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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): November 22, 2011

                     EATON VANCE CORP.                           
(Exact name of registrant as specified in its charter) 

 

                  Maryland                                    1-8100                                     04-2718215                      
(State or other jurisdiction  (Commission File Number)  (IRS Employer Identification No.) 
of incorporation)     

 

Two International Place, Boston, Massachusetts       02110      
(Address of principal executive offices)  (Zip Code) 

 

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

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

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

 

Page 1 of 14

 

INFORMATION INCLUDED IN THE REPORT

Item 2.02.   Results of Operations and Financial Condition

     Registrant has reported its results of operations for the three months and fiscal year ended October 31, 2011, as described in Registrant’s news release dated November 22, 2011, a copy of which is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

Item 9.01.   Financial Statements and Exhibits

Exhibit No.  Document 
99.1  Press release issued by the Registrant dated November 22, 2011. 

 

Page 2 of 14

 

SIGNATURES

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

    EATON VANCE CORP. 
    (Registrant) 
 
 
Date:    November 22, 2011  /s/ Robert J. Whelan                                         
    Robert J. Whelan, Chief Financial Officer 

 

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EXHIBIT INDEX

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

Exhibit No.  Description 
99.1  Copy of Registrant's news release dated November 22, 2011. 

 

Page 4 of 14

 

Exhibit 99.1


  Contact:
Robert Whelan - 617.482.8260
rwhelan@eatonvance.com

Eaton Vance Corp.
Report for the Three Months and Fiscal Year Ended October 31, 2011

Boston, MA, November 22, 2011 – Adjusting for items management deems non-recurring or non-operating, Eaton Vance Corp. (NYSE: EV) earned a record $2.00 of adjusted earnings per diluted share(1) in the fiscal year ended October 31, 2011, an increase of 28 percent over the $1.56 of adjusted earnings per diluted share in the fiscal year ended October 31, 2010. Adjusted earnings per diluted share were $0.47 for the fourth quarters of fiscal 2011 and fiscal 2010 and $0.55 in the third quarter of fiscal 2011.

As determined under U.S. generally accepted accounting principles (“GAAP”), the Company earned $1.75 per diluted share in the fiscal year ended October 31, 2011 compared to $1.40 per diluted share in the fiscal year ended October 31, 2010. GAAP earnings per diluted share were $0.40 in the fourth quarter of fiscal 2011, $0.41 in the fourth quarter of fiscal 2010 and $0.55 in the third quarter of fiscal 2011. Adjusted earnings differed from GAAP earnings due primarily to adjustments in connection with increases in the estimated redemption value of non-controlling interests in our affiliates redeemable at other than fair value, which totaled $0.25, $0.15, $0.07 and $0.06 per diluted share in fiscal 2011, fiscal 2010, the fourth quarter of fiscal 2011 and the fourth quarter of fiscal 2010, respectively.

Net inflows of $3.9 billion in fiscal 2011 compare to net inflows of $16.3 billion in fiscal 2010. The Company’s internal growth rate (net inflows divided by beginning of period long-term assets managed) was 2 percent in fiscal 2011 and 11 percent in fiscal 2010. Net outflows of $2.7 billion from long-term funds and separate accounts in the fourth quarter of fiscal 2011 compare to net inflows of $3.2 billion in the fourth quarter of fiscal 2010 and $1.9 billion in the third quarter of fiscal 2011.

Assets under management on October 31, 2011 were $188.2 billion, an increase of 2 percent from the $185.2 billion of managed assets as of October 31, 2010 and a decrease of 5 percent from the $199.0 billion of managed assets as of July 31, 2011.

“Amid weak market conditions, Eaton Vance closed fiscal 2011 with a difficult fourth quarter,” said Thomas E. Faust Jr., Chairman and Chief Executive Officer. “Net flows for the quarter were negative, and revenues and adjusted earnings were down sequentially. Even as we face near-term challenges, I continue to believe that the Company’s strong financial position and diversity of leading investment franchises position us well for continued growth and success over the course of market cycles.”

