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

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

The Company reported adjusted earnings per diluted share(1) of $2.48 for the fiscal year ended October 31, 2017, an increase of 16 percent from $2.13 of adjusted earnings per diluted share for the fiscal year ended October 31, 2016. For the fiscal year ended October 31, 2017, adjusted earnings differed from earnings under U.S. generally accepted accounting principles (GAAP) by $0.06 per diluted share to reflect $5.4 million of costs associated with the May 2017 retirement of $250 million aggregate principal amount of the Company's 6.5 percent senior notes due October 2, 2017 (2017 Senior Notes), $3.5 million of structuring fees paid in connection with the $210 million initial public offering of Eaton Vance Floating-Rate 2022 Target Term Trust (2022 Target Term Trust) in July 2017 and $0.5 million to reflect increases in the estimated redemption value of non-controlling interests in affiliates redeemable at other than fair value. For the fiscal year ended October 31, 2016, adjusted earnings differed from GAAP earnings by $0.01 per diluted share to reflect $2.3 million of structuring fees paid in connection with the $215 million initial public offering of Eaton Vance High Income 2021 Target Term Trust (2021 Target Term Trust) in May 2016. Attachment 2 shows a reconciliation of GAAP earnings to adjusted earnings.

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

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

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

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

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

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

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

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

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

Attachments 5 and 6 summarize the Company's assets under management and net flows by investment mandate and investment vehicle. Attachments 7, 8 and 9 summarize the Company's ending consolidated assets under management by investment mandate, investment vehicle and investment affiliate. Attachment 10 shows the Company's average annualized effective management fee rates by investment mandate.

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

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

As of October 31, 2017, the Company's 49 percent-owned affiliate Hexavest, Inc. (Hexavest) managed $16.0 billion of client assets, up 17 percent from $13.7 billion of managed assets on October 31, 2016 and up 4 percent from $15.4 billion of managed assets on July 31, 2017. Hexavest had net inflows of $0.1 billion for the fiscal year ended October 31, 2017 versus net outflows of $1.1 billion for the fiscal year ended October 31, 2016. Hexavest had net inflows of $0.3 billion in the fourth quarter of fiscal 2017 versus net outflows of $0.1 billion in the fourth quarter of fiscal 2016 and net inflows of $0.4 billion in the third quarter of fiscal 2017. Attachment 11 summarizes assets under management and asset flow information for Hexavest. Other than Eaton Vance-sponsored funds for which Hexavest is adviser or sub-adviser, the managed assets and flows of Hexavest are not included in Eaton Vance consolidated totals.

Financial Highlights










(in thousands, except per share figures)























Three Months Ended


Fiscal Year Ended


October 31,

July 31,

October 31,


October 31,

October 31,


2017

2017

2016


2017

2016

Revenue

$

405,673

$

393,746

$

346,846


$

1,529,010

$

1,342,860

Expenses


267,302


272,715


235,696



1,046,252


928,592

Operating income


138,371


121,031


111,150



482,758


414,268

Operating margin


34.1%


30.7%


32.0%



31.6%


30.8%

Non-operating expense


(1,920)


(6,039)


(6,505)



(13,589)


(6,216)

Income taxes


(49,802)


(42,462)


(40,837)



(173,666)


(153,630)

Equity in net income of












affiliates, net of tax


2,897


2,323


2,488



10,870


10,335

Net income


89,546


74,853


66,296



306,373


264,757

Net income attributable to












non-controlling and other












beneficial interests


(7,462)


(7,492)


(1,241)



(24,242)


(23,450)

Net income attributable to












Eaton Vance Corp. shareholders

$

82,084

$

67,361

$

65,055


$

282,131

$

241,307

Adjusted net income attributable to












Eaton Vance Corp. shareholders

$

82,726

$

72,849

$

65,132


$

288,187

$

242,908

Earnings per diluted share

$

0.69

$

0.58

$

0.57


$

2.42

$

2.12

Adjusted earnings per diluted share

$

0.70

$

0.62

$

0.57


$

2.48

$

2.13


Full Year Fiscal 2017 vs. Full Year Fiscal 2016

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

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

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

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

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

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

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

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

Fourth Quarter Fiscal 2017 vs. Fourth Quarter Fiscal 2016

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

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

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

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

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

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

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

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

Fourth Quarter Fiscal 2017 vs. Third Quarter Fiscal 2017

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

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

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

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

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

The Company's effective tax rate, calculated as a percentage of income before income taxes and equity in net income of affiliates, was 36.5 percent in the fourth quarter of fiscal 2017 and 36.9 percent in the third quarter of fiscal 2017.

