EATON VANCE CORP. (NYSE:EV) Files An 8-K Regulation FD DisclosureItem 7.01.
Eaton Vance Corp. (“Eaton Vance”) has decided to maintain the Company’s ownership interest in Hexavest at 49 percent, rather than increasing our position to 75 percent under the terms of the option agreement established in 2012 when we acquired our interest in Hexavest. After careful review, we have concluded that Hexavest’s current ownership and governance model are most conducive to their business and investment success at this time. As a result of this determination, Eaton Vance will recognize a loss under U.S. generally accepted accounting principles (“GAAP”) equal to the option’s carrying amount of $6.5 million as of December 11, 2017. The loss will be recorded to gains (losses) and other investment income, net, in the Company’s Consolidated Statement of Income. The GAAP loss is a non-cash charge, and does not reflect any current expenditures.
Under the Hexavest shareholder agreements that remain in place, Eaton Vance continues to maintain rights of first refusal and other significant shareholder rights, including board representation. We look forward to continuing to work with Hexavest as a major shareholder and as Hexavest’s exclusive distribution partner in all markets outside Canada.
About EATON VANCE CORP. (NYSE:EV)
Eaton Vance Corp. is engaged in business of managing investment funds and providing investment management and advisory services to individuals and institutions. The Company seeks to develop and sustain management expertise across a range of investment disciplines, and offer investment products and services through various distribution channels. It operates through investment adviser to funds and separate accounts segment. The Company, through its subsidiaries, Eaton Vance Management and Atlanta Capital Management, LLC, and other affiliates, manages active equity, income and alternative strategies across a range of investment styles and asset classes, including the United States and global equities, floating-rate bank loans, municipal bonds, high-yield and investment grade bonds. Through its subsidiary, Parametric Portfolio Associates LLC, it manages a range of engineered alpha strategies, including systematic equity, systematic alternatives and managed options strategies.