Comparison to Fourth Quarter of Fiscal 2010

Long-term fund net outflows of $3.1 billion in the fourth quarter of fiscal 2011 compare to $3.4 billion of long-term fund net inflows in the fourth quarter of fiscal 2010, and reflect $6.2 billion of

__________________________
(1) Adjusted earnings per diluted share reflects the add back of adjustments in connection with changes in the 
estimated redemption value of non-controlling interests in our affiliates redeemable at other than fair value 
(“non-controlling interest value adjustments”), closed-end structuring fees and other items management 
deems non-recurring or non-operating. See reconciliation provided in Attachment 2 on page 7 for more 
information on adjusting items. 

 

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fund sales and other inflows and $9.3 billion of fund redemptions and other outflows. The $0.5 billion of institutional separate account net inflows in the fourth quarter of fiscal 2011 compare to $0.7 billion of institutional separate account net inflows in the fourth quarter of fiscal 2010, and reflect gross inflows of $3.0 billion and $2.5 billion of outflows. The $0.1 billion of high-net-worth separate account net inflows in the fourth quarter of fiscal 2011 compare to $0.2 billion of high-net-worth separate account net inflows in the fourth quarter of fiscal 2010 and reflect gross inflows of $0.6 billion and $0.5 billion of outflows. Retail managed account net outflows of $0.2 billion in the fourth quarter of fiscal 2011 compare to $1.1 billion of retail managed account net outflows in the fourth quarter of fiscal 2010. Fourth quarter fiscal 2010 net outflows reflect a $1.5 billion reduction in Parametric Portfolio Associates’ retail managed account (RMA) overlay assets as a result of the integration of Bank of America’s RMA program into the Merrill Lynch RMA program following Bank of America’s 2009 acquisition of Merrill Lynch. Tables 1-4 on pages 9 and 10 summarize the Company’s assets under management and asset flows by investment mandate.

Revenue in the fourth quarter of fiscal 2011 decreased $9.0 million, or 3 percent, to $294.6 million from revenue of $303.6 million in the fourth quarter of fiscal 2010. Investment advisory and administration fees increased 4 percent to $239.8 million, reflecting primarily a 6 percent increase in average assets under management. Distribution and underwriter fees decreased 23 percent due to a decrease in average fund assets on which distribution fees are collected and a reduction in underwriter fees collected on Class A fund sales. Service fee revenue decreased 10 percent due to a decrease in average fund assets subject to service fees. Other revenue, which decreased by $7.7 million, included $2.7 million of net investment losses (net losses plus dividend income earned) related to consolidated funds in the fourth quarter of fiscal 2011 compared to $4.8 million of net investment income in the fourth quarter of fiscal 2010.

Operating expenses decreased $4.8 million, or 2 percent, to $192.7 million in the fourth quarter of fiscal 2011 compared to operating expenses of $197.5 million in the fourth quarter of fiscal 2010. Compensation expense decreased 8 percent due to decreases in bonus accruals, payroll taxes and sales-based incentives offset by increases in employee headcount and higher base salaries, stock-based compensation and employee benefits. Distribution expense was substantially unchanged from the prior fiscal year’s fourth quarter, as increases in Class C distribution expense and revenue sharing payments were offset by decreases in marketing expense and commissions paid on certain sales of Class A shares. Service fee expense was substantially unchanged from the prior fiscal year’s fourth quarter. Amortization of deferred sales commissions decreased 27 percent, reflecting a decrease in Class C amortization. Fund expenses increased 59 percent from the fourth quarter of fiscal 2010 due to increases in subadvisory expenses and fund expenses contractually borne by the Company. Other expenses increased 6 percent, reflecting increases in information technology and facilities, offset by a decrease in professional services.

