Eaton Vance CorporationNYSE
Tue, Nov. 22, 9:01 AM
Mon, Nov. 21, 5:30 PM
Fri, Oct. 21, 3:31 PM
- Eaton Vance (EV +1.4%) this morning announced an agreement to purchase the business assets of Calvert Investment Management.
- Reiterating a Neutral rating on EV, Citi's William Katz and Jack Keeler at first glance like the deal as Calvert could be fee accretive to Eaton Vance, and the sustainable investing space could be a profitable area for expansion.
- There are a couple of caveats though: 1) Calvert recently settled with the SEC over mispricing of bond mutual fund values, 2) Calvert late last year laid off about 30% of its staff, meaning Eaton Vance may need to spend to revitalize growth, 3) Calvert's recent U.S. fund flows have been "quite challenged," so key to the deal would be whatever contingencies are part of the agreement.
Fri, Oct. 21, 9:19 AM
- Eaton Vance (NYSE:EV) will acquire the business assets of Calvert Investment Management, an indirect subsidiary of Ameritas Holding Company.
- Calvert has ~$12.3B of fund and separate account assets under management as of September 30, 2016. As a responsible investor, Calvert seeks to invest in companies that provide positive leadership in their business operations and overall activities that are material to improving societal outcomes.
- Because the transaction is structured as an asset purchase, liabilities in connection with Calvert's previously disclosed compliance matters and other pre-closing obligations will remain with the seller. Terms of the transaction are not being disclosed.
- "The acquisition of Calvert provides significant potential benefits to Eaton Vance shareholders, both long-term and near-term," said Laurie G. Hylton, Vice President and Chief Financial Officer of Eaton Vance. "Calvert is a leading brand in one of the most promising categories of investing, and we expect to help them achieve substantial growth over time. Reflecting the current profitability of acquired operations and anticipated cost savings, we also expect the transaction to be immediately accretive."
- Source: Press Release
Mon, Oct. 17, 2:00 PM
- It's the kind of headline that makes one wonder if the bottom might already be in for traditional asset managers.
- The numbers won't surprise anyone who's been following along for any length of time: Over the three years ended Aug. 31, investors added nearly $1.3T to passive mutual funds and ETFs, while pulling more than $250M from active mutual funds.
- "Stock pickers, archetypes of 20th century Wall Street, are being pushed to the margins," write Anne Tergesen and Jason Zweig. "The pressure has gotten so great that passive has become the default,” says former Fidelity CIO Philip Bullen.
- And by the way, there's still plenty of room for the trend to continue - 66% of mutual and exchange-traded fund assets are still actively invested (down from 84% ten years ago).
- Active fund firms that don't “position themselves for the sea change” will be “relegated to the dustbin of history," said Cohen & Steers (NYSE:CNS) in shareholder letter earlier this year.
- Notable industry names: BLK, OZM, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, MN, EV, AMP
Thu, Oct. 13, 3:42 PM
Thu, Oct. 6, 8:51 AM
- In one of the highest quarterly amounts ever, investors moved $92B into ETFs in Q3, according to UBS, bringing AUM for U.S.-listed ETFs to about $2.4T.
- For the year, $150B has flowed into ETFs, putting the vehicles on track for their third straight year of inflows north of $200B. The inflows stand in major contrast to either outright net exits or minimal inflows for mutual funds.
- Still, even after doubling AUM since 2011, ETFs account for just 17% of mutual fund assets.
- Interested parties: BLK, WETF, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, EV
Wed, Aug. 17, 10:14 AM
- FQ3 adjusted earnings of $63M or $0.56 per share vs. $55M and $0.48 in FQ2, and $68.7M and $0.57 one year ago.
- Net inflows of $7.1B represent a 9% annualized growth rate. Inflows were $2.1B in FQ2 and $3.9B in FQ3 one year ago.
- AUM of $334.4B up 7% Y/Y.
- Operating expenses of $234.4M down 2% Y/Y. NextShares expenses of $2.4M up 17% Y/Y.
- CC at 11 ET
- Previously: Eaton Vance EPS in-line, beats on revenue (Aug. 17)
- EV +1%
Wed, Aug. 17, 8:46 AM
Tue, Aug. 16, 5:30 PM
Thu, Jul. 14, 7:45 PM| Thu, Jul. 14, 7:45 PM
Wed, Jul. 13, 11:54 AM
Wed, Jul. 13, 10:02 AM
- UBS Wealth Management Americas will offer ETMFs through its network of about 7.1K financial advisers, making it a key partner as Eaton Vance (NYSE:EV) tries to gain traction for the new products.
- To review, ETMFs - to be sold by Eaton Vance under the NextShares brand - are a new type of structure using much of the plumbing of ETFs (for tax efficiency), while not requiring managers to disclose portfolio holdings each day (making them attractive to active fund providers).
- Eaton Vance was the first to get the green light for these products from regulators, but until this deal with UBS, distribution channels have been very limited for Eaton Vance Stock NextShares (EVSTC), Eaton Vance Global Income Builder NextShares (EVGBC), and Eaton Vance TABS 5-to-15 Year Laddered Municipal Bond NextShares (MUTF:EVLMC).
- "This is huge for us," CEO Thomas Faust Jr. tells Barron's. “The primary issue has been a lack of evident distribution access … We have an answer for those who said, come back and talk to use when you have [a big] distribution partner for NextShares.”
Tue, Jun. 14, 8:16 AM
- Nissan (OTCPK:NSANY) says it's working on developing ethanol-based fuel cell technology that would be cheaper than hydrogen and safer. The so-called e-Bio Fuel Cell system will be fueled by renewable crops such as sugarcane or corn that are widely available in the Americas and Asia.
- The automaker aims to complete the platform in time to commercialize it by 2020.
- Nissan on the e-Bio Fuel Cell platform: "Unlike conventional systems, e-Bio Fuel-Cell features SOFC as its power source, affording greater power efficiency to give the vehicle cruising ranges similar to gasoline-powered cars (more than 600km). In addition, the e-Bio Fuel-Cell car’s distinct electric-drive features—including silent drive, linear start-up and brisk acceleration—allow users to enjoy the joys and comfort of a pure electric vehicle (NYSE:EV)."
- Automakers developing hydrogen fuel cells cars include Toyota (NYSE:TM), Honda (NYSE:HMC), and Hyundai (OTC:HYMLF).
Wed, Jun. 1, 4:01 PM
- Struggling with a steady stream of outflows in recent years, traditional asset managers still have substantial free-cash flow generation and balance sheet liquidity.
- "We think many asset managers can remain dividend machines," says KBW's Robert Lee. While the rate of dividend growth should slow this year and next, there's still room for managements to boost payouts, particularly as outfits like BlackRock (NYSE:BLK), Franklin Resources (NYSE:BEN), Eaton Vance (NYSE:EV), Invesco (NYSE:IVZ), and Legg Mason (NYSE:LM) look to build long-term records of annual dividend growth.
Wed, May 25, 11:17 AM
- Alongside a number of other investors, Eaton Vance (NYSE:EV) took part in a $40M fund-raising round for robo-advisor start-up SigFig Wealth Management.
- Citil's William Katz says the investment makes sense for Eaton Vance as SigFig will be a natural fit for EV's NextShares products.
- Also, the partnership with SigFig should connect the company with a wide range of distribution platforms as more intermediaries sign up. Katz also likes the investment as showing Eaton Vance's forward strategic thinking as its competitors also move into robo-advising.