EATON VANCE CORP - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - EATON VANCE CORP. 8-K DTD 11-25-2014 - EATON VANCE CORP	evc8k_8k.htm

News Release

Contacts: Laurie G. Hylton 617.672.8527

Daniel C. Cataldo 617.672.8952

Eaton Vance Corp.

Report for the Three Months and Fiscal Year Ended October 31, 2014

Boston, MA, November 25, 2014 – Eaton Vance Corp. (NYSE: EV) today reported adjusted earnings per diluted share⁽¹⁾ of $0.68 for the fourth quarter of fiscal 2014, an increase of 24 percent over the $0.55 of adjusted earnings per diluted share in the fourth quarter of fiscal 2013 and an increase of 8 percent over the $0.63 of adjusted earnings per diluted share in the third quarter of fiscal 2014. Adjusted earnings per diluted share were $2.48 for the fiscal year ended October 31, 2014 compared to $2.08 for the fiscal year ended October 31, 2013, an increase of 19 percent.

As determined under U.S. generally accepted accounting principles (“GAAP”), the Company earned $0.66 in the fourth quarter of fiscal 2014, $0.45 in the fourth quarter of fiscal 2013 and $0.63 in the third quarter of fiscal 2014. Adjusted earnings per diluted share differed from GAAP earnings per diluted share in the fourth quarter of fiscal 2014 and 2013 due to increases in the estimated redemption value of non-controlling interest in affiliates redeemable at other than fair value, which reduced GAAP earnings by $0.02 and $0.10 in the fourth quarter of fiscal 2014 and 2013, respectively.

The Company’s GAAP earnings per diluted share were $2.44 and $1.53, respectively, for the fiscal years ended October 31, 2014 and 2013.

Net income and gains (losses) on seed capital investments contributed $0.01 in the fourth and third quarters of fiscal 2014 and were negligible in the fourth quarter of fiscal 2013.

Net inflows of $6.8 billion into long-term funds and separate accounts in the fourth quarter of fiscal 2014 represent a 9 percent annualized internal growth rate (net inflows into long-term assets divided by beginning of period long-term assets managed). For comparison, the Company had net inflows of $3.9 billion in the fourth quarter of fiscal 2013 and net outflows of $2.0 billion in the third quarter of fiscal 2014. Net inflows of $2.8 billion for fiscal year 2014 compare to $24.7 billion of net inflows in fiscal 2013.

“A strong fourth quarter enabled Eaton Vance to close fiscal 2014 with record earnings and our 19^th consecutive year of positive net flows,” said Thomas E. Faust Jr., Chairman and Chief Executive Officer. “We enter fiscal 2015 with favorable investment performance trends, improving net flows and the prospect of leading the evolution of actively managed funds to a better-performing and more tax-efficient structure with the potential launch of the initial NextShares™. It promises to be an exciting year.”

_____________________

⁽¹⁾ Although the Company reports its financial results in accordance with GAAP, management believes that certain non-GAAP financial measures, while not a substitute for GAAP financial measures, may be effective indicators of the Company’s performance over time. Adjusted net income and adjusted earnings per diluted share reflect 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 fund structuring fees and other items management deems non-recurring or non-operating, such as special dividends, costs associated with retiring debt and tax settlements. See reconciliation provided in Attachment 2 for more information on adjusting items.

Consolidated assets under management were $297.7 billion on October 31, 2014, an increase of 6 percent from the $280.7 billion of managed assets on October 31, 2013 and an increase of 3 percent from the $288.2 billion of managed assets on July 31, 2014. The year over year increase in ending assets under management reflects market appreciation of $14.4 billion and net inflows of $2.8 billion. The sequential quarterly increase in ending assets under management reflects net inflows of $6.8 billion and market price appreciation of $2.8 billion.

Average consolidated assets under management were $293.8 billion in the fourth quarter of fiscal 2014, up 8 percent from $271.4 billion in the fourth quarter of fiscal 2013 and up 2 percent from $289.3 billion in the third quarter of fiscal 2014.

Attachments 5 and 6 summarize the Company’s consolidated assets under management and asset flows by investment mandate and investment vehicle. Attachment 7 summarizes the Company’s consolidated assets under management by investment affiliate.

As shown in Attachment 6, consolidated gross sales and other inflows were $28.3 billion in the fourth quarter of fiscal 2014, up 11 percent from $25.5 billion in the fourth quarter of fiscal 2013 and up 8 percent from $26.2 billion in the third quarter of fiscal 2014. Gross redemptions and other outflows were $21.5 billion in the fourth quarter of fiscal 2014, substantially unchanged from $21.6 billion in the fourth quarter of fiscal 2013 and down 24 percent from $28.2 billion in the third quarter of fiscal 2014.