Operating income in the fourth quarter of fiscal 2011 was $101.9 million, a decrease of 4 percent over operating income of $106.1 million in the fourth quarter of fiscal 2010. The Company’s operating margin declined to 34.6 percent in the fourth quarter of fiscal 2011 from 34.9 percent in the fourth quarter of fiscal 2010.

Interest income decreased 2 percent in the fourth quarter of fiscal 2011 compared to the fourth quarter of fiscal 2010 due to a decrease in average effective interest rates. In the fourth quarter of fiscal 2011, the Company recognized $0.2 million of net investment losses, primarily reflecting losses related to the Company’s seed capital investments. The Company recognized $1.1 million of net investment losses in the fourth quarter of fiscal 2010. Also included in other income and expenses for the fourth quarter of fiscal 2011 are net losses of $11.4 million associated with the consolidation of a CLO entity primarily attributable to a decrease in the fair market value of the bank loan investments held by the entity. This loss was substantially offset by an increase in net loss attributable to non-controlling and other beneficial interests, as the consolidated CLO entity loss is largely borne by the CLO entity’s outside investors rather than the Company.

The Company’s effective tax rate, calculated as a percentage of income before income taxes and equity in net income (loss) of affiliates, was 45.5 percent and 38.0 percent in the fourth quarter of fiscal 2011 and fiscal 2010, respectively. The increase in the Company’s effective tax rate was due primarily to losses recognized by the consolidated CLO entity, which is not subject to tax.

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In the fourth quarter of fiscal 2011, net income attributable to non-controlling and other beneficial interests decreased $11.1 million from the fourth quarter of fiscal 2010, primarily reflecting $12.4 million of consolidated CLO entity losses borne by other beneficial interest holders and a $0.1 million increase in non-controlling beneficial interest associated with the Company’s majority-owned subsidiaries and consolidated funds. Also included in non-controlling and other beneficial interests in the fourth quarter of fiscal 2011 and the fourth quarter of fiscal 2010 are $8.5 million and $7.3 million, respectively, that relate to non-controlling interest value adjustments in our subsidiary Atlanta Capital Management that are attributable to its profit growth over the respective preceding twelve months ended October 31.

Adjusted net income attributable to Eaton Vance Corp. shareholders(2) was $55.7 million in the fourth quarter of fiscal 2011 compared to $58.1 million in the fourth quarter of fiscal 2010, a decrease of 4 percent. GAAP net income attributable to Eaton Vance Corp. shareholders was $46.8 million in the fourth quarter of fiscal 2011 and $50.3 million in the fourth quarter of fiscal 2010. Adjusted net income attributable to Eaton Vance Corp. shareholders differed from GAAP net income attributable to Eaton Vance Corp. shareholders due primarily to the increases in the estimated redemption value of non-controlling interests in our subsidiary Atlanta Capital Management described in the preceding paragraph.

Comparison to Third Quarter of Fiscal 2011

Long-term fund net outflows of $3.1 billion in the fourth quarter of fiscal 2011 compare to $0.1 billion of long-term fund net inflows in the third quarter of fiscal 2011. The $0.5 billion of institutional separate account net inflows in the fourth quarter of fiscal 2011 compare to institutional separate account net inflows of $1.8 billion in the third quarter of fiscal 2011. The $0.1 billion of net inflows into high-net-worth separate accounts in the fourth quarter of fiscal 2011 compare to substantially flat net flows in the third quarter of fiscal 2011. The $0.2 billion of net outflows from retail managed accounts in the fourth quarter of fiscal 2011 compare to substantially flat net flows in the third quarter of fiscal 2011. Tables 1-4 on pages 9 and 10 summarize the Company’s assets under management and asset flows by investment mandate.

