morgan stanley acquisition of eaton vance

In March, DeMaso told Citywire that mega-mergers between asset managers could be a ‘yellow flag’ for analysts. Franklin Templeton has acquired Legg Mason; Invesco might buy Janus Henderson, or someone else; and Morgan Stanley is buying Eaton Vance. Morgan Stanley and Eaton Vance expect the transaction to be completed no later than early in the second quarter. The major acquisition news updates & events of Eaton Vance (EV) by Morgan Stanley (MS) are listed below.A comprehensive data source for. The call and presentation will be available at www.morganstanley.com or by dialing 1-877-895-9527 (domestic) and 1-706-679-2291 (international); the passcode is 5966816. ‘The benefit to Morgan Stanley acquiring Eaton Vance has more to do with reloading a lot of investment capabilities that they, frankly, sold off as a part of divesting their retail asset management business back in 2009,’ he said. Traders looking to familiarize themselves with the Morgan Stanley (MS) merger with Eaton Vance (EV) and trade the merger arbitrage spreadExisting shareholders and investors wishing to stay abreast of the latest deal … From volatility and geopolitics to economic trends and investment outlooks, stay informed on the key developments shaping today's markets. Greggory Warren, a sector strategist at Morningstar who covers Eaton Vance, wrote: ‘We did not expect to see a more traditional asset manager like narrow-moat-rated Eaton Vance being taken out by one of the investment banks, which have been far more focused on their brokerage and wealth-management businesses the past decade, with some even shedding their asset-management units in the aftermath of the 2008-09 financial crisis. Traders looking to familiarize themselves with the Morgan Stanley (MS) merger with Eaton Vance (EV) and trade the merger arbitrage spreadExisting shareholders and investors wishing to stay abreast of the latest deal developments In addition, Eaton Vance common shareholders will receive a one-time special cash dividend of $4.25 per share to be paid pre-closing by Eaton Vance to Eaton Vance common shareholders from existing balance sheet resources. Neither Morgan Stanley nor Eaton Vance assumes any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Yes, You Can Be a Tech Innovator at Morgan Stanley. In connection with the proposed transaction between Morgan Stanley and Eaton Vance Corp. (“Eaton Vance”), Morgan Stanley and Eaton Vance will file relevant materials with the Securities and Exchange Commission (the “SEC”), including a Morgan Stanley registration statement on Form S-4 that will include a prospectus of Morgan Stanley. The acquisition will boost Morgan Stanley Investment Management’s (MSIM) AUM from $665bn to $1.2trn, with at least $5bn of combined revenues, the statement said. The ESG business Goldman referred to is Calvert, a specialist shop founded in 1976 and acquired by Eaton Vance in 2016. ‘For Morgan Stanley, [the deal] is a way to access to trends in ESG investing and direct indexing,’ he said. Morgan Stanley and Eaton Vance Corp. have entered into a definitive agreement under which Morgan Stanley will acquire Eaton Vance, a leading provider of advanced investment strategies and wealth management solutions with over $500 billion in assets under management (AUM), for an equity value of approximately $7 billion. He thinks the strategy behind the deal is “clear and compelling.” Eaton Vance WaterOak Advisors will remain a separate RIA and get to keep its new name. Media Relations: 212-761-2448 BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF MORGAN STANLEY AND EATON VANCE ARE URGED TO READ THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Morgan Stanley MS recently entered into an acquisition deal with Boston, MA-based Eaton Vance Corp. EV, per which the former will acquire the latter for an … Important risk factors that may cause such a difference include, but are not limited to, (i) the completion of the proposed transaction on anticipated terms and timing, including obtaining required regulatory approvals, anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of the combined company’s operations and other conditions to the completion of the acquisition, including the possibility that any of the anticipated benefits of the proposed transaction will not be realized or will not be realized within the expected time period, (ii) the ability of Morgan Stanley and Eaton Vance to integrate the business successfully and to achieve anticipated synergies, risks and costs, (iii) potential litigation relating to the proposed transaction that could be instituted against Morgan Stanley, Eaton Vance or their respective directors, (iv) the risk that disruptions from the proposed transaction will harm Morgan Stanley’s and Eaton Vance’s business, including current plans and operations, (v) the ability of Morgan Stanley or Eaton Vance to retain and hire key personnel, (vi) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the acquisition, (vii) continued availability of capital and financing and rating agency actions, (viii) legislative, regulatory and economic developments, (ix) potential business uncertainty, including changes to existing business relationships, during the pendency of the acquisition that could affect Morgan Stanley’s and/or Eaton Vance’s financial performance, (x) certain restrictions during the pendency of the acquisition that may impact Morgan Stanley’s or Eaton Vance’s ability to pursue certain business opportunities or strategic transactions, (xi) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, as well as Morgan Stanley’s or Eaton Vance’s management’s response to any of the aforementioned factors, (xii) dilution caused by Morgan Stanley’s issuance of additional shares of its common stock in connection with the proposed transaction, (xiii) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (xiv) those risks described in Item 1A of Morgan Stanley’s most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K, (xv) those risks described in Item 1A of Eaton Vance’s most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K and (xvi) those risks that will be described in the registration statement on Form S-4 available from the sources indicated