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

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

Balance Sheet Information

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

Conference Call Information

Eaton Vance Corp. will host a conference call and webcast at 11:00 AM eastern time today to discuss the financial results for the three months and fiscal year ended October 31, 2017. To participate in the conference call, please dial 866-521-4909 (domestic) or 647-427-2311 (international) and refer to "Eaton Vance Corp. Fourth Fiscal Quarter Earnings." A webcast of the conference call can also be accessed via Eaton Vance's website, eatonvance.com.

A replay of the call will be available for one week by calling 800-585-8367 (domestic) or 416-621-4642 (international) or by accessing Eaton Vance's website, eatonvance.com. To listen to the replay, enter the conference ID number 4999047 when instructed.

About Eaton Vance Corp.

Eaton Vance is a leading global asset manager whose history dates to 1924. With offices in North America, Europe, Asia and Australia, Eaton Vance and its affiliates offer individuals and institutions a broad array of investment strategies and wealth management solutions. The Company's long record of providing exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors. For more information about Eaton Vance, visit eatonvance.com.

Forward-Looking Statements

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


(1)Although the Company reports its financial results in accordance with GAAP, management believes that certain non-GAAP financial measures, specifically, adjusted net income attributable to Eaton Vance Corp. shareholders and adjusted earnings per diluted share, while not a substitute for GAAP financial measures, may be effective indicators of the Company's performance over time. In calculating these non-GAAP financial measures, net income attributable to Eaton Vance Corp. shareholders and earnings per diluted share are adjusted to exclude items management deems non-operating or non-recurring in nature or otherwise outside the ordinary course of business. These adjustments may include the add back of adjustments made in connection with changes in the estimated redemption value of non-controlling interests in our affiliates redeemable at other than fair value (non-controlling interest value adjustments), and, when applicable, other items such as closed-end fund structuring fees, special dividends, costs associated with retiring debt and tax settlements. Management and our Board of Directors, as well as our outside investors, consider these adjusted numbers a measure of the Company's underlying operating performance. Management believes adjusted net income attributable to Eaton Vance Corp. shareholders and adjusted earnings per diluted share are important indicators of our operations because they exclude items that may not be indicative of, or are unrelated to, our core operating results, and may provide a better baseline for analyzing trends in our underlying business.




















Attachment 1

Eaton Vance Corp.

Summary of Results of Operations

(in thousands, except per share figures)
























Three Months Ended


Fiscal Year Ended










%

%

















Change

Change

















Q4 2017

Q4 2017











October 31,

July 31,

October 31,

vs.

vs.


October 31,

October 31,

%




2017

2017

2016

Q3 2017

Q4 2016


2017

2016

Change

Revenue:



















Management fees

$

351,993

$

339,866

$

298,459

4

%

18

%


$

1,318,141

$

1,151,198

15

%


Distribution and underwriter fees


19,785


20,114


18,606

(2)


6




78,776


74,822

5



Service fees


30,469


30,515


27,481

-


11




119,962


107,684

11



Other revenue


3,426


3,251


2,300

5


49




12,131


9,156

32




Total revenue


405,673


393,746


346,846

3


17




1,529,010


1,342,860

14


Expenses:



















Compensation and related costs


141,012


142,338


125,259

(1)


13




553,952


491,115

13



Distribution expense


32,589


37,160


29,658

(12)


10




132,873


117,996

13



Service fee expense


29,135


28,630


25,458

2


14




112,519


98,494

14



Amortization of deferred sales commissions

4,177


4,182


3,589

-


16




16,239


15,451

5



Fund-related expenses


12,243


14,029


9,766

(13)


25




48,995


35,899

36



Other expenses


48,146


46,376


41,966

4


15




181,674


169,637

7




Total expenses


267,302


272,715


235,696

(2)


13




1,046,252


928,592

13


Operating income


138,371


121,031


111,150

14


24




482,758


414,268

17


Non-operating income (expense):



















Gains and other investment income, net


3,984


5,537


2,645

(28)


51




19,303


12,411

56



Interest expense


(5,904)


(6,180)


(7,386)

(4)


(20)




(27,496)


(29,410)

(7)



Loss on extinguishment of debt


-


(5,396)


