Eaton Vance

Last updated
Eaton Vance Corporation
Type Subsidiary
NYSE: EV (Non-voting)
Industry Investment management
Founded Boston, Massachusetts (1924)
Headquarters Two International Place
Boston, Massachusetts
Key people
Thomas E. Faust Jr., CEO & President.

Laurie G. Hylton, CFO & Vice President.

Daniel C. Cataldo, CAO & Vice President.
Products Mutual funds,
tax-managed funds,
closed-end funds,
variable trust funds,
managed accounts,
wealth management
RevenueIncrease2.svgUS$1.68 billion (2019) [1]
AUM Increase2.svgUS$474.4 billion (2019) [2]
Number of employees
1,871 [3]
Parent Morgan Stanley
Website www.eatonvance.com

Eaton Vance Corp. is an American investment management firm based in Boston, Massachusetts. It is one of the oldest investment companies in the United States, with a history dating back to 1924. Through five primary investment affiliates, Eaton Vance provides investment products to individuals, institutions and financial professionals in the US, including wealth management, defined contribution investment only and sub-advisory services. [3] In 2005 it opened an office in London. [4] In March 2021, Morgan Stanley completed its acquisition of Eaton Vance, a deal announced in October 2020. With the addition of Eaton Vance, Morgan Stanley now had $5.4 trillion of client assets across its Wealth Management and Investment Management segments. [5]

Contents

History

The history of Eaton Vance dates from 1924, when Charles F. Eaton Jr., formed Eaton & Howard Inc., a Boston-based investment firm. In 1931, he became the president and director of the company. During its course of existence, the company formed several funds, including the Growth Fund in 1962; it invested primarily in common stocks of companies that enjoyed aggressive growth. In 1979, the firm was bought by Vance Sanders & Company and became Eaton & Howard, Vance Sanders Inc. Two years later, on February 20, 1981, Eaton Vance Corporation was established as a holding company. [6]

By the end of 1983, Eaton Vance was managing 23 mutual funds and numerous individual and company accounts, with over $2.3 billion in their accounts. The company's major products were 34 low-risk and tax-free funds by late 1989. The next year, Eaton Vance started promoting its funds via banks, which resulted in a sales profit of $450 million. As of 1993, over 60 banks in the United States were offering the company's funds. By the end of the year, the firm had management assets worth $12 billion. [6]

After restructuring its funds to a "hub-and-spoke" model, in 1995, Eaton Vance started offering new specialty funds through banks. The new funds were set to invest in companies working in entertainment, telecommunications, and PC industries. Despite the restructuring not showing up to be fruitful, by 1997, the company was managing $14.7 billion in assets, most of them coming from overseas including Greater China, Greater India, and some emerging markets. [6]

In 2001, Eaton Vance acquired Atlanta Capital Management and Fox Asset Management. The company increased its assets under management by 17%, to $54.6 billion. [7] In 2007, Thomas E. Faust Jr became the CEO and Chairman of the company, replacing James B. Hawkes. By September 2007, the firm owned $158.1 billion in assets under management. [8] In 2012, Easton Vance purchased 49% of Hexavest Inc, a Canadian investment management firm. [9]

In 2017, Eaton Vance purchased Calvert Investments, which provides mutual funds focused on socially responsible investing. [10]

On October 8, 2020, Morgan Stanley announced they were purchasing Eaton Vance for $7 billion. [11] The deal was completed on March 1, 2021. [12]

Business model and management

The company focuses on investment management but not wealth management, in that it focuses on investment funds rather than financial planning or brokerage services. [13] Therefore, it does not control distribution and financial advisors or retail investors must choose their funds. [13] It is focused on active management rather than passive. [14]

As of 2020, Tom Faust is the Chairman and CEO of the company, a position he took in 2007. [14]

Affiliates

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References

  1. ↑ "Eaton Vance Corp. Report for the Three Months and Fiscal Year Ended October 31, 2019". PR Newswire. November 26, 2019. Retrieved May 28, 2020.
  2. ↑ "Eaton Vance Corp. Reports June 30, 2019 Assets under Management". PR Newswire. June 12, 2019. Retrieved May 28, 2020.
  3. 1 2 "Eaton Vance Corp - Company Profile and News". Bloomberg News . Retrieved May 30, 2020.
  4. ↑ "Eaton Vance Opens Up Shop in London". GlobalCapital. 23 September 2005. Retrieved 2019-10-21.
  5. ↑ "Morgan Stanley Closes Acquisition of Eaton Vance".
  6. 1 2 3 "History of Eaton Vance Corporation". Funding Universe. Retrieved May 28, 2020.
  7. ↑ "In Brief: Eaton Vance Buys Atlanta Capital, Fox". American Banker . October 15, 2001. Retrieved May 29, 2020.
  8. ↑ "Eaton Vance appoints chairman, CEO". Investment News. November 2, 2007. Retrieved May 29, 2020.
  9. ↑ "Eaton Vance to buy 49% stake in Hexavest". MarketWatch. June 18, 2012. Retrieved May 29, 2020.
  10. ↑ "Eaton Vance Closes Assets Acquisition of Calvert Investment" . Retrieved 24 February 2017.
  11. ↑ Hoffman, Liz (2020-10-08). "Morgan Stanley to Buy Eaton Vance for $7 Billion". Wall Street Journal. ISSN   0099-9660 . Retrieved 2020-10-08.
  12. ↑ "Morgan Stanley Closes Acquisition of Eaton Vance".
  13. 1 2 "Eaton Vance Corp. (EV) CEO Tom Faust on Q1 2020 Results - Earnings Call Transcript". Seeking Alpha. 26 February 2020.
  14. 1 2 Kapadia, Reshma. "The CEO of Eaton Vance on How Active Managers Can Survive". www.barrons.com. Retrieved 2020-03-23.
  15. ↑ "Eaton Vance Management". Bloomberg News. Retrieved May 30, 2020.
  16. ↑ "Eaton Vance Announces Strategic Initiative to Strengthen Leadership Positions in Rules-Based, Systematic Investing, Customized Individual Separate Accounts and Wealth Management Solutions". PR Newswire. June 26, 2019. Retrieved May 30, 2020.
  17. ↑ "Eaton Vance Atlanta Capita SMID-Cap Fd (EAASX)". U.S. News & World Report . Retrieved May 30, 2020.
  18. ↑ Daly, Rob (November 27, 2017). "Eaton Vance Eyes Raising Hexavest Stake". Markets Media. Retrieved May 30, 2020.
  19. ↑ "Eaton Vance to buy Calvert Investments". Investment News. November 1, 2016. Retrieved May 30, 2020.
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