As of October 31, 2014, 49 percent-owned affiliate Hexavest, Inc. (“Hexavest”) managed $16.7 billion of client assets, a decrease of 1 percent from the $16.9 billion of managed assets on October 31, 2013 and a decrease of 2 percent from the $17.0 billion of managed assets on July 31, 2014. Hexavest-managed funds and separate accounts had net outflows of $0.3 billion in the fourth quarter of fiscal 2014, net inflows of $0.2 billion in the fourth quarter of fiscal 2013 and net outflows of $0.3 billion in the third quarter of fiscal 2014. Attachment 9 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

		Three Months Ended
		(in thousands, except per share figures)

		October 31,		July 31,		October 31,
		2014		2014		2013

Revenue		$	368,382	$	367,590	$	356,933
Expenses			229,206		236,412		231,526
Operating income			139,176		131,178		125,407

Operating margin			37.8%		35.7%		35.1%

Non-operating expense			(10,519)		(4,850)		(14,252)
Income taxes			(47,920)		(48,899)		(44,626)
Equity in net income of affiliates, net of tax			4,381		3,840		5,600
Net income			85,118		81,269		72,129
Net income attributable to non-controlling
	and other beneficial interests		(4,996)		(3,334)		(14,977)
Net income attributable to
	Eaton Vance Corp. shareholders	$	80,122	$	77,935	$	57,152
Adjusted net income attributable to Eaton
	Vance Corp. shareholders⁽¹⁾	$	83,103	$	77,876	$	69,953

Earnings per diluted share		$	0.66	$	0.63	$	0.45

Adjusted earnings per diluted share⁽¹⁾		$	0.68	$	0.63	$	0.55

Fourth Quarter Fiscal 2014 vs. Fourth Quarter Fiscal 2013

In the fourth quarter of fiscal 2014, revenue increased 3 percent to $368.4 million from revenue of $356.9 million in the fourth quarter of fiscal 2013. Investment advisory and administrative fees were up 4 percent, reflecting an 8 percent increase in average consolidated assets under management and lower average effective fee rates. Performance fees contributed $6.3 million and $3.4 million to investment advisory and administrative fees in the fourth quarter of fiscal 2014 and 2013, respectively. Distribution and service fee revenues were collectively down 4 percent, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.

Operating expenses decreased 1 percent to $229.2 million in the fourth quarter of fiscal 2014 from $231.5 million in the fourth quarter of fiscal 2013, reflecting decreases in compensation, fund-related expenses and reduced amortization of deferred sales commissions, offset by increases in distribution and service fee expenses and other operating expenses. The decrease in compensation expense reflects decreases in stock-based compensation, lower operating income-based bonus accruals and a decrease in sales-based incentives, offset by increases in salaries and benefits due to higher employee headcount and annual merit increases. The decrease in fund-related expenses primarily reflects a decrease in fund subsidies and expenses borne by the Company on funds for which it earns an all-in fee. The decrease in amortization of deferred sales commissions largely reflects decreases in Class B share and Class C share amortization. The increase in distribution and service fee expenses reflects an increase in average assets under management subject to service fee payments. Other expenses increased 3 percent, reflecting increases in travel, information technology and other corporate expenses, offset by a decrease in professional service expenses.

Operating income was up 11 percent to $139.2 million in the fourth quarter of fiscal 2014 from $125.4 million in the fourth quarter of fiscal 2013. Operating margin improved to 37.8 percent in the fourth quarter of fiscal 2014 from 35.1 percent in the fourth quarter of fiscal 2013.

Non-operating expense totaled $10.5 million in the fourth quarter of fiscal 2014 compared to $14.3 million in the fourth quarter of fiscal 2013. The year-over-year change primarily reflects a $3.3 million positive change in gains (losses) and other investment income related to the Company’s investments in sponsored products.

The Company’s effective tax rate, calculated as a percentage of income before income taxes and equity in net income of affiliates, was 37.2 percent in the fourth quarter of fiscal 2014. Excluding the impact of consolidated CLO entities’ income (expense) borne by other beneficial interest holders, the Company’s effective tax rate was 36.6 percent for the quarter.

Equity in net income of affiliates decreased to $4.4 million in the fourth quarter of fiscal 2014 from $5.6 million in the fourth quarter of fiscal 2013. Equity in net income of affiliates in the fourth quarter of fiscal 2014 included $2.7 million of Company equity in the net income of Hexavest, $1.5 million of gains (losses) and other income on the Company’s investments in sponsored funds and $0.2 million of net income in a private equity partnership. Equity in net income of affiliates in the fourth quarter of fiscal 2013 included $3.0 million of Company equity in the net income of Hexavest and $2.6 million of gains (losses) and other income on the Company’s investments in sponsored funds.