Revenue in the fourth quarter of fiscal 2011 decreased $32.7 million, or 10 percent, to $294.6 million from $327.3 million in the third quarter of fiscal 2011. Investment advisory and administration fees decreased 9 percent to $239.8 million, reflecting primarily a 6 percent decrease in average assets under management. Distribution and underwriter fees decreased 13 percent and service fee revenue decreased 11 percent due to a decrease in average fund assets that pay these fees. Other revenue, which decreased $2.9 million from the prior quarter, included $2.7 million of net investment losses related to consolidated funds recognized in the fourth quarter of fiscal 2011 compared to $0.2 million of net investment income in the third quarter of fiscal 2011.

Operating expenses decreased $18.9 million, or 9 percent, to $192.7 million in the fourth quarter of fiscal 2011 from $211.6 million in the third quarter of fiscal 2011. Compensation decreased 14 percent from the third quarter of fiscal 2011, reflecting decreases in bonus accruals, sales-based incentives, stock-based compensation, employee benefits and payroll taxes. Distribution expense decreased 3 percent from the prior fiscal quarter due to decreases in Class C distribution fees and commissions paid on certain sales of Class A shares. Service fee expense decreased 6 percent due to a decrease in assets subject to service fees. Amortization expense decreased 14 percent from the prior fiscal quarter due to a decrease in Class C amortization. Fund expenses decreased 6 percent from the third quarter of fiscal 2011 due to a decrease in subadvisory fees. Other expenses decreased 1 percent from the third quarter primarily due to decreases in professional services.

_______________________________
(2) Adjusted net income attributable to Eaton Vance Corp. shareholders reflects the add back of adjustments 
in connection with changes in the estimated redemption value of non-controlling interests in our affiliates 
redeemable at other than fair value, closed-end structuring fees and other items management deems non- 
recurring or non-operating. See reconciliation provided in Attachment 2 on page 7 for more information on 
adjusting items. 

 

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Operating income in the fourth quarter of fiscal 2011 was $101.9 million, a decrease of 12 percent from operating income of $115.7 million in the third quarter of fiscal 2011. The Company’s operating margin declined to 34.6 percent in the fourth quarter of fiscal 2011 from 35.3 percent in the third quarter of fiscal 2011.

Interest income decreased 11 percent in the fourth quarter of fiscal 2011 compared to the third quarter of fiscal 2011 due to lower effective interest rates earned on cash balances. The $0.2 million of net investment losses recognized in the fourth quarter of fiscal 2011 compare to $6.3 million of net investment gains in the third quarter of fiscal 2011, which included a $1.9 million gain recognized upon the sale of the Company’s interest in nonconsolidated CLO entity. Also included in other income and expenses for the fourth quarter of fiscal 2011 and third quarter of fiscal 2011 were net losses of $11.4 million and $2.5 million, respectively, primarily attributable to a decrease in the fair market value of the bank loans held by a consolidated CLO entity. For both quarters, this loss was substantially offset by an increase in net loss attributable to non-controlling and other beneficial interests.

The Company’s effective tax rate, calculated as a percentage of income before income taxes and equity in net income (loss) of affiliates, was 45.5 percent and 38.7 percent in the fourth quarter of fiscal 2011 and third quarter of fiscal 2011, respectively. The increase in the Company’s effective tax rate was due primarily to higher reported CLO entity losses, which are not subject to current tax, in the fourth quarter of fiscal 2011 compared to the prior quarter.

Net income attributable to non-controlling and other beneficial interests decreased $2.1 million in the fourth quarter of fiscal 2011 from the prior quarter due primarily to an $8.9 million increase in non-controlling beneficial interest associated with the consolidated CLO entity and a $1.9 million decrease in non-controlling beneficial interest associated with the Company’s majority-owned subsidiaries and consolidated funds. Also included in the fourth quarter of fiscal 2011 net income attributable to non-controlling and other beneficial interests are non-controlling interest value adjustments of $8.5 million relating to our subsidiary Atlanta Capital Management that are attributable to its profit growth over the twelve months ended October 31, 2011.

