Eaton Vance Management is a large financial advisor firm that has its main offices in Boston, MA. The firm has around $102 billion in assets under management (AUM) and a team of about 230 financial advisors. These advisors principally work with individual clients, though the firm has a number of institutional and advisory clients as well. Eaton Vance provides investment management services, but financial planning is not among its offerings.
Eaton Vance is a fee-only firm. As a result, its sole form of compensation is the advisory fees that clients pay. This avoids the conflicts of interest found at a fee-based firm, which may take commissions for selling certain products to clients.
Eaton Vance Management Background
The first mutual fund that would eventually grow to become Eaton Vance Management was created in 1924. However, the firm didn't reach its current form until 1979 when Eaton & Howard and Vance, Sanders & Company officially merged. Thomas Faust Jr. currently serves as the chairman, president and CEO of the firm. Eaton Vance is a wholly owned subsidiary of Eaton Vance Corp.
Eaton Vance's staff holds a range of advisory certifications and designation, including chartered alternative investment analyst (CAIA), chartered financial analyst (CFA) and certified investment management analyst (CIMA).
Eaton Vance Management Client Types and Minimum Account Sizes
Eaton Vance Management has more than 40,000 clients, the vast majority of whom are individuals. The firm also maintains advisory relationships with investment companies, pooled investment vehicles, retirement plans, charitable organizations, state and municipal government entities, insurance companies and businesses.
To become a client of Eaton Vance, you'll need to meet their minimum account sizes, of which there are many. These vary depending on the type of investment strategy your portfolio utilizes.
- Corporate Ladders: $100,000
- Tax Advantaged Bond Strategies: $250,000
- Parametric Absolute Return Strategy: $3 million
- Liability Driven Investments: $5 million
- Eaton Vance Real Estate Investment Strategy: $10 million
- Parametric DeltaShift: $20 million
- Various large-cap, mid-cap and small-cap equity and high-yield bond strategies: $25 million
- Various bond and income strategies: $50 million
- Parametric Emerging Markets: $75 million
- Emerging Markets Debt Opportunities: $100 million
- Floating Rate Bank Loan: $150 million
- Global Macro Absolute Return strategies: $250 million
Services Offered by Eaton Vance Management
Eaton Vance offers a wide range of portfolio management services through a series of separately managed accounts (SMAs) that primarily consist of equity, fixed-income, mixed-asset and alternative strategies. Each strategy is unique, involving different securities and risk levels. Eaton Vance also participates in a wrap fee program, which allows trading and transactional costs to be included in a single price for its investment management service.
Eaton Vance Management Investment Philosophy
Eaton Vance employs a range of strategies, tailoring its investment approach to the individual needs of clients. Advisors take into account such factors as liquidity needs, time horizon and risk tolerance before investing your money. Depending on these factors, advisors will recommend an appropriate strategy or mix or securities.
When it comes to analyzing investments, Eaton Vance places a specific emphasis on fundamental analysis. It also looks to thoroughly vet all companies, funds and other investments that advisors are considering for client portfolios. Advisors also typically pursue long-term gains and stability, with an eye towards minimizing tax liability.
Fees Under Eaton Vance Management
The fee schedule for the vrious portfolio management services at Eaton Vance vary significantly by strategy and the amount of money you choose to invest. Fees can also differ depending on the types of investments you choose, and they may be based on net or gross assets.
Eaton Vance's management fees range from 0.10% to 1.00% of a client's assets annually. Fees may be negotiated between the client and the firm, and they typically start out high and decrease as your investment does too. All charges are calculated and paid on either a monthly or quarterly basis.
What to Watch Out For
Eaton Vance Management may charge performance-based fees to certain client accounts. This creates a potential conflict of interest, as advisors may have an incentive to make riskier or more speculative investments. However, the firm is still a fiduciary, legally binding it to act in your best interest no matter what.
Opening an Account With Eaton Vance Management
For those looking to open an account with Eaton Vance, you'll need to call the firm at either (800) 225-6265 or (617) 482-8260, and speak to a representative.
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