Net income attributable to non-controlling and other beneficial interests was $5.0 million in the fourth quarter of fiscal 2014 compared to $15.0 million in the fourth quarter of fiscal 2013. As shown in Attachment 3, net income attributable to non-controlling and other beneficial interests included non-controlling interest value adjustments relating to our majority-owned subsidiaries of $3.0 million and $12.6 million in the fourth quarter of fiscal 2014 and 2013, respectively. The year-over-year change also reflects a decrease in the net income (loss) attributable to non-controlling interest holders of the Company’s consolidated CLO entities.

Fourth Quarter Fiscal 2014 vs. Third Quarter Fiscal 2014

In the fourth quarter of fiscal 2014, revenue of $368.4 million was substantially unchanged from revenue of $367.6 million in the third quarter of fiscal 2014. Investment advisory and administrative fees were up 1 percent, reflecting a 2 percent increase in average consolidated assets under management and a modest decrease in average effective fee rates. Performance fees contributed $6.3 million and $0.9 million to investment advisory and administrative fees in the fourth and third quarters of fiscal 2014, respectively. Distribution and service fee revenues collectively decreased 3 percent, reflecting lower managed assets in fund share classes that are subject to distribution and service fees.

Operating expenses decreased 3 percent to $229.2 million in the fourth quarter of fiscal 2014 from $236.4 million in the third quarter of fiscal 2014, reflecting decreases in compensation, service fee expenses and fund-related expenses offset by increases in other operating expenses and increased amortization of deferred sales commissions. The decrease in compensation expense reflects a decrease in stock-based compensation and lower operating income-based bonus accruals. The lower service fee expense reflects decreased average assets under management subject to service fees. The decrease in fund-related expenses is attributable to lower fund subsidies. Other expenses increased 2 percent, reflecting an increase in travel expenses, facilities-related expenses and professional services offset by a decrease in information technology expenses.

Operating income was up 6 percent to $139.2 million in the fourth quarter of fiscal 2014 from $131.2 million in the third quarter of fiscal 2014. Operating margin improved to 37.8 percent in the fourth quarter of fiscal 2014 from 35.7 percent in the third quarter of fiscal 2014.

Non-operating expense totaled $10.5 million in the fourth quarter of fiscal 2014 compared to $4.9 million in the third quarter of fiscal 2014, reflecting a $4.4 million decline in gains (losses) and other investment income related to the Company’s investments in sponsored products and a $1.1 million decline in income (expense) of the Company’s consolidated CLO entity.

Equity in net income of affiliates increased to $4.4 million in the fourth quarter of fiscal 2014 from $3.8 million in the third quarter of fiscal 2014. In the fourth quarter of fiscal 2014 equity in net income of affiliates included $2.7 million of Company equity in the net income of Hexavest, $1.5 million of gains (losses) and other income on the Company’s investments in sponsored and $0.2 million of net income in a private equity partnership. In the third quarter of fiscal 2014 equity in net income of affiliates included $2.9 million of Company equity in the net income of Hexavest and $0.9 million of gains (losses) and other income on the Company’s investments in sponsored funds.

As shown in Attachment 3, net income attributable to non-controlling and other beneficial interests was $5.0 million in the fourth quarter of fiscal 2014 and $3.3 million in the third quarter of fiscal 2014.

Weighted average diluted shares outstanding decreased 1.6 million shares, or 1 percent, in the fourth quarter of fiscal 2014 from the third quarter of fiscal 2014, primarily reflecting the impact of share repurchases. During the fourth quarter of fiscal 2014 the Company issued 2.1 million shares of Non-Voting Common Stock in connection with the exercise of employee stock options. Over the same period, the Company used $94.1 million to repurchase and retire 2.5 million shares of its Non-Voting Common Stock.

Balance Sheet Information

Cash and cash equivalents totaled $385.2 million on October 31, 2014, with no outstanding borrowings against the Company’s new five-year $300 million credit facility. During the fourth quarter, the Company replaced its previous three-year $300 million credit facility with the new facility, which expires in 2019. Included within investments is $157.0 million of short-term debt securities with maturities between 90 days and one year. During fiscal 2014, the Company used $322.0 million to repurchase and retire 8.5 million shares of its Non-Voting Common Stock under

its repurchase authorizations. Of the current 8.0 million share repurchase authorization, approximately 4.7 million shares remain available.

