Eaton Vance

Eaton Vance is an American investment-management brand with roots in Boston dating to 1924. Its history began when Charles F. Eaton Jr. formed Eaton & Howard Inc., an investment firm that later developed into a large provider of mutual funds, separately managed accounts, institutional mandates, exchange-traded funds, closed-end funds and other investment strategies. The business became particularly associated with active management, tax-aware investing, income-oriented strategies and specialized portfolio construction rather than with brokerage or broad personal financial planning. The firm expanded through several stages of product development and corporate restructuring. It established a growth-oriented fund in 1962, changed ownership and name after its 1979 acquisition by Vance Sanders & Company, and formed Eaton Vance Corporation as a holding company in 1981. During the 1980s and 1990s, it grew its mutual-fund platform, promoted products through banks and developed tax-exempt, specialty and internationally oriented funds. Its distribution relationships with banks helped make its products available to a wider retail audience, while its investment platform increasingly served institutions and financial professionals as well. Eaton Vance broadened its capabilities through acquisitions and affiliate investments. In 2001 it acquired Atlanta Capital Management and Fox Asset Management. It later acquired a significant minority interest in Hexavest, a Canadian investment manager, and purchased Calvert Investments in 2017, strengthening its presence in socially responsible and environmental, social and governance-oriented investing. The firm also operated through investment affiliates including Eaton Vance Management, Parametric Portfolio Associates, Atlanta Capital, Hexavest and Calvert Research and Management. Morgan Stanley announced an agreement to acquire Eaton Vance in October 2020. The transaction was completed on March 1, 2021, after which Eaton Vance became part of Morgan Stanley Investment Management. The acquisition ended Eaton Vance Corporation's independent public-company existence, but the Eaton Vance name and investment capabilities continued as brands and businesses within Morgan Stanley. The firm is therefore best understood today as an operating investment-management brand within a larger financial-services group rather than as an independent listed company.

Eaton Vance traces its origins to 1924, when Charles F. Eaton Jr. established Eaton & Howard Inc. in Boston. Eaton later became the firm's president and director. The company developed as an investment-management business rather than a brokerage-led wealth-management institution, building products and managed accounts for investors seeking professionally managed portfolios. A significant early product milestone came in 1962 with the creation of the Growth Fund, which invested primarily in common stocks of companies viewed as having strong expansion prospects. In 1979, Vance Sanders & Company acquired the business, and the organization became Eaton & Howard, Vance Sanders Inc. Two years later, on February 20, 1981, Eaton Vance Corporation was established as a holding company, providing the corporate structure associated with the later enterprise. The company expanded its mutual-fund presence during the 1980s. By the end of 1983 it managed 23 mutual funds as well as numerous individual and corporate accounts, with more than $2.3 billion in client accounts. Its product range later became strongly associated with lower-risk, tax-exempt and tax-aware funds. Beginning in 1990, Eaton Vance promoted its funds through banks, helping distribute its products beyond direct fund channels. By 1993, more than 60 U.S. banks offered Eaton Vance funds. During the 1990s, the company experimented with a hub-and-spoke structure for its funds and introduced specialty products distributed through banks. These products included exposure to sectors such as entertainment, telecommunications and personal-computer industries. Although the restructuring itself was not uniformly successful, the firm continued to grow and developed exposure to international markets, including Greater China, Greater India and other emerging markets. Eaton Vance's next phase emphasized affiliates and specialist capabilities. In 2001 it acquired Atlanta Capital Management and Fox Asset Management. These transactions increased the range of strategies available through the group and contributed to substantial growth in assets under management. In 2005 the firm opened an office in London, marking a further step in its international operating footprint. Thomas E. Faust Jr. became chairman and chief executive officer in 2007, succeeding James B. Hawkes. The firm continued to expand through strategic investments. In 2012 it purchased a 49% interest in Hexavest, a Montreal-based Canadian investment manager. In 2017 it acquired Calvert Investments, adding a well-known responsible-investing platform and strengthening its ability to offer socially responsible and ESG-related strategies. Eaton Vance's broader affiliate structure included Eaton Vance Management, Parametric Portfolio Associates, Atlanta Capital, Hexavest and Calvert Research and Management. Eaton Vance's business model centered on investment products and portfolio management. It did not primarily control the distribution relationship with individual investors in the way a vertically integrated brokerage or wealth manager might. Instead, financial advisers, institutions, retirement-plan channels and retail investors selected among its funds and managed strategies. The firm was principally known for active management, tax-sensitive portfolio design, income strategies and specialist investment capabilities. In October 2020, Morgan Stanley announced that it would acquire Eaton Vance. The transaction was presented as a way to combine Eaton Vance's investment-management platform and affiliates with Morgan Stanley's wealth-management and institutional investment businesses. The deal closed on March 1, 2021. After completion, Eaton Vance became part of Morgan Stanley Investment Management, and the independent Eaton Vance Corporation ceased to exist as a standalone listed company. The Eaton Vance name remains in use for investment products and operating capabilities within Morgan Stanley's asset-management organization.

