Eaton Vance Expands Tax-Managed Product Line-Up With Addition of Three New Funds; Launch Brings Total Of Funds In Tax-Managed Family To Eight.Business Editors BOSTON--(BUSINESS WIRE)--March 26, 2002 Eaton Vance Eaton Vance is an American financial services company headquartered in Boston, MA. It is traded on the New York Stock Exchange under the symbol EV.[1] At the end of the second quarter of the 2006 fiscal year, the company had assets under management of $118.8 billion. Corp. today announced the introduction of three new tax-managed equity mutual funds: Eaton Vance Tax-Managed Equity Asset Allocation Fund asset allocation fund An investment company that varies the proportion of its portfolio devoted to stocks, bonds, and money market securities in order to reduce the variability of returns and to take better advantage of different segments of the securities (TMEAA), Eaton Vance Tax-Managed Mid-Cap Core Fund (TMMCS), and Eaton Vance Tax-Managed Small-Cap Value Fund (TMSCV). The launch of the new funds brings the total of tax-managed funds offered by the company to eight and leverages internal investment management capabilities, as well as those of the two firms acquired by Eaton Vance in September 2001, Atlanta Capital Management Company, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and Fox Asset Management LLC. "According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. industry statistics, approximately half of all 89 million U.S. investors hold assets outside qualified plans, representing potentially billions of dollars in funds that are subject to taxes," observed Thomas E. Faust Jr., Eaton Vance Corp. Executive Vice President and the firm's Chief Investment Officer. "With the SEC now requiring after-tax performance disclosure, and shareholders increasingly seeking ways to maximize returns in uncertain markets, Eaton Vance is responding to a very real demand among investors and their financial professionals for a family of funds Family of Funds A group of mutual funds offered by one investment or fund company. Each mutual fund has different characteristics and can range depending on investment objective. Also referred to as a "Mutual Fund Family" or simply a "Fund Family". that emphasizes both superior pre- and after-tax returns." Eaton Vance Tax-Managed Equity Asset Allocation Fund is managed by Duncan W. Richardson, Eaton Vance's Chief Equity Investment Officer. It utilizes a "fund of funds Fund of Funds A mutual fund that invests in other mutual funds. Notes: For example, an investor would select a general risk profile and the fund-of-funds manager would pick underlying investments from a range of products managed by external managers. " structure to invest in the seven Eaton Vance Tax-Managed Portfolios, which are Tax-Managed Growth, Tax-Managed Small-Cap Growth (formerly Tax-Managed Emerging Growth 1.2), Tax-Managed International Growth, Tax-Managed Value, Tax-Managed Multi-Cap Opportunity (formerly Tax-Managed Capital Appreciation), Tax-Managed Mid-Cap Core, and Tax-Managed Small-Cap Value. The Tax-Managed Equity Asset Allocation Fund offers the convenience and built-in diversification of an "all in one" equity fund, and the advantages of a consistent tax-managed approach. "Taxpaying investors often face a conflict between the twin goals of maintaining a prudent level of portfolio diversification Portfolio diversification Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk and to avoid damaging a portfolio's performance by the poor performance of a single security, industry, (or country). and tax efficiency," observed Faust. "Rebalancing Rebalancing The process of realigning the weightings of one's portfolio of assets. Notes: For example, if your portfolio's proportion of stock has grown too large for your intended assets weightings and risk tolerance, you might rebalance by selling some stock and putting to achieve an appropriate asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. often means selling successful investments and thereby realizing taxable gains." The Equity Asset Allocation Fund's structure allows it to adjust its asset allocation tax efficiently through using the cash invested by new shareholders to add to the Fund's underweighted Portfolio positions and by reducing the Fund's investments in overweighted Portfolios by withdrawing cash and using the proceeds to add to underweighted Portfolios. The Fund's unique structure should enable it to maintain asset allocations at targeted levels with substantially fewer taxable events than a comparably rebalanced portfolio of stand-alone mutual funds. The objective of Eaton Vance Tax-Managed Mid-Cap Core Fund is to achieve long-term, after-tax returns for its shareholders through investing in a diversified portfolio of mid-cap companies. The Fund seeks to invest in companies within the range of those included in the Standard & Poor's Mid-Cap 400 Index. The Fund invests in the Tax-Managed Mid-Cap Stock Portfolio, a newly created master fund. Boston Management and Research, a wholly-owned subsidiary of Eaton Vance Corp., serves as the Portfolio's investment adviser. Atlanta Capital Management Company, LLC, also an Eaton Vance subsidiary, is the sub-adviser handling the day-to-day management of the Portfolio. Paul J. Marshall, a Vice President of Atlanta Capital, leads the team managing the Portfolio, which also includes William R. Hackney, III, Managing Partner, and Charles B. Reed Charles B. Reed is the Chancellor of the California State University system. Before moving to California in 1998, he served as the Chancellor of the State University System of Florida from 1985–1998, and Chief of Staff of the Governor of Florida from 1984–1985. , Vice President, of Atlanta Capital. Eaton Vance Tax-Managed Small-Cap Value Fund's objective is to achieve long-term, after-tax returns for its shareholders through investing in a diversified portfolio of small company value stocks Value stocks Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or P/E ratios) in a variety of countries. . Value stocks are defined as those stocks that are considered by the investment adviser to be inexpensive or undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. in relation to the overall stock market. Small companies are defined as firms with revenues, assets or market capitalizations within the range of companies included in the Standard & Poor's Small-Cap 600 Index. The Fund invests in the Tax-Managed Small-Cap Value Portfolio, a newly created master fund. Boston Management and Research serves as the Portfolio's investment adviser. Fox Asset Management LLC, also an Eaton Vance subsidiary, is the sub-adviser handling the day-to-day management of the Portfolio. George C. Pierides, a Managing Director of Fox, serves as manager of the Portfolio. "The addition of these funds is further evidence of our commitment to provide comprehensive wealth management through asset allocation," observed Wharton P. Whitaker, President of Eaton Vance Distributors. "Eaton Vance is strategically positioned to help investment advisors provide their clients with investment solutions utilizing mutual funds or managed accounts." Eaton Vance occupies a position of leadership in the management of mutual funds for after-tax returns, having managed equity funds with an emphasis on after-tax returns since 1961. The firm offers tax-managed funds for domestic growth, international, and value stock investing. In 1978, Eaton Vance introduced its first municipal bond fund Municipal Bond Fund A mutual fund that invests in municipal bonds, operating either as an investment trust or as an open-end fund. Notes: Because the bonds are local government issues, they usually help to maximize tax-exempt income. for tax-free income tax-free income The income received but not subject to income taxes. For example, interest from most municipal bonds is free of federal income taxes and often from state and local income taxes as well. Compare tax-deferred income, tax-sheltered income. . Today, Eaton Vance offers four national, 31 state and seven limited-maturity municipal funds. Eaton Vance Corp. is a Boston-based investment management firm whose stock trades on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol EV. Eaton Vance and its affiliates manage approximately $60 billion in assets for more than 70 mutual funds and over 800 individual and institutional accounts, including corporations, hospitals, retirement plans, universities, foundations and trusts. For more complete information about any Eaton Vance mutual fund, including charges and expenses, please call or write your financial advisor for a prospectus. Read the prospectus(es) carefully before you invest or send money. |
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