Conference Call Information

Eaton Vance Corp. will host a conference call and webcast at 11:00 AM eastern time today to discuss the financial results for the three months and fiscal year ended October 31, 2014. To participate in the conference call, please call 877-201-0168 (domestic) or 647-788-4901 (international) and refer to “Eaton Vance Corp. Fourth Fiscal Quarter Earnings.” Listeners to the conference call must enter the confirmation code 28180711. A webcast of the conference call can also be accessed via Eaton Vance’s website, www.eatonvance.com.

A replay of the call will be available for one week by calling 855-859-2056 (domestic) or 404-537-3406 (international) or by accessing Eaton Vance’s website, www.eatonvance.com. Listeners to the telephone replay must enter the confirmation code 28180711.

About Eaton Vance Corp.

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, 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 www.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.


															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 2014		Q4 2014
			October 31,		July 31,		October 31,		vs.		vs.		October 31,		October 31,		%
			2014		2014		2013		Q3 2014		Q4 2013		2014		2013		Change
Revenue:

	Investment advisory and administrative fees		$	314,583	$	311,756	$	301,536	1	%	4	%	$	1,231,188	$	1,135,327	8	%
	Distribution and underwriter fees			21,133		21,548		21,637	(2)		(2)			85,514		89,234	(4)
	Service fees			30,616		31,977		32,039	(4)		(4)			125,713		126,560	(1)
	Other revenue			2,050		2,309		1,721	(11)		19			7,879		6,382	23
		Total revenue		368,382		367,590		356,933	-		3			1,450,294		1,357,503	7
Expenses:

	Compensation and related costs			110,328		117,632		112,914	(6)		(2)			461,438		447,134	3
	Distribution expense			35,620		35,591		34,973	-		2			141,544		139,618	1
	Service fee expense			29,354		29,780		28,661	(1)		2			116,620		115,149	1
	Amortization of deferred sales commissions			4,182		4,084		5,063	2		(17)			17,590		19,581	(10)
	Fund-related expenses			9,127		9,380		10,502	(3)		(13)			35,415		34,230	3
	Other expenses			40,595		39,945		39,413	2		3			157,830		148,784	6
		Total expenses		229,206		236,412		231,526	(3)		(1)			930,437		904,496	3
Operating income				139,176		131,178		125,407	6		11			519,857		453,007	15
Non-operating income (expense):
	Gains (losses) and other investment
		income, net		(1,453)		2,917		(4,736)	NM		(69)			1,139		(2,513)	NM
	Interest expense			(7,645)		(7,443)		(7,399)	3		3			(29,892)		(33,708)	(11)
	Loss on extinguishment of debt			-		-		(110)	-		NM			-		(52,996)	NM
	Other income (expense) of consolidated
		collateralized loan obligation ("CLO") entities:
		Gains (losses) and other investment
		income, net		(355)		1,434		6,934	NM		NM			14,892		14,815	1
		Interest and other expense		(1,066)		(1,758)		(8,941)	(39)		(88)			(14,847)		(19,152)	(22)
		Total non-operating expense		(10,519)		(4,850)		(14,252)	117		(26)			(28,708)		(93,554)	(69)

Income before income taxes and equity
in net income of affiliates				128,657		126,328		111,155	2		16			491,149		359,453	37
Income taxes				(47,920)		(48,899)		(44,626)	(2)		7			(186,710)		(143,896)	30
Equity in net income of affiliates, net of tax				4,381		3,840		5,600	14		(22)			16,725		14,869	12
Net income				85,118		81,269		72,129	5		18			321,164		230,426	39
Net income attributable to non-controlling
and other beneficial interests				(4,996)		(3,334)		(14,977)	50		(67)			(16,848)		(36,585)	(54)
Net income attributable to
Eaton Vance Corp. Shareholders			$	80,122	$	77,935	$	57,152	3		40		$	304,316	$	193,841	57

Earnings per share:
	Basic		$	0.68	$	0.66	$	0.47	3		45		$	2.55	$	1.60	59
	Diluted		$	0.66	$	0.63	$	0.45	5		47		$	2.44	$	1.53	59

Weighted average shares outstanding:
	Basic			114,656		116,145		117,419	(1)		(2)			116,440		116,597	-
	Diluted			119,391		121,013		123,431	(1)		(3)			121,595		122,444	(1)

Dividends declared per share:
	Regular		$	0.25	$	0.22	$	0.22	14		14		$	0.91	$	0.82	11
	Special		$	-	$	-	$	-	-		-		$	-	$	1.00	NM



												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


		Three Months Ended										Fiscal Year Ended
								% Change		% Change
		October 31,		July 31,		October 31,		Q4 2014 vs.		Q4 2014 vs.		October 31,		October 31,		%
(in thousands, except per share figures)		2014		2014		2013		Q3 2014		Q4 2013		2014		2013		Change

