|
61,570
|
|
|
46,314
|
|
|
36,826
|
|
|
107,884
|
|
|
81,487
|
|
|
Redemptions/outflows
|
|
(70,880)
|
|
|
(40,188)
|
|
|
(32,194)
|
|
|
(111,068)
|
|
|
(75,371)
|
|
|
Net
flows
|
|
(9,310)
|
|
|
6,126
|
|
|
4,632
|
|
|
(3,184)
|
|
|
6,116
|
|
|
Exchanges
|
|
(2)
|
|
|
-
|
|
|
(7)
|
|
|
(2)
|
|
|
(7)
|
|
|
Market value
change
|
|
(43,596)
|
|
|
14,633
|
|
|
20,661
|
|
|
(28,963)
|
|
|
24,526
|
|
Total assets under
management – end of period
|
$
|
465,283
|
|
$
|
518,191
|
|
$
|
469,938
|
|
$
|
465,283
|
|
$
|
469,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 12 for directly managed assets and flows
of 49 percent‐owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
8
|
|
Eaton Vance
Corp.
|
|
Consolidated
Assets under Management by Investment
Mandate(1)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
30,
|
|
|
January
31,
|
|
%
|
|
|
April
30,
|
|
%
|
|
|
|
|
2020
|
|
|
2020
|
|
Change
|
|
|
2019
|
|
Change
|
|
Equity(2)
|
$
|
122,273
|
|
$
|
138,708
|
|
-12%
|
|
$
|
125,869
|
|
-3%
|
|
Fixed
income(3)
|
|
61,347
|
|
|
64,262
|
|
-5%
|
|
|
58,531
|
|
5%
|
|
Floating-rate
income
|
|
27,822
|
|
|
33,836
|
|
-18%
|
|
|
39,750
|
|
-30%
|
|
Alternative(4)
|
|
7,226
|
|
|
8,553
|
|
-16%
|
|
|
9,409
|
|
-23%
|
|
Parametric custom
portfolios(5)
|
|
158,696
|
|
|
175,318
|
|
-9%
|
|
|
153,604
|
|
3%
|
|
Parametric overlay
services
|
|
87,919
|
|
|
97,514
|
|
-10%
|
|
|
82,775
|
|
6%
|
|
Total
|
$
|
465,283
|
|
$
|
518,191
|
|
-10%
|
|
$
|
469,938
|
|
-1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 12 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
9
|
|
Eaton Vance
Corp.
|
|
Consolidated
Assets under Management by Investment
Vehicle(1)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
30,
|
|
|
January
31,
|
|
%
|
|
|
April
30,
|
|
%
|
|
|
|
|
2020
|
|
|
2020
|
|
Change
|
|
|
2019
|
|
Change
|
|
Open-end
funds
|
$
|
94,717
|
|
$
|
108,290
|
|
-13%
|
|
$
|
104,367
|
|
-9%
|
|
Closed-end
funds
|
|
21,712
|
|
|
24,873
|
|
-13%
|
|
|
24,503
|
|
-11%
|
|
Private
funds(2)
|
|
43,975
|
|
|
47,376
|
|
-7%
|
|
|
42,092
|
|
4%
|
|
Institutional
separate accounts
|
|
154,755
|
|
|
175,258
|
|
-12%
|
|
|
160,460
|
|
-4%
|
|
Individual separate
accounts
|
|
150,124
|
|
|
162,394
|
|
-8%
|
|
|
138,516
|
|
8%
|
|
Total
|
$
|
465,283
|
|
$
|
518,191
|
|
-10%
|
|
$
|
469,938
|
|
-1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 12 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
10
|
|
Eaton Vance
Corp.
|
|
Consolidated
Assets under Management by Investment
Affiliate(1)(2)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
30,
|
|
|
January
31,
|
|
%
|
|
|
April
30,
|
|
%
|
|
|
|
|
2020
|
|
|
2020
|
|
Change
|
|
|
2019
|
|
Change
|
|
Eaton Vance
Management(3)
|
$
|
133,927
|
|
$
|
149,994
|
|
-11%
|
|
$
|
147,602
|
|
-9%
|
|
Parametric
|
|
287,426
|
|
|
320,848
|
|
-10%
|
|
|
282,169
|
|
2%
|
|
Atlanta
Capital
|
|
22,645
|
|
|
25,552
|
|
-11%
|
|
|
23,019
|
|
-2%
|
|
Calvert(4)
|
|
21,285
|
|
|
21,797
|
|
-2%
|
|
|
17,148
|
|
24%
|
|
Total
|
$
|
465,283
|
|
$
|
518,191
|
|
-10%
|
|
$
|
469,938
|
|
-1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 12 for directly managed assets and flows
of 49 percent-owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
The Company's
policy for reporting managed assets of investment portfolios
overseen by multiple Eaton Vance affiliates is to base the
classification on the strategy's primary identity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
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
11
|
|
Eaton Vance
Corp.