Adjusted net income attributable to Eaton Vance Corp. shareholders was $55.7 million in the fourth quarter of fiscal 2011 compared to $68.3 million in the third quarter, a decrease of 18 percent.  GAAP net income attributable to Eaton Vance Corp. shareholders was $46.8 million in the fourth quarter of fiscal 2011 and $68.1 million in the third quarter of fiscal 2011. Fourth quarter fiscal 2011 adjusted net income attributable to Eaton Vance Corp. shareholders differed from GAAP net income attributable to Eaton Vance Corp. shareholders due to the increases in the estimated redemption value of non-controlling interests in our subsidiary Atlanta Capital Management described in the preceding paragraph.

Cash and cash equivalents totaled $510.9 million on October 31, 2011 compared to $307.9 million on October 31, 2010. There were no outstanding borrowings against the Company’s $200.0 million credit facility on October 31, 2011. During fiscal 2011, the Company used $198.6 million to repurchase and retire approximately 7.3 million shares of its Non-Voting Common Stock under its repurchase authorizations and paid $85.2 million of dividends to shareholders. Substantially all of the current 8.0 million share repurchase authorization remains unused.

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

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

Page 9 of 14

 

Attachment 1

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

  Three Months Ended Twelve Months Ended


        %  %             
        Change  Change             
        Q4 2011  Q4 2011             
  October 31,  July 31,  October 31,  to  to  October 31,  October 31,  %              
  2011  2011  2010  Q3 2011  Q4 2010  2011 2010 Change               

Revenue:                         
Investment advisory and                         
      administration fees $ 239,751  $ 262,067  $ 230,403  (9) %  4 $ 996,222  $ 867,683  15 %   
Distribution and underwriter fees  23,079  26,432  29,954  (13)  (23)  102,979  103,995  (1)   
Service fees  33,281  37,426  37,055  (11)  (10)  144,530  139,741  3   
Other revenue  (1,508)  1,378  6,182  NM  NM  16,300  10,242  59   

Total revenue  294,603  327,303  303,594  (10)  (3)  1,260,031  1,121,661  12   

Expenses:                         
Compensation of officers and employees  81,007  94,713  87,855  (14)  (8)  369,927  348,897  6   
Distribution expense  32,577  33,733  32,584  (3)  - 132,664  126,064  5   
Service fee expense  30,186  32,222  30,265  (6)  - 124,517  116,900  7   
Amortization of deferred sales commissions  7,277  8,503  10,011  (14)  (27)  35,773  35,533  1   
Fund expenses  7,635  8,099  4,792  (6)  59   25,295  20,455  24   
Other expenses  33,993  34,359  32,003  (1)  6   134,198  120,530  11   

Total expenses  192,675  211,629  197,510  (9)  (2)  822,374  768,379  7   

Operating Income  101,928  115,674  106,084  (12)  (4)  437,657  353,282  24   
 
Other Income/(Expense):                         
Interest income  643  719  659  (11)  (2)  2,907  2,864  2   
Interest expense  (8,413)  (8,414)  (8,426)  -  -   (33,652)  (33,666)  -   
Net gains and (losses) on investments and                         
derivatives  (172)  6,322  (1,105)  NM  (84)  5,102  4,300  19   
Foreign currency gains (losses)  251  306  (131)  (18)  NM    (26)    181  NM   
Other income/(expense) of consolidated                         
collateralized loan obligation entity:                         
Interest income  5,272  5,268  -  -  NM  21,116    -  NM   
Interest expense  (4,029)  (3,999)  -  1  NM  (13,575)    -  NM   
Net losses on investments and note                         
          obligations  (12,614)  (3,814)  -  231  NM  (38,153)    -  NM   

 
Income Before Income Taxes and Equity                         
in Net Income (Loss) of Affiliates  82,866  112,062  97,081  (26)  (15)  381,376  326,961  17   
Income Taxes  (37,665)  (43,320)  (36,849)  (13)  2   (156,844)  (126,263)  24   
Equity in Net Income (Loss) of Affiliates,                         
Net of Tax  387  194  (16)  99  NM  3,042    527  477   