Net income attributable to Eaton
	Vance Corp. shareholders	$	80,122	$	77,935	$	57,152	3	%	40	%	$	304,316	$	193,841	57	%

Non-controlling interest value
	adjustments		2,981		(59)		12,602	NM		(76)			5,311		24,320	(78)

Closed-end fund structuring fees,
	net of tax		-		-		131	-		NM			-		2,851	NM

Loss on extinguishment of debt, net of tax*			-		-		68	-		NM			-		35,239	NM

Settlement of state tax audit			-		-		-	-		-			-		6,691	NM

Adjusted net income attributable to
	Eaton Vance Corp. shareholders	$	83,103	$	77,876	$	69,953	7		19		$	309,627	$	262,942	18

Earnings per diluted share		$	0.66	$	0.63	$	0.45	5		47		$	2.44	$	1.53	59

Non-controlling interest value
	adjustments		0.02		-		0.10	NM		(80)			0.04		0.19	(79)

Closed-end fund structuring fees,
	net of tax		-		-		-	-		-			-		0.02	NM

Loss on extinguishment of debt, net of tax*			-		-		-	-		-			-		0.28	NM

Settlement of state tax audit			-		-		-	-		-			-		0.05	NM

Special dividend adjustment			-		-		-	-		-			-		0.01	NM

Adjusted earnings per diluted share		$	0.68	$	0.63	$	0.55	8		24		$	2.48	$	2.08	19

	* The loss on extinguishment of debt is comprised of a $53.0 million loss on extinguishment of debt, a $3.1 million loss on a reverse treasury lock entered into in
	conjunction with the retirement of debt and $0.9 million of additional interest related to the accelerated amortization of a treasury lock tied to the retired portion of the debt.

														Attachment 3
Eaton Vance Corp.
Components of net income attributable
to non-controlling and other beneficial interests


		Three Months Ended										Fiscal Year Ended
								% Change		% Change
		October 31,		July 31,		October 31,		Q4 2014 vs.		Q4 2014 vs.		October 31,		October 31,		%
(in thousands)		2014		2014		2013		Q3 2014		Q4 2013		2014		2013		Change

Consolidated funds		$	(577)	$	42	$	209	NM	%	NM	%	$	(318)	$	4,095	NM	%

Majority-owned subsidiaries			4,681		4,261		5,024	10		(7)			15,949		16,620	(4)

Non-controlling interest value
	adjustments		2,981		(59)		12,602	NM		(76)			5,311		24,320	(78)

Consolidated CLO entities			(2,089)		(910)		(2,858)	130		(27)			(4,094)		(8,450)	(52)

Net income attributable to non-controlling
	and other beneficial interests	$	4,996	$	3,334	$	14,977	50		(67)		$	16,848	$	36,585	(54)


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


		October 31,		October 31,
		2014		2013
Assets


Cash and cash equivalents	$	385,215	$	461,906
Investment advisory fees and other receivables		186,344		170,220
Investments		624,605		536,323
Assets of consolidated CLO entities:
Cash and cash equivalents		8,963		36,641
Bank loans and other investments		147,116		685,681
Other assets		371		5,814
Deferred sales commissions		17,841		17,923
Deferred income taxes		46,099		61,139
Equipment and leasehold improvements, net		45,651		48,746
Intangible assets, net		65,126		74,534
Goodwill		228,876		228,876
Other assets		103,879		79,446
Total assets	$	1,860,086	$	2,407,249

Liabilities, Temporary Equity and Permanent Equity

Liabilities:

Accrued compensation	$	181,064	$	169,953
Accounts payable and accrued expenses		64,598		58,529
Dividend payable		30,057		26,740
Debt		573,655		573,499
Liabilities of consolidated CLO entities:
Senior and subordinated note obligations		151,982		279,127
Line of credit		-		247,789
Redeemable preferred shares		-		64,952
Other liabilities		298		124,305
Other liabilities		93,485		115,960
Total liabilities		1,095,139		1,660,854
Commitments and contingencies

Temporary Equity:
Redeemable non-controlling interests		107,466		74,856
Total temporary equity		107,466		74,856

Permanent Equity:
Voting Common Stock, par value $0.00390625 per share:
Authorized, 1,280,000 shares
Issued and outstanding, 415,078 and 399,240 shares, respectively		2		2
Non-Voting Common Stock, par value $0.00390625 per share:
Authorized, 190,720,000 shares
Issued and outstanding, 117,846,273 and 121,232,506 shares, respectively		460		474
Additional paid-in capital		-		124,837
Notes receivable from stock option exercises		(8,818)		(7,122)
Accumulated other comprehensive loss		(17,996)		(177)
Appropriated retained earnings		2,467		10,249
Retained earnings		679,061		541,521
Total Eaton Vance Corp. shareholders' equity		655,176		669,784
Non-redeemable non-controlling interests		2,305		1,755
Total permanent equity		657,481		671,539
Total liabilities, temporary equity and permanent equity	$	1,860,086	$	2,407,249