-

(100)


NM




(5,396)


-

NM



Other income (expense) of consolidated



















collateralized loan obligation (CLO) entity:



















Gains and other investment income, net

-


-


2,415

NM


(100)




-


24,069

(100)




Interest expense


-


-


(4,179)

NM


(100)




-


(13,286)

(100)




Total non-operating expense


(1,920)


(6,039)


(6,505)

(68)


(70)




(13,589)


(6,216)

119






















Income before income taxes and equity


















in net income of affiliates

136,451


114,992


104,645

19


30




469,169


408,052

15


Income taxes


(49,802)


(42,462)


(40,837)

17


22




(173,666)


(153,630)

13


Equity in net income of affiliates, net of tax


2,897


2,323


2,488

25


16




10,870


10,335

5


Net income


89,546


74,853


66,296

20


35




306,373


264,757

16


Net income attributable to non-controlling

















and other beneficial interests


(7,462)


(7,492)


(1,241)

-


501




(24,242)


(23,450)

3


Net income attributable to


















Eaton Vance Corp. shareholders

$

82,084

$

67,361

$

65,055

22


26



$

282,131

$

241,307

17






















Earnings per share:


















Basic

$

0.73

$

0.61

$

0.59

20


24



$

2.54

$

2.20

15



Diluted

$

0.69

$

0.58

$

0.57

19


21



$

2.42

$

2.12

14






















Weighted average shares outstanding:

















Basic


112,499


111,284


109,341

1


3




110,918


109,914

1



Diluted


118,823


117,051


114,074

2


4




116,418


113,982

2






















Dividends declared per share

$

0.310

$

0.280

$

0.280

11


11



$

1.150

$

1.075

7

















Attachment 2

Eaton Vance Corp.

Reconciliation of net income attributable to Eaton Vance Corp.

shareholders to adjusted net income attributable to Eaton Vance Corp.

shareholders and earnings per diluted share to adjusted earnings per diluted share

(in thousands, except per share figures)
























Three Months Ended


Fiscal Year Ended










%

%


















Change

Change


















Q4 2017

Q4 2017










October 31,

July 31,

October 31,


vs.

vs.


October 31,

October 31,


%


2017

2017

2016


Q3 2017

Q4 2016


2017

2016


Change






















Net income attributable to Eaton





















Vance Corp. shareholders

$

82,084

$

67,361

$

65,055


22

%

26

%


$

282,131

$

241,307


17

%






















Non-controlling interest value adjustments


602


3


77


NM


682




531


200


166























Closed-end fund structuring fees, net of tax


40(1)


2,139(1)


-


(98)


NM




2,179(1)


1,401(2)


56























Loss on extinguishment of debt, net of tax


-


3,346(3)


-


(100)


NM




3,346(3)


-


NM























Adjusted net income attributable





















to Eaton Vance Corp. shareholders

$

82,726

$

72,849

$

65,132


14


27



$

288,187

$

242,908


19























Earnings per diluted share

$

0.69

$

0.58

$

0.57


19


21



$

2.42

$

2.12


14























Non-controlling interest value adjustments


0.01


-


-


NM


NM




0.01


-


NM























Closed-end fund structuring fees, net of tax


-


0.01


-


(100)


NM




0.02


0.01


100























Loss on extinguishment of debt, net of tax


-


0.03


-


(100)


NM




0.03


-


NM












































Adjusted earnings per diluted share

$

0.70

$

0.62

$

0.57


13


23



$

2.48

$

2.13


16












































Eaton Vance Corp.

Reconciliation of operating income and operating margin

to adjusted operating income and adjusted operating margin

(in thousands)
























Three Months Ended


Fiscal Year Ended










%

%


















Change

Change


















Q4 2017

Q4 2017










October 31,

July 31,

October 31,


vs.

vs.