Net Income  45,588  68,936  60,216  (34)  (24)  227,574  201,225  13   
Net (Income) Loss Attributable to                         
Non-Controlling and Other Beneficial Interests  1,232  (868)  (9,910)  NM  NM  (12,672)  (26,927)  (53)   

Net Income Attributable to                         
Eaton Vance Corp. Shareholders  $ 46,820  $ 68,068  $ 50,306  (31)  (7)  $ 214,902  $ 174,298  23   

Earnings Per Share Attributable to                         
Eaton Vance Corp. Shareholders:                         
Basic  $ 0.41  $ 0.58  $ 0.43  (29)  (5)  $ 1.82  $ 1.47  24   

Diluted  $ 0.40  $ 0.55  $ 0.41  (27)  (2)  $ 1.75  $ 1.40  25   

 
Weighted Average Shares Outstanding:                         
Basic  112,939  115,574  116,217  (2)  (3)  115,326  116,444  (1)   

Diluted  115,238  120,543  121,601  (4)  (5)  119,975  122,632  (2)   

 
Dividends Declared Per Share  $ 0.19  $ 0.18  $ 0.18  6  6   $ 0.73  $ 0.66  11   

 

Page 10 of 14

 

Attachment 2

Eaton Vance Corp.
Reconciliation of net income attributable to Eaton Vance Corp. shareholders and earnings per diluted share
to adjusted net income attributable to Eaton Vance Corp. shareholders and adjusted earnings per diluted share

  Three Months Ended  Twelve Months Ended 

  October 31,  July 31,  October 31,  October 31,  October 31, 
     (in thousands, except per share figures)  2011  2011  2010  2011  2010 

Net income attributable to Eaton Vance           
Corp. shareholders  $ 46,820  $ 68,068  $ 50,306  $ 214,902  $ 174,298 
Non-controlling interest value adjustments  8,906  238  7,753  30,216  18,385 
Closed-end fund structuring fees  -  -  -  -  1,552 

Adjusted net income attributable to Eaton           
    Vance Corp. shareholders  $ 55,726  $ 68,306  $ 58,059  $ 245,118  $ 194,235 

Earnings per diluted share  $ 0.40  $ 0.55  $ 0.41  $ 1.75  $ 1.40 
Non-controlling interest value adjustments  0.07  -  0.06  0.25  0.15 
Closed-end fund structuring fees  -  -  -  -  0.01 

Adjusted earnings per diluted share  $ 0.47  $ 0.55  $ 0.47  $ 2.00  $ 1.56 

 

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Attachment 3

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

  October 31,  October 31, 
  2011  2010 
ASSETS 
 
Cash and cash equivalents  $ 510,913  $ 307,886 
Investment advisory fees and other receivables  130,525  129,380 
Investments  287,735  334,409 
Assets of consolidated collateralized loan obligation entity:     
Cash and cash equivalents  16,521  - 
Bank loans and other investments  462,586  - 
Other assets  2,715  - 
Deferred sales commissions  27,884  48,104 
Deferred income taxes  41,343  97,274 
Equipment and leasehold improvements, net  67,227  71,219 
Other intangible assets, net  67,224  73,018 
Goodwill  142,302  135,786 
Other assets  74,325  61,464 

Total assets  $ 1,831,300  $ 1,258,540 

 
LIABILITIES, TEMPORARY EQUITY AND PERMANENT EQUITY     
Liabilities:     
Accrued compensation  $ 137,431  $ 119,957 
Accounts payable and accrued expenses  51,333  60,843 
Dividend payable  21,959  21,319 
Contingent purchase price liability  -  5,079 
Debt  500,000  500,000 
Liabilities of consolidated collateralized loan obligation entity:     
Senior and subordinated note obligations  477,699  - 
Other liabilities  5,193  - 
Other liabilities  75,557  73,468 