1. 2021Acquisition closes

   Morgan Stanley completes the acquisition on March 1, integrating Eaton Vance into Morgan Stanley Investment Management.

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2. 2020Morgan Stanley announces acquisition

   Morgan Stanley announces an agreement to acquire Eaton Vance for approximately $7 billion.

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3. 2017Calvert Investments is acquired

   The purchase adds responsible-investing capabilities to Eaton Vance's platform.

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4. 2012Hexavest investment

   Eaton Vance acquires a 49% interest in Hexavest, a Canadian investment manager.

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5. 2007Thomas E. Faust Jr. becomes chairman and CEO

   Thomas E. Faust Jr. succeeds James B. Hawkes as chairman and chief executive officer.

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6. 2005London office opens

   The firm opens an office in London as part of its international expansion.

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7. 2001Atlanta Capital and Fox Asset Management are acquired

   The acquisitions broaden Eaton Vance's investment-affiliate structure and strategy range.

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8. 1990Bank distribution begins

   Eaton Vance begins promoting its funds through banks, expanding access to its mutual-fund products.

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9. 1981Eaton Vance Corporation is established

   Eaton Vance Corporation is formed as a holding company on February 20.

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10. 1979Vance Sanders acquires the business

    Vance Sanders & Company purchases the firm, which becomes Eaton & Howard, Vance Sanders Inc.

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11. 1962Growth Fund is introduced

    The firm establishes the Growth Fund, focused primarily on common stocks of companies with aggressive growth prospects.

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12. 1924Eaton & Howard is formed

    Charles F. Eaton Jr. forms Eaton & Howard Inc., the Boston investment firm from which Eaton Vance traces its origins.

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Active, research-driven investment management with an emphasis on tax-aware equity and fixed-income strategies, income generation, municipal investing, specialized mandates and solutions for individuals, institutions and financial intermediaries.

• Eaton Vance mutual fundsMutual funds

  The mutual-fund platform has historically been the core of Eaton Vance's retail and intermediary offering. It includes actively managed equity, fixed-income, municipal, income, global and specialty strategies. The firm became particularly associated with tax-aware and tax-exempt funds, distributed through advisers, institutions and bank channels.

• Eaton Vance Growth FundEquity mutual fund1962

  Introduced in 1962, the Growth Fund invested primarily in common stocks of companies considered capable of aggressive growth. It represents an early example of Eaton Vance's active equity-management approach and its use of focused investment products to address specific investor objectives.

• Eaton Vance Tax-Managed Global Diversified Equity Income FundTax-managed equity-income fund

  This strategy combines global equity exposure with an income objective and tax-management techniques. It reflects Eaton Vance's longstanding positioning around tax-sensitive portfolio construction and diversified income generation for investors seeking a balance between distributions and after-tax outcomes.

