- rebranding EVM's rules-based, systematic investment-grade fixed income strategies as Parametric and aligning internal reporting consistent with the revised branding;
- combining the technology and operating platforms supporting the individual separately managed account (SMA) businesses of Parametric and EVM; and
- integrating the distribution teams serving Parametric and EVM clients and business partners in the registered investment advisor (RIA) and multi-family office (MFO) market.
The initiative will increase Parametric's capabilities in rules-based investment strategies by adding industry-leading expertise in systematically managed investment-grade municipal, taxable and crossover tax-free/taxable bond strategies. Based on assets under management as of and fee revenue for the fiscal quarter ended
Parametric's Custom Core™ benchmark-based separate account offerings will expand to encompass equity and fixed income securities, a diverse range of broad-market and specialty indexes, and customized maturity-based and liability-driven portfolio benchmarks. Customized, benchmark-based separate accounts – sometimes referred to as "custom indexing" – compete against index exchange-traded funds and index mutual funds across a range of applications on the basis of enhanced tax efficiency, increased client control over portfolio construction and management, and the avoidance of pass-through fund operating and trading costs. In fixed income, Parametric separate accounts will also provide the potential benefits of active credit oversight.
On a pro forma basis, Parametric's benchmark-based separate accounts offered to individual investors had managed assets of
The strategic initiative being announced today will be implemented over the balance of 2019 and early 2020. Eaton Vance does not expect the initiative to result in reduced headcount. Investments to support the Company's growing individual SMA business and expanded distribution in the RIA/MFO channel are expected to be offset by increased revenue growth and cost savings resulting from greater operating efficiencies.
"This initiative recognizes the extraordinary opportunity available for Eaton Vance to build on our leading positions in rules-based investing, individual separate accounts and specialty wealth management solutions," said
"Parametric is thrilled to add EVM's rules-based fixed income strategies to our systematic investment capabilities," said
Rules-Based, Systematic Investment-Grade Fixed Income Strategies
Under the strategic initiative, EVM's Tax Advantaged Bond Strategies (TABS) division and the Quantitative Strategies (QS) group within EVM Investment-Grade Fixed Income (IGFI) will affiliate with Parametric and the rules-based, systematic investment strategies they manage will be offered under the Parametric brand.
Individual Separately Managed Accounts Technology and Operating Platform
As a component of the strategic initiative, Eaton Vance is establishing a single technology and operating platform to support the individual SMA businesses of Parametric and EVM. By combining the Parametric and EVM individual SMA platforms, the Company seeks to ensure consistency of service excellence, realize operating efficiencies and accommodate the much-expanded individual SMA business the Company anticipates developing.
According to a recent report from the
Distribution to Registered Investment Advisors and Multi-Family Offices
In the strategic initiative, Eaton Vance will integrate the Company's distribution teams serving the RIA/MFO market into a single combined sales and service organization, empowering its registered representatives and wealth management specialists to draw from the entire range of the Company's investment strategies and solutions to best serve clients and business partners in this growing channel. By adopting an integrated coverage model for the RIA/MFO market, the Company seeks to further its position as a market leader in partnering with clients and advisors to address some of the greatest challenges faced by high-net-worth investors – delivering returns, managing risks, maximizing portfolio efficiency, minimizing investment taxes, addressing portfolio concentrations, securing lifetime income, transferring wealth across generations, achieving philanthropic goals and aligning portfolio holdings with clients' goal and values.
The new Parametric Eaton Vance Wealth Management Strategies (WMS) group will combine Parametric's Wealth Management distribution team with the
"Our broad lineup of wealth management strategies and services positions Eaton Vance and Parametric uniquely to serve RIAs, multi-family offices and their clients," said
Conference Call Information: Eaton Vance will host a conference call and webcast at
About Eaton Vance: Eaton Vance provides advanced investment strategies and wealth management solutions to forward-thinking investors around the world. Through principal investment affiliates EVM, Parametric,
About Parametric: Parametric uses investment science to build and manage systematic investment strategies and to implement custom portfolio solutions providing clients with targeted investment exposures with control of costs and taxes. Based on principles of intellectual rigor, ingenuity and transparency, Parametric seeks to deliver repeatable client outcomes with consistently high levels of service and maximum efficiency. Headquartered in
About EVM: EVM applies fundamental research to the active management of equity, taxable and municipal fixed income, floating-rate income, alternative and multi-asset portfolios. Pro forma for today's announced changes, as of
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
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