Total liabilities  1,269,172  780,666 
Commitments and contingencies 
 
Temporary Equity:     
Redeemable non-controlling interests  100,824  67,019 

Total temporary equity  100,824  67,019 

Permanent Equity:     
Voting common stock, par value $0.00390625 per share:     
Authorized, 1,280,000 shares     
Issued, 399,240 and 399,240 shares, respectively  2  2 
Non-voting common stock, par value $0.00390625 per share:     
Authorized, 190,720,000 shares     
Issued, 115,223,827 and 117,927,054 shares, respectively  450  461 
Additional paid-in capital  20,391  50,225 
Notes receivable from stock option exercises  (4,441)  (3,158) 
Accumulated other comprehensive income (loss)  1,340  (435) 
Appropriated retained earnings  (3,867)  - 
Retained earnings  446,540  363,190 

  Total Eaton Vance Corp. shareholders' equity  460,415  410,285 
Non-redeemable non-controlling interests  889  570 

  Total permanent equity  461,304  410,855 

Total liabilities, temporary equity and permanent equity  $ 1,831,300  $ 1,258,540 

 

Page 12 of 14

 

Attachment 4

Eaton Vance Corp.
Table 1
Asset Flows (in millions)
Twelve Months Ended October 31, 2011
(unaudited)

Assets as of October 31, 2010 - beginning of period  $ 185,243 
Long-term fund sales and inflows  33,035 
Long-term fund redemptions and outflows  (32,486) 
Long-term fund net exchanges  (175) 
Institutional account inflows  12,350 
Institutional account outflows  (9,832) 
High-net-worth account inflows  2,848 
High-net-worth account outflows  (2,419) 
High-net-worth assets acquired  352 
Retail managed account inflows  6,657 
Retail managed account outflows  (6,262) 
Separate account reclassification  4 
Market value change  (641) 
Change in cash management funds  (470) 

Net change  2,961 

Assets as of October 31, 2011 - end of period  $ 188,204 

 

Eaton Vance Corp.
Table 2
Assets Under Management
By Investment Mandate (1)
(in millions) (unaudited)

  October 31,   July 31,  %  October 31,  % 
  2011   2011  Change  2010  Change 

Equity  $ 108,859   $ 117,055  -7%  $ 107,500  1% 
Fixed income    43,741  43,842  0%  46,127  -5% 
Floating-rate income    24,322  25,586  -5%  20,003  22% 
Alternative    10,612  11,732  -10%  10,474  1% 
Cash management    670  815  -18%  1,139  -41% 

Total  $ 188,204   $ 199,030  -5%  $ 185,243  2% 
 
(1) Includes funds and separate accounts           

 

Eaton Vance Corp.
Table 3
Long-Term Fund and Separate Account Net Flows (in millions)
(unaudited)

  Three Months Ended Twelve Months Ended 

  October 31,  July 31,  October 31,  October 31,  October 31, 
  2011  2011  2010  2011  2010 
Long-term funds: 
Open-end funds  $ (3,494)  $ 91  $ 3,207  $ 1,425  $ 12,804 
Closed-end funds  108  121  389  117  691 
Private funds  286  (144)  (228)  (993)  (2,053) 
Institutional accounts  501  1,814  726  2,518  4,059 
High-net-worth accounts  104  (23)  156  429  674 
Retail managed accounts  (238)  (4)  (1,089)  395  171 

Total net flows  $ (2,733)  $ 1,855  $ 3,161  $ 3,891  $ 16,346 

 

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Attachment 5

Eaton Vance Corp.
Table 4
Asset Flows by Investment Mandate (in millions) (unaudited)

    Three Months Ended    Twelve Months Ended 

  October 31,  July 31,  October 31,  October 31,  October 31, 
  2011  2011  2010  2011  2010 

