Eaton Vance Corp. (NYSE:EV) Q1 2020 Earnings Conference Call - Final Transcript
Feb 26, 2020 • 11:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Eaton Vance Corp. First Fiscal Quarter Earnings Conference call and Webcast. [Operator Instructions]
I would now like to hand the conference over to Eric Senay, Director of Investor Relations. Thank you. Please go ahead.
Pierric G. Senay
Thank you. Good morning, and welcome to our fiscal 2020 first quarter earnings call and webcast. With me this morning are Tom Faust, Chairman and CEO of Eaton Vance; as well as our CFO, Laurie Hylton. In today's call, we will first comment on the quarter and fiscal year, and then take your questions. As always, the full earnings release and charts we will refer to during the call are available on our website, eatonvance.com, under the heading, Investor Relations. And today's presentation contain forward-looking statements about our business and financial results. The actual results may differ materially from those projected due to risks and uncertainties in our business, including, but not limited to, those discussed in our SEC filings. These filings, including our 2019 Annual Report and Form 10-K, are available on our website or upon request at no charge.
I will now turn the call over to Tom.
Thomas Ewart Faust
Good morning, and thank you for joining us. Earlier today, we reported $0.86 of adjusted earnings per diluted share for the first quarter of fiscal 2020, which is up 18% from $0.73 per diluted share in the first quarter of fiscal 2019 and down 9% from $0.95 per diluted share in the fourth quarter of fiscal 2019. On a combined basis, seed capital and consolidated CLO entity investments contributed $0.03 to adjusted earnings per diluted share in the first quarter of fiscal 2020 and negative $0.02 in the first quarter of fiscal 2019 and $0.08 in the fourth quarter of fiscal 2019. Excluding these items, first quarter fiscal 2020 adjusted earnings per diluted share were up 11% year-over-year and down 5% sequentially. We ended the first quarter of fiscal 2020 with $518.2 billion of consolidated assets under management, which is up 17% from a year ago and up 4% from the previous quarter-end. First quarter consolidated net inflows were $6.1 billion or $5 billion excluding what we now call Parametric overlay services, what we formerly referred to as exposure management. This was our 22nd consecutive quarter of positive net flows, and a solid beginning to what we expect will be our 25th consecutive year of positive net flows. Our first quarter net inflows equate to 5% annualized internal growth in managed assets, as calculated both with and without Parametric overlay services. Looking at our flow results on a revenue basis. In the first quarter, we achieved 5% annualized internal growth in consolidated management fee revenue, which compares to minus 4% in the first quarter of fiscal 2019 and positive 2% in the fourth quarter of fiscal 2019. Although revenue-based internal growth rates are not widely reported by other public asset managers, we continue to believe that Eaton Vance ranks among the investment industry leaders by