Eaton Vance

Eaton Vance Corp.

Company type	Subsidiary
Industry	Investment management
Founded	1924 (1924)
Founder	Charles F. Eaton Jr.
Fate	Acquired by Morgan Stanley
Headquarters	Boston , United States
Area served	United States, global (including London office)
Key people	Thomas E. Faust Jr (Chairman and CEO)
Products	Mutual funds, tax-efficient funds, closed-end funds, variable trust funds, managed portfolios, wealth management services
Parent	Morgan Stanley

Eaton Vance Corp. is a longstanding investment management company headquartered in Boston, established in 1924, which ranks it among the earliest firms in the sector. The organization functions through five main investment subsidiaries, delivering a range of offerings such as mutual funds, tax-efficient funds, closed-end funds, variable trust funds, managed portfolios, and wealth management services. Its clientele includes individuals, institutional investors, and financial advisors throughout the United States. Eaton Vance broadened its global footprint by inaugurating an office in London in 2005.

In March 2021, Morgan Stanley finalized its acquisition of Eaton Vance, a transaction initially announced in October 2020. This integration elevated Morgan Stanley's global assets under management to $5.4 trillion within its Wealth Management and Investment Management divisions. The purchase enhanced Morgan Stanley’s market position and expanded its array of investment products.

History

The origins of Eaton Vance trace back to 1924 when Charles F. Eaton Jr. founded Eaton & Howard Inc., an investment firm based in Boston. Eaton assumed the presidency in 1931. The company introduced several funds over time, notably launching the Growth Fund in 1962 with a focus on high-growth equities. In 1979, Vance Sanders & Company acquired the firm, renaming it Eaton & Howard, Vance Sanders Inc. The corporate entity known as Eaton Vance Corporation was officially established as a holding company on February 20, 1981.

By 1983, Eaton Vance was managing 23 mutual funds along with various accounts totaling assets exceeding $2.3 billion. By late 1989, its offerings had grown to include 34 low-risk and tax-exempt funds. Starting in 1990, the firm expanded distribution channels through banks, generating $450 million in sales; by 1993, more than 60 banks across the U.S. distributed its funds, with assets under management reaching $12 billion.

In 1995, Eaton Vance revamped its fund structure adopting a "hub-and-spoke" system and launched specialized funds aimed at sectors such as entertainment, telecommunications, and personal computers distributed via banks. Although results varied, assets under management increased to $14.7 billion by 1997, with notable investments in international markets including Greater China and India.

Growth was further accelerated through targeted acquisitions: in 2001, Eaton Vance acquired Atlanta Capital Management and Fox Asset Management, boosting assets under management by 17% to $54.6 billion. Thomas E. Faust Jr took on the roles of CEO and Chairman in 2007 and led the firm to reach $158.1 billion in AUM by September of that year. In 2012, the company acquired a 49% interest in Hexavest Inc., a Canadian investment firm.

Continuing to expand its socially responsible investment portfolio, Eaton Vance purchased Calvert Investments in 2017. This strategic trajectory culminated with Morgan Stanley’s $7 billion acquisition of Eaton Vance announced in October 2020; the transaction was completed on March 1, 2021, representing a pivotal development in Eaton Vance’s corporate evolution and market presence.

Business model and management

Eaton Vance focuses primarily on investment management with an emphasis on actively managed funds rather than providing wealth management services such as financial planning or brokerage operations. Distribution is not directly controlled by the company; instead, financial advisors and retail investors independently select their preferred funds. The firm's strategy prioritizes active fund management over passive investment approaches.

As of 2020, Tom Faust holds the positions of Chairman and CEO—a role he has maintained since 2007—guiding the company’s strategic direction to uphold its leadership in active fund management.

Affiliates

• Eaton Vance Management, with its main office located in Boston, Massachusetts
• Parametric Portfolio Associates, headquartered in Seattle and maintaining branches in New York City, Boston, Minneapolis, Westport (Connecticut), and Sydney, Australia
• Atlanta Capital
• Hexavest, based in Montreal, Canada
• Calvert Research and Management

These affiliated entities enhance the firm's international reach and support a wide range of product offerings across various markets.