Equity fund assets - beginning of period  $ 59,644  $ 64,325  $ 55,808  $ 58,434  $ 53,829 
Sales/inflows  2,300  2,653  3,615  12,935  12,993 
Redemptions/outflows  (3,911)  (3,992)  (4,327)  (16,065)  (13,599) 
Exchanges  (34)  (25)  (22)  32  377 
Market value change  (4,139)  (3,317)  3,360  (1,476)  4,834 

Net change  (5,784)  (4,681)  2,626  (4,574)  4,605 

Equity assets - end of period  $ 53,860  $ 59,644  $ 58,434  $ 53,860  $ 58,434 

Fixed income fund assets - beginning of period  27,580  26,976  28,080  29,421  26,076 
Sales/inflows  1,608  1,561  2,210  6,568  7,416 
Redemptions/outflows  (1,598)  (1,281)  (1,339)  (7,156)  (5,422) 
Exchanges  101  7  6  (177)  178 
Market value change  (186)  317  464  (1,151)  1,173 

Net change  (75)  604  1,341  (1,916)  3,345 

Fixed income assets - end of period  $ 27,505  $ 27,580  $ 29,421  $ 27,505  $ 29,421 

Floating-rate income fund assets - beginning of           
period  21,494  20,223  14,687  16,128  14,361 
Sales/inflows  1,359  2,025  1,536  8,317  4,481 
Redemptions/outflows  (2,098)  (911)  (477)  (4,504)  (2,421) 
Exchanges  (129)  2  3  52  (733) 
Market value change  (470)  155  379  163  440 

Net change  (1,338)  1,271  1,441  4,028  1,767 

Floating-rate income assets - end of period  $ 20,156  $ 21,494  $ 16,128  $ 20,156  $ 16,128 

Alternative fund assets - beginning of period  11,258  11,362  7,701  9,995  1,938 
Sales/inflows  928  1,054  2,813  5,215  9,233 
Redemptions/outflows  (1,687)  (1,041)  (662)  (4,761)  (1,239) 
Exchanges  (8)  (21)  14  (82)  104 
Market value change  (307)  (96)  129  (183)  (41) 

Net change  (1,074)  (104)  2,294  189  8,057 

Alternative assets - end of period  $ 10,184  $ 11,258  $ 9,995  $ 10,184  $ 9,995 

Long-term fund assets - beginning of period  119,976  122,886  106,276  113,978  96,204 
Sales/inflows  6,195  7,293  10,174  33,035  34,123 
Redemptions/outflows  (9,294)  (7,225)  (6,805)  (32,486)  (22,681) 
Exchanges  (70)  (37)  1  (175)  (74) 
Market value change  (5,102)  (2,941)  4,332  (2,647)  6,406 

Net change  (8,271)  (2,910)  7,702  (2,273)  17,774 

Total long-term fund assets - end of period  $ 111,705  $ 119,976  $ 113,978  $ 111,705  $ 113,978 

Separate accounts - beginning of period  78,239  79,004  65,876  70,126  57,278 
Institutional account inflows  2,954  4,336  1,765  12,350  9,285 
Institutional account outflows  (2,453)  (2,522)  (1,039)  (9,832)  (5,226) 
High-net-worth account inflows  598  529  510  2,848  2,715 
High-net-worth account outflows  (494)  (552)  (354)  (2,419)  (2,041) 
High-net-worth assets acquired  -  -  -  352  - 
Retail managed account inflows  1,318  1,505  1,599  6,657  6,683 
Retail managed account outflows  (1,556)  (1,509)  (2,688)  (6,262)  (6,512) 
Exchanges and reclassifications  -  -  -  4  - 
Market value change  (2,776)  (2,552)  4,457  2,006  7,944 

Net change  (2,409)  (765)  4,250  5,704  12,850 

Separate accounts - end of period  $ 75,830  $ 78,239  $ 70,126  $ 75,830  $ 70,126 

Cash management fund assets - end of           
period  669  815  1,139  669  1,139 

Total assets under management -           
end of period  $ 188,204  $ 199,030  $ 185,243  $ 188,204  $ 185,243 

 

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