October 31,

October 31,


%


2017

2017

2016


Q3 2017

Q4 2016


2017

2016


Change






















Operating income

$

138,371

$

121,031

$

111,150


14

%

24

%


$

482,758

$

414,268


17

%





















Closed-end fund structuring fees


65(1)


3,450(1)


-


(98)


NM




3,515(1)


2,291(2)


53











































Adjusted operating income

$

138,436

$

124,481

$

111,150


11


25



$

486,273

$

416,559


17






















Operating margin


34.1

%

30.7

%

32.0

%

11


7




31.6

%

30.8

%

3






















Closed-end fund structuring fees


-


0.9


-


(100)


NM




0.2


0.2


-












































Adjusted operating margin


34.1

%

31.6

%

32.0

%

8


7




31.8

%

31.0

%

3























(1)

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























(2)

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























(3)

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
















Attachment 3

Eaton Vance Corp

Components of net income attributable

to non-controlling and other beneficial interests

(in thousands)






















Three Months Ended


Fiscal Year Ended









%

%
















Change

Change
















Q4 2017

Q4 2017










October 31,

July 31,

October 31,

vs

vs


October 31,

October 31,

%


2017

2017

2016

Q3 2017

Q4 2016


2017

2016

Change




















Consolidated sponsored funds

$

1,980

$

3,124

$

(370)

(37)

%

NM

%


$

6,816

$

(43)

NM

%



















Majority-owned subsidiaries


4,880


4,365


3,775

12


29




16,895


13,525

25





















Non-controlling interest value adjustments


602


3


77

NM


682




531


200

166




















Consolidated CLO entity


-


-


(2,241)

NM


(100)




-


9,768

(100)





















Net income attributable to non-controlling



















and other beneficial interests

$

7,462

$

7,492

$

1,241

-


501



$

24,242

$

23,450

3








Attachment 4


Eaton Vance Corp.


Balance Sheet


(in thousands, except per share figures)






October 31,



October 31,




2017



2016(1)


Assets














Cash and cash equivalents

$

610,555


$

424,174


Management fees and other receivables


200,453



186,172


Investments


898,192



589,773


Assets of consolidated CLO entity:







Bank loan investments


31,348



-


Deferred sales commissions


36,423



27,076


Deferred income taxes


67,100



73,295


Equipment and leasehold improvements, net


48,989



44,427


Intangible assets, net


89,812



46,809


Goodwill


259,681



248,091


Loan to affiliate


5,000



5,000


Other assets


83,348



85,565


Total assets

$

2,330,901


$

1,730,382









Liabilities, Temporary Equity and Permanent Equity














Liabilities:














Accrued compensation

$

207,330


$

173,485


Accounts payable and accrued expenses


68,115



59,927


Dividend payable


44,634



36,525


Debt


618,843



571,773


Liabilities of consolidated CLO entity:







Line of credit


12,598



-


Other liabilities


116,298



75,069


Total liabilities


1,067,818



916,779









Commitments and contingencies














Temporary Equity:







Redeemable non-controlling interests


250,823



109,028


Total temporary equity


250,823



109,028









Permanent Equity:







Voting Common Stock, par value $0.00390625 per share:







Authorized, 1,280,000 shares







Issued and outstanding, 442,932 and 442,932 shares, respectively


2



2


Non-Voting Common Stock, par value $0.00390625 per share:







Authorized, 190,720,000 shares







Issued and outstanding, 118,077,872 and 113,545,008 shares, respectively


461



444


Additional paid-in capital


148,284



-


Notes receivable from stock option exercises


(11,112)



(12,074)


Accumulated other comprehensive loss


(47,474)



(57,583)


Retained earnings


921,235



773,000


Total Eaton Vance Corp. shareholders' equity


1,011,396



703,789


Non-redeemable non-controlling interests


864



786


Total permanent equity


1,012,260



704,575


Total liabilities, temporary equity and permanent equity

$

2,330,901


$

1,730,382








(1)

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

















Attachment 5

Eaton Vance Corp.

Consolidated Assets under Management and Net Flows by Investment Mandate(1)(2)

(in millions)



















Three Months Ended


Fiscal Year Ended



October 31,


July 31,


October 31,


October 31,


October 31,



2017


2017


2016


2017


2016

Equity assets – beginning of period(3)(4)

$

110,198


$

104,666


$

91,826


$

89,981


$

89,890


Sales and other inflows


5,156



5,745



3,833



21,111



15,321


Redemptions/outflows


(5,511)



(4,259)



(3,795)



(19,828)



(15,668)


Net flows


(355)



1,486



38



1,283



(347)


Assets acquired(5)


-



-



-



5,704



-


Exchanges


2



7



(14)



62



(32)


Market value change


3,627



4,039



(1,869)



16,442



470

Equity assets end of period

$

113,472


$

110,198


$

89,981


$

113,472


$

89,981

Fixed income assets – beginning of period(4)(6)


68,708



66,881



59,371



60,607



52,465


Sales and other inflows


5,256



5,516



4,716



22,097



20,451


Redemptions/outflows


(3,131)