										Attachment 5
Eaton Vance Corp.
Consolidated Net Flows by Investment Mandate⁽¹⁾
(in millions)

		Three Months Ended						Fiscal Year Ended
		October 31,		July 31,		October 31,		October 31,			October 31,
		2014		2014		2013		2014			2013
Equity assets - beginning of period⁽²⁾		$	96,054	$	93,733	$	90,774	$	93,585		$	80,782
	Sales and other inflows		3,767		3,465		3,167		14,687			16,989
	Redemptions/outflows		(4,418)		(4,129)		(5,324)		(19,183)			(19,459)
	Net flows		(651)		(664)		(2,157)		(4,496)			(2,470)
	Assets acquired⁽³⁾		-		-		-		-			1,572
	Exchanges		20		468		166		1,019			328
	Market value change		1,529		2,517		4,802		6,844			13,373
Equity assets - end of period		$	96,952	$	96,054	$	93,585	$	96,952		$	93,585
Fixed income assets - beginning of period⁽⁴⁾			44,287		43,917		45,821		44,211			49,003
	Sales and other inflows		3,604		3,344		2,149		12,024			10,881
	Redemptions/outflows		(2,532)		(3,299)		(3,697)		(11,867)			(14,015)
	Net flows		1,072		45		(1,548)		157			(3,134)
	Assets acquired⁽³⁾		-		-		-		-			472
	Exchanges		74		59		(151)		96			(510)
	Market value change		454		266		89		1,423			(1,620)
Fixed income assets - end of period		$	45,887	$	44,287	$	44,211	$	45,887		$	44,211
Floating-rate income assets - beginning of period			43,752		45,115		38,170		41,821			26,388
	Sales and other inflows		2,575		4,139		5,742		15,669			21,729
	Redemptions/outflows		(3,705)		(5,491)		(2,207)		(14,742)			(6,871)
	Net flows		(1,130)		(1,352)		3,535		927			14,858
	Exchanges		(89)		(62)		145		(145)			397
	Market value change		(524)		51		(29)		(594)			178
Floating-rate income assets - end of period		$	42,009	$	43,752	$	41,821	$	42,009		$	41,821
Alternative assets - beginning of period			11,691		12,112		16,098		15,212			12,864
	Sales and other inflows		709		774		1,271		3,339			8,195
	Redemptions/outflows		(1,073)		(1,208)		(1,903)		(7,237)			(5,688)
	Net flows		(364)		(434)		(632)		(3,898)			2,507
	Assets acquired⁽³⁾		-		-		-		-			650
	Exchanges		(6)		(15)		(47)		(89)			(184)
	Market value change		(80)		28		(207)		16			(625)
Alternative assets - end of period		$	11,241	$	11,691	$	15,212	$	11,241		$	15,212
Implementation services assets - beginning of period			92,223		90,815		77,673		85,637			30,302
	Sales and other inflows		17,632		14,429		13,177		61,031			39,841
	Redemptions/outflows		(9,801)		(14,053)		(8,490)		(50,969)			(26,887)
	Net flows		7,831		376		4,687		10,062			12,954
	Assets acquired⁽³⁾		-		-		-		-			32,064
	Exchanges		-		(456)		(104)		(913)			(118)
	Market value change		1,417		1,488		3,381		6,685			10,435
Implementation services assets - end of period		$	101,471	$	92,223	$	85,637	$	101,471		$	85,637
Total long-term fund and separate account
	assets - beginning of period		288,007		285,692		268,536		280,466			199,339
	Sales and other inflows		28,287		26,151		25,506		106,750			97,635
	Redemptions/outflows		(21,529)		(28,180)		(21,621)		(103,998)			(72,920)
	Net flows		6,758		(2,029)		3,885		2,752			24,715
	Assets acquired⁽³⁾		-		-		-		-			34,758
	Exchanges		(1)		(6)		9		(32)			(87)
	Market value change		2,796		4,350		8,036		14,374			21,741
Total long-term fund and separate account
	assets - end of period	$	297,560	$	288,007	$	280,466	$	297,560		$	280,466
Cash management fund assets - end of period			175		187		203		175			203
Total assets under management - end of period		$	297,735	$	288,194	$	280,669	$	297,735		$	280,669

⁽¹⁾ Consolidated Eaton Vance Corp. See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest Inc.
⁽²⁾ Includes assets in balanced accounts holding income securities.
⁽³⁾ Represents assets gained in the acquisition of The Clifton Group Investment Management Company on December 31, 2012.
⁽⁴⁾ Includes assets in institutional cash management separate accounts.


