Event Brief of Q1 2008 Eaton Vance Corp. Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

PARTICIPANTS

. Dan Cataldo, A.G. Edwards & Sons, Inc, VP of Financial Planning

and Analysis . Tom Faust, Eaton Vance Corp., Chairman of the Board, CEO . Bob Whelan, Eaton Vance Corp., CFO . William Katz, Buckingham Research, Analyst . Ken Worthington, JPMorgan, Analyst . Craig Siegenthaler, Credit Suisse, Analyst . Marc Irizarry, Goldman Sachs, Analyst . Cynthia Mayer, Merrill Lynch, Analyst . Roger Smith, Fox-Pitt Kelton, Analyst

OVERVIEW

EV reported 1Q08 revenues of $289.8m, net income of $57.9m, and diluted EPS of $0.46.

FINANCIAL DATA

A. Key Data From Call 1. 1Q08 revenues = $289.8m. 2. 1Q08 net income = $57.9m. 3. 1Q08 diluted EPS = $0.46. 4. 1Q08 OpEx = $190.6m.

5. Cash, cash equivalents and short-term investments on 01/31/08 = $346.5m. 6. 1Q08 share repurchase = approx. 3.4m shares or $152.5m in repurchases.

PRESENTATION SUMMARY

S1. 1Q08 Business Review (T.F.) 1. Highlights: 1. Credit market turmoil, weak equity markets, and deteriorating overall economy made for a challenging business and financial environment in three months ending Jan. 31 coinciding with 1Q08. 2. Equity markets perform poorly with S&P 500 down 11%. 3. Credit market suffered a variety of distresses that impacted some of Co.'s flagship income products. 4. In this environment, had solid first qtr. in terms of financial performance and organic growth despite these difficult conditions. 5. Total gross inflows were $11.7b, with open-end funds accounting for $7.5b. 1. Best qtr. ever of open-end fund gross sales. 6. Retail managed accounts gross flow surpassed $2b. 1. Best gross sales qtr. ever in this product area. 7. Annualizing 1Q08 run rate, Co. is on pace to match its record FY07 total gross flows. 1. Significant achievement given that 2007 included $10b in closed-end fund sales that Co. does not expect to repeat in FY08. 8. Net inflows are $3.6b, equivalent to 9% annualized organic growth rate. 1. Excluding closed-end funds, this was Co.'s second best qtr. ever in terms of net inflows.

9. 1Q08 success amidst difficult market conditions is testament

to: 1. Strength of diversified product line. 2. Excellent investment performance Co. has delivered to client.

3. Powerful distribution relationships Co. enjoyed. 4. Further evident that EV is not a narrowly focused niche co. 10. Strong net flows only partially offset $12.3b lost, due to market weakness affecting valuations across each of Co.'s major investment discipline.

1. Assets under management (AUM) declined 5% to $152.9b at 1Q08-end from $161.7b at 4Q07-end. 1. Even with 1Q08 market decline, AUM increased 13% or $17.4b YoverY from $135.5b at 1Q07-end.

11. Diluted EPS was $0.46 vs. $0.02 in 1Q07. 1. Adding back $0.34 per diluted share of closed-end fund-related expense recognized in 1Q07, adjusted earnings increased 28% YoverY. 2. Open-end Fund:

1. This was strong even under quite difficult market conditions.

2. Even with slowdown in sales of income products, strength of

equity products made this strongest qtr. ever in open-end fund

gross sales. 3. Equity fund had $5.2b in gross sales led by strong performing large-cap value dividend income in emerging market funds. 4. As Co. was selling value and equity income products, looking for opportunities to tell EV story on growth side of the ledger where: 1. Co. has a number of talented managers and strongly performing funds rated four and five stars by Morningstar,

but is quite small in terms of managed assets. 3. Fixed Income & Municipal Bond Funds: 1. Fixed income fund gross sales of $1.5b were up slightly from preceding qtr. 1. Down 20% YoverY.

2. Net flows remain positive for fixed income funds overall and

municipal bond funds, in particular, which Co. considers a

victory of sorts given how the credit turmoil has affected:

1. Municipal bond market. 2. Fund's short-term performance.

3. Although one-year performance of municipal bond funds lags

peer group, longer-term performance remains excellent. 4. National municipals fund, Co.'s largest municipal bond fund, continues to rank Number 1 among its peers over the past five

years. 1. Has an overall five-star rating for Morningstar.

5. Believes issues that had impacted the performance of municipal

bond market are not due to fundamental problems with underlying credit quality of municipal issuers, which remains

strong, but changing market via the value of insurance guarantee that backs many municipal securities. 1. Believes muni market is [re-poised] for recovery. 6. Continues to manage all of municipal funds open-end and closed-end with same relative value approach that has served clients well over the long-term. 4. Bank Loans:

1. Had over $900m in net outflows, due to: 1. Unprecedented declines in loan prices. 2. Resulted decline in funds' net asset values. 2. Believes price declines are not a fundamental credit issue. 1. Reflected a balance of supply over demand due to factors

related to broader financial market turmoil. 3. Loan default rates currently stand at approx. 1%, well below historical averages.

1. Loan prices are currently trading in a range of approx. 89%

at par value. 4. Co. is doubtful that loan defaults will increase anywhere near the point that would justify a price of $0.89 on the dollar. 5. Loans Co. holds in its portfolios currently have credit outlooks and interest coverage ratios consistent with prior expectations and within normal ranges of what Co. has seen over the nearly 20 years it has been in this business.

6. Overall bank loan AUM has dropped almost 10% over the past

year. 1. Net outflows continue. 7. From a long-term perspective, believes bank loans represent extraordinary value at current levels. 5. Auction Rate Securities Market: 1. Currently manages approx. $31b in 38 closed-end funds. 2. In addition to common shares, closed-end funds have approx. $5b of auction-preferred or APS outstanding. 3. Beginning last week, dislocations in broader credit market have caused APS of many closed-end funds, including Co., to experience an imbalance of sale orders over bids in regular auction, with result that auctions have not cleared.

4. Underlying fund continues to pay dividends to all APS shareholders. 1. It is specified maximum rate rather than a market-clearing rate. 2. This specified maximum rate differs by fund. 1. In most cases, is not materially different than market

clearing rate in recent successful auctions. 5. Earnings rate on EV funds assets continues to exceed cost of APS based on maximum specified rates. 1. Leveraging funds with APS continues to be economically viable. 6. Each of closed-end funds remains in compliance with all asset coverage tasks. 1. All issued APS …