(4,178)



(3,042)



(16,137)



(13,033)


Net flows


2,125



1,338



1,674



5,960



7,418


Assets acquired(5)


-



-



-



4,170



-


Exchanges


8



(2)



(21)



(139)



23


Market value change


(44)



491



(417)



199



701

Fixed income assets end of period

$

70,797


$

68,708


$

60,607


$

70,797


$

60,607

Floating-rate income assets – beginning of period(4)


38,754



36,957



32,397



32,107



35,534


Sales and other inflows


2,348



3,567



1,835



15,222



7,232


Redemptions/outflows


(1,927)



(2,113)



(2,426)



(8,889)



(11,078)


Net flows


421



1,454



(591)



6,333



(3,846)


Exchanges


(10)



(8)



28



136



(16)


Market value change


(346)



351



273



243



435

Floating-rate income assets – end of period

$

38,819


$

38,754


$

32,107


$

38,819


$

32,107

Alternative assets – beginning of period(4)


11,877



11,212



9,961



10,687



10,289


Sales and other inflows


2,384



1,359



1,168



5,930



4,183


Redemptions/outflows


(1,716)



(666)



(513)



(4,067)



(3,590)


Net flows


668



693



655



1,863



593


Exchanges


3



-



(3)



(4)



(2)


Market value change


89



(28)



74



91



(193)

Alternative assets – end of period

$

12,637


$

11,877


$

10,687


$

12,637


$

10,687

Portfolio implementation assets – beginning of period


93,285



86,376



72,428



71,426



59,487


Sales and other inflows


5,199



5,869



3,079



23,359



19,882


Redemptions/outflows


(3,178)



(2,790)



(3,202)



(12,438)



(10,455)


Net flows


2,021



3,079



(123)



10,921



9,427


Exchanges


-



5



11



5



(3)


Market value change


4,309



3,825



(890)



17,263



2,515

Portfolio implementation assets end of period

$

99,615


$

93,285


$

71,426


$

99,615


$

71,426

Exposure management assets – beginning of period


82,763



80,921



68,407



71,572



63,689


Sales and other inflows


24,239



17,734



20,458



80,532



57,988


Redemptions/outflows


(21,161)



(16,649)



(17,268)



(69,058)



(51,929)


Net flows


3,078



1,085



3,190



11,474



6,059


Market value change


1,135



757



(25)



3,930



1,824

Exposure management assets – end of period(2)

$

86,976


$

82,763


$

71,572


$

86,976


$

71,572

Total assets under management – beginning of period


405,585



387,013



334,390



336,380



311,354


Sales and other inflows


44,582



39,790



35,089



168,251



125,057


Redemptions/outflows


(36,624)



(30,655)



(30,246)



(130,417)



(105,753)


Net flows


7,958



9,135



4,843



37,834



19,304


Assets acquired(5)


-



-



-



9,874



-


Exchanges


3



2



1



60



(30)


Market value change


8,770



9,435



(2,854)



38,168



5,752

Total assets under management end of period

$

422,316


$

405,585


$

336,380


$

422,316


$

336,380

















(1)

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


















(2)

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


















(3)

Includes balanced and multi-asset mandates.


















(4)

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


















(5)

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


















(6)

Includes cash management mandates.














Attachment 6

Eaton Vance Corp.

Consolidated Assets under Management and Net Flows by Investment Vehicle(1)(2)

(in millions)



















Three Months Ended


Fiscal Year Ended



October 31,


July 31,


October 31,


October 31,


October 31,



2017


2017


2016


2017


2016

Fund assets – beginning of period(3)

$

152,734


$

147,341


$

126,359


$

125,722


$

125,934


Sales and other inflows


10,303



9,736



7,083



40,967



29,890


Redemptions/outflows


(8,404)



(7,641)



(6,594)



(33,350)



(29,535)


Net flows


1,899



2,095



489



7,617



355


Assets acquired(4)


-



-



-



9,821



-


Exchanges(5)


10



2



(10)



2,196



(94)


Market value change


2,210



3,296



(1,116)



11,497



(473)

Fund assets end of period

$

156,853


$

152,734


$

125,722


$

156,853


$

125,722

Institutional separate account assets – beginning of period


154,253



149,044



134,580



136,451



119,987


Sales and other inflows


26,615



21,227



23,135



93,067



74,476


Redemptions/outflows


(24,112)