|
|
Average Annualized
Management Fee Rates by Investment
Mandate(1)(2)
|
|
(in basis points
on average managed assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
Q2
2020
|
Q2
2020
|
|
|
|
|
|
|
April
30,
|
January
31,
|
April
30,
|
vs.
|
vs.
|
|
April
30,
|
April
30,
|
%
|
|
|
2020
|
2020
|
2019
|
Q1
2020
|
Q2
2019
|
|
2020
|
2019
|
Change
|
|
Equity(3)
|
55.1
|
57.0
|
57.1
|
-3%
|
-4%
|
|
56.6
|
56.9
|
-1%
|
|
Fixed
income(4)
|
40.1
|
41.4
|
41.7
|
-3%
|
-4%
|
|
40.9
|
41.7
|
-2%
|
|
Floating-rate
income
|
49.8
|
49.9
|
50.0
|
0%
|
0%
|
|
50.2
|
49.9
|
1%
|
|
Alternative(5)
|
62.2
|
64.5
|
59.4
|
-4%
|
5%
|
|
63.8
|
58.6
|
9%
|
|
Parametric custom
portfolios(6)
|
14.5
|
15.2
|
14.6
|
-5%
|
-1%
|
|
14.9
|
14.5
|
3%
|
|
Parametric overlay
services
|
4.9
|
4.9
|
5.3
|
0%
|
-8%
|
|
4.9
|
5.2
|
-6%
|
|
Total
|
29.7
|
30.8
|
31.8
|
-4%
|
-7%
|
|
30.5
|
31.8
|
-4%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes
performance-based fees, which were $2.5 million in the three months
ended April 30, 2020, $0.2 million in the three months ended
January 31, 2020, $1.8 million in the three months ended April 30,
2019, $2.7 million in the six months ended April 30, 2020 and $1.5
million in the six months ended April 30, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Excludes
management fees earned on consolidated investment entities that are
eliminated in consolidation, which were $1.3 million in the three
months ended April 30, 2020, $1.9 million in the three months ended
January 31, 2020, $1.1 million in the three months ended April 30,
2019, $3.2 million in the six months ended April 30, 2020 and $1.8
million in the six months ended April 30, 2019. The managed assets
and flows of consolidated investment entities are reflected in our
consolidated totals.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Includes balanced
and other multi‐asset mandates. Excludes equity mandates reported
as Parametric custom portfolios.
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
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 in the first
quarter of fiscal 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Consists of
absolute return, commodity and currency mandates.
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
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. 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 in the first quarter of fiscal
2020.
|
|
Attachment
12
|
|
Eaton Vance
Corp.
|
|
Hexavest Inc.
Assets under Management and Net Flows
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
April
30,
|
|
January
31,
|
|
April
30,
|
|
April
30,
|
|
April
30,
|
|
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Eaton Vance
distributed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance sponsored
funds – beginning of period(1)
|
$
|
130
|
|
$
|
152
|
|
$
|
177
|
|
$
|
152
|
|
$
|
159
|
|
Sales and other
inflows
|
|
4
|
|
|
3
|
|
|
4
|
|
|
7
|
|
|
44
|
|
Redemptions/outflows
|
|
(42)
|
|
|
(26)
|
|
|
(3)
|
|
|
(68)
|
|
|
(28)
|
|
Net
flows
|
|
(38)
|
|
|
(23)
|
|
|
1
|
|
|
(61)
|
|
|
16
|
|
Market value
change
|
|
(22)
|
|
|
1
|
|
|
6
|
|
|
(21)
|
|
|
9
|
|
Eaton Vance
sponsored funds – end of period
|
$
|
70
|
|
$
|
130
|
|
$
|
184
|
|
$
|
70
|
|
$
|
184
|
|
Eaton Vance
distributed separate accounts –
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of period(2)
|
$
|
1,566
|
|
$
|
1,563
|
|
$
|
2,065
|
|
$
|
1,563
|
|
$
|
2,169
|
|
Sales and other
inflows
|
|
24
|
|
|
6
|
|
|
3
|
|
|
30
|
|
|
24
|
|
Redemptions/outflows
|
|
(338)
|
|
|
(22)
|
|
|
(79)
|
|
|
(360)
|
|
|
(219)
|
|
Net
flows
|
|
(314)
|
|
|
(16)
|
|
|
(76)
|
|
|
(330)
|
|
|
(195)
|
|
Market value
change
|
|
(251)
|
|
|
19
|
|
|
87
|
|
|
(232)
|
|
|
102
|
|
Eaton Vance
distributed separate accounts – end of period
|
$
|
1,001
|
|
$
|
1,566
|
|
$
|
2,076