									Attachment 6
Eaton Vance Corp.
Consolidated Net Flows by Investment Vehicle⁽¹⁾
(in millions)

		Three Months Ended						Fiscal Year Ended
		October 31,		July 31,		October 31,		October 31,		October 31,
		2014		2014		2013		2014		2013
Long-term fund assets - beginning of period		$	134,969	$	134,942	$	129,042	$	133,198	$	113,249
	Sales and other inflows		7,857		8,634		10,299		35,408		43,606
	Redemptions/outflows		(8,795)		(10,272)		(8,653)		(38,077)		(29,970)
	Net flows		(938)		(1,638)		1,646		(2,669)		13,636
	Assets acquired⁽²⁾		-		-		-		-		638
	Exchanges		(73)		(6)		(17)		(32)		(279)
	Market value change		431		1,671		2,527		3,892		5,954
Long-term fund assets - end of period		$	134,389	$	134,969	$	133,198	$	134,389	$	133,198
Institutional separate account assets -
	beginning of period⁽³⁾		98,393		96,564		89,473		95,724		43,338
	Sales and other inflows		17,318		14,717		12,742		59,938		41,108
	Redemptions/outflows		(10,325)		(14,912)		(9,756)		(54,957)		(31,548)
	Net flows		6,993		(195)		2,986		4,981		9,560
	Assets acquired⁽²⁾		-		-		-		-		34,120
	Exchanges		(65)		377		26		216		183
	Market value change		1,122		1,647		3,239		5,522		8,523
Institutional separate account assets -
	end of period	$	106,443	$	98,393	$	95,724	$	106,443	$	95,724
High-net-worth separate account assets -
	beginning of period		20,851		20,968		19,071		19,699		15,036
	Sales and other inflows		1,056		794		832		3,532		4,763
	Redemptions/outflows		(575)		(953)		(1,313)		(3,620)		(3,699)
	Net flows		481		(159)		(481)		(88)		1,064
	Exchanges		317		(433)		(1)		286		(16)
	Market value change		586		475		1,110		2,338		3,615
High-net-worth separate account assets -
	end of period	$	22,235	$	20,851	$	19,699	$	22,235	$	19,699
Retail managed account assets -
	beginning of period		33,794		33,218		30,950		31,845		27,716
	Sales and other inflows		2,056		2,006		1,633		7,872		8,158
	Redemptions/outflows		(1,834)		(2,043)		(1,899)		(7,344)		(7,703)
	Net flows		222		(37)		(266)		528		455
	Exchanges		(180)		56		1		(502)		25
	Market value change		657		557		1,160		2,622		3,649
Retail managed account assets -
	end of period	$	34,493	$	33,794	$	31,845	$	34,493	$	31,845
Total long-term fund and separate account
	assets - beginning of period		288,007		285,692		268,536		280,466		199,339
	Sales and other inflows		28,287		26,151		25,506		106,750		97,635
	Redemptions/outflows		(21,529)		(28,180)		(21,621)		(103,998)		(72,920)
	Net flows		6,758		(2,029)		3,885		2,752		24,715
	Assets acquired⁽²⁾		-		-		-		-		34,758
	Exchanges		(1)		(6)		9		(32)		(87)
	Market value change		2,796		4,350		8,036		14,374		21,741
Total long-term fund and separate account
	assets - end of period	$	297,560	$	288,007	$	280,466	$	297,560	$	280,466
Cash management fund assets -
	end of period		175		187		203		175		203
Total assets under management -
	end of period	$	297,735	$	288,194	$	280,669	$	297,735	$	280,669

⁽¹⁾ Consolidated Eaton Vance Corp. See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest Inc.
⁽²⁾ Represents assets gained in the acquisition of The Clifton Group Investment Management Company on December 31, 2012.
⁽³⁾ Includes assets in institutional cash management separate accounts.


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

		October 31,		July 31,	%		October 31,	%
		2014		2014	Change		2013	Change
Eaton Vance Management⁽²⁾	$	143,100	$	143,373	0%	$	144,729	-1%
Parametric		136,176		126,741	7%		117,008	16%
Atlanta Capital		18,459		18,080	2%		18,932	-2%
Total	$	297,735	$	288,194	3%	$	280,669	6%

⁽¹⁾ Consolidated Eaton Vance Corp. See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest.
⁽²⁾ Includes managed assets of wholly owned subsidiaries Eaton Vance Investment Counsel and Fox Asset Management
LLC, as well as certain Eaton Vance-sponsored funds and accounts managed by Hexavest and unaffiliated third-party
advisors under Eaton Vance supervision.