• Eaton Vance Floating-Rate Advantage FundFloating-rate fixed-income fund

  The fund is an income-oriented strategy focused on floating-rate investments. Floating-rate exposure is commonly used to seek income with less direct duration sensitivity than conventional fixed-rate bonds, making this type of product consistent with Eaton Vance's broader fixed-income and income-management franchise.

• Calvert responsible-investing strategiesResponsible-investing funds2017

  Calvert's investment platform added socially responsible and ESG-oriented capabilities to the Eaton Vance group after the 2017 acquisition. These strategies incorporate environmental, social and governance considerations into research, security selection or portfolio construction, subject to the objectives of individual products.

• Parametric tax-managed and systematic strategiesSeparately managed and institutional strategies

  Parametric contributed systematic, customized and tax-managed portfolio capabilities to the broader Eaton Vance affiliate network. The platform serves institutions, advisers and high-net-worth investors through separately managed accounts, model-based solutions and other portfolio mandates.

• 2020Agreement to be acquired by Morgan StanleyM&A

  Eaton Vance and Morgan Stanley pursued a combination intended to join Eaton Vance's investment-management platform with Morgan Stanley's broader wealth- and investment-management businesses.

  What changed. Morgan Stanley announced an agreement to purchase Eaton Vance for approximately $7 billion.

  Aftermath. The transaction closed on March 1, 2021, and Eaton Vance was integrated into Morgan Stanley Investment Management.

  Announced transaction value. $7 billion (Announced October 8, 2020)

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• 2017Acquisition of Calvert InvestmentsM&A

  Eaton Vance sought to broaden its investment capabilities and strengthen its presence in socially responsible investing.

  What changed. The company acquired Calvert Investments and added its responsible-investing platform to the group.

  Aftermath. Calvert became part of Eaton Vance's affiliate structure and expanded the group's responsible-investing offering.

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• 1995Hub-and-spoke fund restructuring and specialty-fund expansionStrategy

  The firm was reorganizing parts of its fund platform and looking for new ways to distribute specialized investment products through banks.

  What changed. Eaton Vance adopted a hub-and-spoke structure for funds and introduced specialty funds with exposure to sectors including entertainment, telecommunications and personal computers.

  Aftermath. The restructuring was not uniformly successful, but the firm continued expanding and later managed assets with significant international exposure.

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• 1962Launch of the Growth FundProduct launch

  Eaton Vance sought to offer investors a dedicated strategy for companies viewed as having substantial growth potential.

  What changed. The firm introduced a fund investing primarily in common stocks of aggressive-growth companies.

  Aftermath. The fund became an early example of Eaton Vance's active, strategy-specific product development.

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• 2021Morgan Stanley completes Eaton Vance acquisition

  The acquisition closed on March 1, 2021. Eaton Vance subsequently operated within Morgan Stanley Investment Management, ending its status as an independent listed company.

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• 2020Morgan Stanley announces agreement to acquire Eaton Vance

  Morgan Stanley announced a transaction valued at approximately $7 billion to acquire Eaton Vance and combine its investment-management capabilities with Morgan Stanley's existing platform.

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• 2017Eaton Vance acquires Calvert Investments

  The acquisition added Calvert's responsible-investing and socially responsible mutual-fund capabilities to Eaton Vance's product and affiliate platform.

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• 2012Eaton Vance takes a 49% interest in Hexavest

  Eaton Vance purchased a 49% stake in Hexavest, a Canadian investment-management firm headquartered in Montreal.

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• 2001Eaton Vance expands through acquisition of Atlanta Capital Management and Fox Asset Management

  The firm acquired Atlanta Capital Management and Fox Asset Management, broadening its investment-affiliate network and increasing its assets under management.

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1. Eaton Vance
2. Morgan Stanley to Acquire Eaton Vance
3. Morgan Stanley Completes Acquisition of Eaton Vance
4. Eaton Vance official website