|
|
$
|
1,001
|
|
$
|
2,076
|
|
Total Eaton Vance
distributed – beginning of period
|
$
|
1,696
|
|
$
|
1,715
|
|
$
|
2,242
|
|
$
|
1,715
|
|
$
|
2,328
|
|
Sales and other
inflows
|
|
28
|
|
|
9
|
|
|
7
|
|
|
37
|
|
|
68
|
|
Redemptions/outflows
|
|
(380)
|
|
|
(48)
|
|
|
(82)
|
|
|
(428)
|
|
|
(247)
|
|
Net
flows
|
|
(352)
|
|
|
(39)
|
|
|
(75)
|
|
|
(391)
|
|
|
(179)
|
|
Market value
change
|
|
(273)
|
|
|
20
|
|
|
93
|
|
|
(253)
|
|
|
111
|
|
Total Eaton Vance
distributed – end of period
|
$
|
1,071
|
|
$
|
1,696
|
|
$
|
2,260
|
|
$
|
1,071
|
|
$
|
2,260
|
|
Hexavest directly
distributed – beginning of period(3)
|
$
|
11,296
|
|
$
|
11,640
|
|
$
|
10,988
|
|
$
|
11,640
|
|
$
|
11,467
|
|
Sales and other
inflows
|
|
304
|
|
|
96
|
|
|
700
|
|
|
400
|
|
|
1,219
|
|
Redemptions/outflows
|
|
(2,120)
|
|
|
(554)
|
|
|
(473)
|
|
|
(2,674)
|
|
|
(1,607)
|
|
Net
flows
|
|
(1,816)
|
|
|
(458)
|
|
|
227
|
|
|
(2,274)
|
|
|
(388)
|
|
Market value
change
|
|
(1,921)
|
|
|
114
|
|
|
419
|
|
|
(1,807)
|
|
|
555
|
|
Hexavest directly
distributed – end of period
|
$
|
7,559
|
|
$
|
11,296
|
|
$
|
11,634
|
|
$
|
7,559
|
|
$
|
11,634
|
|
Total Hexavest
managed assets – beginning of period
|
$
|
12,992
|
|
$
|
13,355
|
|
$
|
13,230
|
|
$
|
13,355
|
|
$
|
13,795
|
|
Sales and other
inflows
|
|
332
|
|
|
105
|
|
|
707
|
|
|
437
|
|
|
1,287
|
|
Redemptions/outflows
|
|
(2,500)
|
|
|
(602)
|
|
|
(555)
|
|
|
(3,102)
|
|
|
(1,854)
|
|
Net
flows
|
|
(2,168)
|
|
|
(497)
|
|
|
152
|
|
|
(2,665)
|
|
|
(567)
|
|
Market value
change
|
|
(2,194)
|
|
|
134
|
|
|
512
|
|
|
(2,060)
|
|
|
666
|
|
Total Hexavest
managed assets – end of period
|
$
|
8,630
|
|
$
|
12,992
|
|
$
|
13,894
|
|
$
|
8,630
|
|
$
|
13,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 6 through
11.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 6 through
11.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(3)
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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 6 through
11.
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([1]) Effective this quarter,
the Company's calculation of non-U.S. GAAP financial measures
excludes the impact of consolidated sponsored funds and
consolidated collateralized loan obligation (CLO) entities
(collectively, consolidated investment entities) and other seed
capital investments. Adjustments to GAAP operating income include
the add-back of management fee revenue received from consolidated
investment entities that are eliminated in consolidation and the
non-management expenses of consolidated sponsored funds recognized
in consolidation. Adjustments to GAAP net income attributable to
Eaton Vance Corp. shareholders include the after-tax impact of
these adjustments to operating income and the elimination of gains
(losses) and other investment income (expense) of consolidated
investment entities and other seed capital investments included in
non-operating income (expense), as determined net of tax and
non-controlling and other beneficial interests. All prior period
non-U.S. GAAP financial measures have been updated to reflect this
change as shown in Attachments 2 and 3. Please see note 2
below.
([2]) 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, adjusted earnings per diluted share and adjusted
operating income, 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, earnings per diluted share and operating income
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. The
adjusted measures also exclude the impact of consolidated
investment entities and other seed capital investments. Management
and our Board of Directors, as well as certain of our outside
investors, consider the 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.
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SOURCE Eaton Vance Corp.