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

		October 31,		July 31,	%		October 31,	%
		2014		2014	Change		2013	Change
Equity⁽²⁾	$	96,952	$	96,054	1%	$	93,585	4%
Fixed income⁽³⁾		45,887		44,287	4%		44,211	4%
Floating-rate income		42,009		43,752	-4%		41,821	0%
Alternative		11,241		11,691	-4%		15,212	-26%
Implementation services		101,471		92,223	10%		85,637	18%
Cash management funds		175		187	-6%		203	-14%
Total	$	297,735	$	288,194	3%	$	280,669	6%

⁽¹⁾ Consolidated Eaton Vance Corp. See Attachment 9 for managed assets and flows of 49 percent-owned Hexavest.
⁽²⁾ Includes assets in balanced accounts holding income securities.
⁽³⁾ Includes assets in institutional cash management separate accounts.


Attachment 9
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,
		2014		2014		2013		2014		2013
Eaton Vance distributed:
Eaton Vance sponsored funds - beginning of period⁽¹⁾		$	221	$	221	$	173	$	211	$	37
	Sales and other inflows		9		6		30		58		162
	Redemptions/outflows		(4)		(10)		(3)		(57)		(15)
	Net flows		5		(4)		27		1		147
	Market value change		1		4		11		15		27
Eaton Vance sponsored funds - end of period		$	227	$	221	$	211	$	227	$	211
Eaton Vance distributed separate accounts -
	beginning of period⁽²⁾	$	2,397	$	2,354	$	1,515	$	1,574	$	-
	Sales and other inflows		12		136		4		531		1,381
	Redemptions/outflows		(59)		(122)		(32)		(260)		(33)
	Net flows		(47)		14		(28)		271		1,348
	Exchanges		-		-		-		389		-
	Market value change		17		29		87		133		226
Eaton Vance distributed separate accounts -
	end of period	$	2,367	$	2,397	$	1,574	$	2,367	$	1,574
Total Eaton Vance distributed - beginning of period		$	2,618	$	2,575	$	1,688	$	1,785	$	37
	Sales and other inflows		21		142		34		589		1,543
	Redemptions/outflows		(63)		(132)		(35)		(317)		(48)
	Net flows		(42)		10		(1)		272		1,495
	Exchanges		-		-		-		389		-
	Market value change		18		33		98		148		253
Total Eaton Vance distributed - end of period		$	2,594	$	2,618	$	1,785	$	2,594	$	1,785
Hexavest directly distributed - beginning of period⁽³⁾		$	14,423	$	14,477	$	14,046	$	15,136	$	12,073
	Sales and other inflows		245		597		699		1,637		2,703
	Redemptions/outflows		(501)		(904)		(488)		(3,046)		(1,853)
	Net flows		(256)		(307)		211		(1,409)		850
	Exchanges		-		-		-		(389)		-
	Market value change		(66)		253		879		763		2,213
Hexavest directly distributed - end of period		$	14,101	$	14,423	$	15,136	$	14,101	$	15,136
Total Hexavest assets - beginning of period		$	17,041	$	17,052	$	15,734	$	16,921	$	12,110
	Sales and other inflows		266		739		733		2,226		4,246
	Redemptions/outflows		(564)		(1,036)		(523)		(3,363)		(1,901)
	Net flows		(298)		(297)		210		(1,137)		2,345
	Exchanges		-		-		-		-		-
	Market value change		(48)		286		977		911		2,466
Total Hexavest assets - end of period		$	16,695	$	17,041	$	16,921	$	16,695	$	16,921

⁽¹⁾	Managed assets and flows of Eaton Vance-sponsored pooled investment vehicles for which Hexavest is adviser or sub-adviser. Eaton
	Vance receives management and/or distribution revenue on these assets, which are included in the Eaton Vance consolidated results
	in Attachments 5, 6, 7 and 8.
⁽²⁾	Managed assets and flows of Eaton Vance-distributed separate accounts managed by Hexavest. Eaton Vance receives distribution revenue, but
	not investment advisory fees, on these assets, which are not included in the Eaton Vance consolidated results in Attachments 5, 6, 7 and 8.
⁽³⁾	Managed assets and flows of pre-transaction Hexavest clients and post-transaction Hexavest clients in Canada. Eaton Vance receives no
	investment advisory or distribution revenue on these assets, which are not included in the Eaton Vance consolidated results in Attachments 5, 6, 7
	and 8.

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