(19,109)



(20,873)



(81,096)



(62,945)


Net flows


2,503



2,118



2,262



11,971



11,531


Assets acquired(4)


-



-



-



40



-


Exchanges(5)


(8)



-



-



(2,063)



420


Market value change


3,238



3,091



(391)



13,587



4,513

Institutional separate account assets – end of period(2)

$

159,986


$

154,253


$

136,451


$

159,986


$

136,451

High-net-worth separate account assets – beginning of period


36,439



33,225



25,823



25,806



24,516


Sales and other inflows


3,138



3,103



1,249



12,965



5,832


Redemptions/outflows


(1,477)



(1,347)



(844)



(5,370)



(4,841)


Net flows


1,661



1,756



405



7,595



991


Exchanges


7



4



28



(24)



(309)


Market value change


1,608



1,454



(450)



6,338



608

High-net-worth separate account assets – end of period

$

39,715


$

36,439


$

25,806


$

39,715


$

25,806

Retail managed account assets – beginning of period


62,159



57,403



47,628



48,401



40,917


Sales and other inflows


4,526



5,724



3,622



21,252



14,859


Redemptions/outflows


(2,631)



(2,558)



(1,935)



(10,601)



(8,432)


Net flows


1,895



3,166



1,687



10,651



6,427


Assets acquired(4)


-



-



-



13



-


Exchanges


(6)



(4)



(17)



(49)



(47)


Market value change


1,714



1,594



(897)



6,746



1,104

Retail managed account assets – end of period

$

65,762


$

62,159


$

48,401


$

65,762


$

48,401

Total assets under management – beginning of period


405,585



387,013



334,390



336,380



311,354


Sales and other inflows


44,582



39,790



35,089



168,251



125,057


Redemptions/outflows


(36,624)



(30,655)



(30,246)



(130,417)



(105,753)


Net flows


7,958



9,135



4,843



37,834



19,304


Assets acquired(4)


-



-



-



9,874



-


Exchanges


3



2



1



60



(30)


Market value change


8,770



9,435



(2,854)



38,168



5,752

Total assets under management – end of period

$

422,316


$

405,585


$

336,380


$

422,316


$

336,380


















(1)

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


















(2)

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


















(3)

Includes assets in cash management funds.


















(4)

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


















(5)

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













Attachment 7

Eaton Vance Corp.

Consolidated Assets under Management by Investment Mandate(1)(2)

(in millions)


















October 31,



July 31,


%



October 31,


%




2017



2017


Change



2016


Change

Equity(3)(4)

$

113,472


$

110,198


3%


$

89,981


26%

Fixed income(4)(5)


70,797



68,708


3%



60,607


17%

Floating-rate income(4)


38,819



38,754


0%



32,107


21%

Alternative(4)


12,637



11,877


6%



10,687


18%

Portfolio implementation


99,615



93,285


7%



71,426


39%

Exposure management(2)


86,976



82,763


5%



71,572


22%

Total

$

422,316


$

405,585


4%


$

336,380


26%















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















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















(3) Includes balanced and multi-asset mandates.















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















(5) Includes cash management mandates.


























Attachment 8

Eaton Vance Corp.

Consolidated Assets under Management by Investment Vehicle(1)(2)

(in millions)


















October 31,



July 31,


%



October 31,


%




2017



2017


Change



2016


Change

Open-end funds(3)(4)

$

97,601


$

95,797


2%


$

74,721


31%

Closed-end funds(5)


24,816



24,648


1%



23,571


5%

Private funds(6)


34,436



32,289


7%



27,430


26%

Institutional separate account assets(2)(4)


159,986



154,253


4%



136,451


17%

High-net-worth separate account assets


39,715



36,439


9%



25,806


54%

Retail managed account assets


65,762



62,159


6%



48,401


36%

Total

$

422,316


$

405,585


4%


$

336,380


26%















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















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















(3) Includes assets in NextShares funds.















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















(5) Includes unit investment trusts.















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


























Attachment 9

Eaton Vance Corp.

Consolidated Assets under Management by Investment Affiliate(1)(2)

(in millions)


















October 31,



July 31,


%



October 31,


%




2017



2017


Change



2016


Change

Eaton Vance Management(3)(4)

$

164,257


$

160,570


2%


$

143,918


14%

Parametric(2)(4)


224,941



213,213


6%



173,981


29%

Atlanta Capital(4)(5)


22,379



21,476


4%



18,481


21%

Calvert Research and Management(5)


10,739



10,326


4%



-


NM

Total

$

422,316


$

405,585


4%


$

336,380


26%















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















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















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















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















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


Attachment 10

Eaton Vance Corp.

