Eaton Vance reported $121.9 billion in client assets under management as of Jan. 31, the end of its fiscal first quarter, down 1% from the prior quarter and off 20% from the year before, according to a company announcement.
Net inflows of $3.3 billion for the quarter and the Dec. 31 acquisition from M.D. Sass Investors Services of that companys $6.9 billion tax-advantaged bond strategies business helped Eaton Vance cushion the decline in client assets as the S&P 500 stock index, for the same period, tumbled 15% from the prior quarter and 40% from its year-earlier level.
For the latest quarter, Eaton Vances equity fund assets dropped 10% to $46.6 billion, as net inflows of $1.2 billion couldnt offset $6.6 billion in market declines. The firms fixed-income fund assets slipped 2.6% to $19.9 billion, with net outflows and market declines both contributing to the drop. Client assets in bank loan funds dropped 9.7% to $12.5 billion.
However, net inflows and the acquired M.D. Sass assets helped Eaton Vance more than offset $3.2 billion in market declines for its institutional accounts, leaving the firms institutional client assets at $42.2 billion, up 18% from the prior quarter and up 3.4% from the year before.
In a conference call, company executives conceded that the drop in average assets under management had hurt revenues and net income. For the latest quarter, revenues came to $209.5 million, down 16% from the prior quarter and 28% below the year before. Net income came to $24.7 million, down 29% from the prior quarter and off 54% from the prior year.
Eaton Vance remains one of the few sizable money managers that hasnt announced layoffs as equity markets plunged over the past year. Executives on the conference call said the firms latest head count, at 1,079, is 10% higher than a year ago, even as compensation has dropped 15%.
While conceding the current moment is one of intense uncertainty and challenge, Thomas E. Faust, the companys chairman and CEO, said Eaton Vance is better positioned to emerge stronger from the market crisis than any other investment manager.