Average Annualized Management Fee Rates by Investment Mandate(1)(2)(3)

(in basis points on average managed assets)












Three Months Ended


Fiscal Year Ended





%

%









Change

Change









Q4 2017

Q4 2017






October 31,

July 31,

October 31,

vs.

vs.


October 31,

October 31,

%


2017

2017

2016

Q3 2017

Q4 2016


2017

2016

Change

Equity(4)

60.7

61.5

63.3

-1%

-4%


61.7

62.8

-2%

Fixed income(4)

37.1

37.7

39.2

-2%

-5%


38.0

40.0

-5%

Floating-rate income(4)

51.5

50.7

51.8

2%

-1%


51.6

51.8

0%

Alternative(4)

64.2

63.2

63.7

2%

1%


63.3

63.0

0%

Portfolio implementation

14.8

14.6

14.5

1%

2%


14.7

14.9

-1%

Exposure management(2)

5.3

5.1

4.9

4%

8%


5.2

5.1

2%

Consolidated average










annualized fee rates

33.9

34.2

35.0

-1%

-3%


34.5

35.8

-4%












(1)

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












(2)

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












(3)

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












(4)

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


Attachment 11

Eaton Vance Corp.

Hexavest Inc. Assets under Management and Net Flows

(in millions)

















Three Months Ended


Fiscal Year Ended


October 31,


July 31,


October 31,


October 31,


October 31,


2017


2017


2016


2017


2016

Eaton Vance distributed:















Eaton Vance sponsored funds – beginning of period(1)

$

151


$

262


$

231


$

231


$

229


Sales and other inflows


30



29



10



92



22


Redemptions/outflows


(3)



(147)



(1)



(177)



(33)


Net flows


27



(118)



9



(85)



(11)


Market value change


4



7



(9)



36



13

Eaton Vance sponsored funds end of period

$

182


$

151


$

231


$

182


$

231

Eaton Vance distributed separate accounts –















beginning of period(2)

$

2,655


$

2,138


$

2,658


$

2,492


$

2,440


Sales and other inflows


399



455



77



1,124



131


Redemptions/outflows


(17)



(23)



(142)



(920)



(236)


Net flows


382



432



(65)



204



(105)


Market value change


55



85



(101)



396



157

Eaton Vance distributed separate accounts – end of period

$

3,092


$

2,655


$

2,492


$

3,092


$

2,492

Total Eaton Vance distributed – beginning of period

$

2,806


$

2,400


$

2,889


$

2,723


$

2,669


Sales and other inflows


429



484



87



1,216



153


Redemptions/outflows


(20)



(170)



(143)



(1,097)



(269)


Net flows


409



314



(56)



119



(116)


Market value change


59



92



(110)



432



170

Total Eaton Vance distributed – end of period

$

3,274


$

2,806


$

2,723


$

3,274


$

2,723

Hexavest directly distributed – beginning of period(3)

$

12,638


$

12,065


$

11,522


$

11,021


$

11,279


Sales and other inflows


290



249



375



1,140



985


Redemptions/outflows


(393)



(210)



(413)



(1,208)



(1,919)


Net flows


(103)



39



(38)



(68)



(934)


Market value change


213



534



(463)



1,795



676

Hexavest directly distributed – end of period

$

12,748


$

12,638


$

11,021


$

12,748


$

11,021

Total Hexavest managed assets – beginning of period

$

15,444


$

14,465


$

14,411


$

13,744


$

13,948


Sales and other inflows


719



733



462



2,356



1,138


Redemptions/outflows


(413)



(380)



(556)



(2,305)



(2,188)


Net flows


306



353



(94)



51



(1,050)


Market value change


272



626



(573)



2,227



846

Total Hexavest managed assets – end of period

$

16,022


$

15,444


$

13,744


$

16,022


$

13,744


















(1)

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



















(2)

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



















(3)

Managed assets and flows of pre-transaction Hexavest clients and post-transaction Hexavest clients in Canada. Eaton Vance receives no management fees or distribution fees on these assets, which are not included in the Eaton Vance consolidated assets under management and flows in Attachments 5 through 9.


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SOURCE Eaton Vance Corp.