above. I am pretty sure this is close to the all-time-highs for Eaton Vance that were reached in early 2018. A leader in value-add fixed income solutions, Eaton Vance fills product gaps and delivers quality scale to the MSIM franchise. Your online account is ready and you will now have access to: Not registered yet? Morgan Stanley agreed Thursday to buy investment management firm Eaton Vance for about $7 billion, the bank said in a statement. The acquisition advances Morgan Stanley’s strategic transformation with three world-class businesses of scale: Institutional Securities, Wealth Management and Investment Management. Our firm's commitment to sustainability informs our operations, governance, risk management, diversity efforts, philanthropy and research. We need your vote. “By joining Morgan Stanley, we will be able to further accelerate our growth by building upon our common values and strengths, which are focused on our commitment to investment excellence, innovation and client service. Eaton Vance. This compares to an industry average of -3% for active shops, according to Morgan Stanley. The merger agreement also contains an election procedure allowing each Eaton Vance shareholder to seek all cash or all stock, subject to a proration and adjustment mechanism. “This transaction further advances our strategic transformation by continuing to add more fee-based revenues to complement our world-class investment banking and institutional securities franchise. With this move, Morgan Stanley Investment Management will manage about $1.2 trillion of assets, finally reaching Gorman’s goal for $1 trillion. Vance’s financial performance, (x) certain restrictions during the pendency of the acquisition that may impact Morgan Stanley’s or Eaton Vance’s ability to pursue certain business opportunities or strategic transactions, (xi) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or The deal marks Morgan Stanley's second multibillion-dollar acquisition this year. Search for news, funds, fund managers, sectors and asset classes. With the addition of Eaton Vance, Morgan Stanley will oversee $4.4 trillion of client assets and AUM across its Wealth Management and Investment Management segments.”. By acquiring Eaton Vance, it will join the club of $1 trillion money managers and bulk up in specific products where it is weaker, such as municipal bonds and sustainable investing. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words. Morgan Stanley's acquisition of asset manager Eaton Vance for $7 billion would allow the wirehouse's financial advisors to better customize and … agreement, Morgan Stanley is expected to acquire Eaton Vance Corp. 1585 Broadway Morgan Stanley Investment Management (MSIM) has $655bn in assets under management, while Eaton Vance has $507bn, giving the combined company about $1.2tn in assets. Bringing Eaton Vance’s leading brands and capabilities under Morgan Stanley creates a uniquely powerful set of investment solutions to serve both institutional and retail clients in the U.S. and internationally.”, “Eaton Vance brings strong brand recognition and high quality complementary platforms in key secular growth areas, providing numerous incremental opportunities to increase the reach of our asset management franchise and our value proposition for clients,” said Dan Simkowitz, Head of MSIM. Morgan Stanley (NYSE: MS) and Eaton (News - Alert). mediainquiries@morganstanley.com The acquisition will boost Morgan Stanley Investment Management’s (MSIM) AUM from $665bn to $1.2trn, with at least $5bn of combined revenues, the statement said. Eaton Vance shareholders will receive $28.25 per share in cash and 0.5833 Morgan Stanley shares for each share they hold, representing a 38% premium to Eaton’s closing price on Wednesday. Away from the excitement of ESG and direct indexing, Eaton Vance and MSIM also offer more traditional strategies, and there is some overlap here. Based on the $56.50 per share, the aggregate consideration paid to holders of Eaton Vance’s common stock will consist of approximately 50% cash and 50% Morgan Stanley common stock. We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments. Below, we take a closer look at Morgan Stanley’s acquisition of Eaton Vance, examining the reasoning behind the deal and what a combined company might look like. At Morgan Stanley, we lead with exceptional ideas. New York, NY 10036 . New York, NY 10036 Global institutions, leading hedge funds and industry innovators turn to Morgan Stanley for sales, trading and market-making services. Morgan Stanley is differentiated by the caliber of our diverse team. Morgan Stanley (MS) announced that they are planning to acquire Eaton Vance (EV) at a premium to the closing price on Wednesday. On October 8, 2020, Eaton Vance Corp. (Eaton Vance) and Morgan Stanley announced that they had entered into a definitive agreement under which Morgan Stanley will acquire Eaton Vance and its affiliates, including Eaton Vance Management, Parametric Portfolio Associates LLC (Parametric) and Calvert Research and Management (Calvert). However, that picture of outflows is misleading, as this data only relates to mutual funds and ETFs and Eaton Vance has a significant SMA and closed-end fund business that is not accounted for in these numbers. Eaton Vance’s Board of Directors and Voting Trustees believe this acquisition is in the best interests of our clients, … ‘Narrow-moat Morgan Stanley, though, has been actively seeking to push its asset-management unit above the $1 trillion mark, with CEO James Gorman alluding to the company’s 2009 sale of its Van Kampen fund operations to Invesco as a mistake.’. Its money management businesses now make up about 60% of revenue. Morgan Stanley has completed the purchase of Eaton Vance, a leading provider of advanced investment strategies and wealth management solutions, for approximately $7bn. Those are some of the questions that give me a little bit more concern, whereas the Parametric and Calvert side are immediately more complementary.’, ‘If we’re asking the question, you can be sure that the portfolio managers and all the analysts are asking the question: “Will I still have this fund? These risks, as well as other risks associated with the proposed acquisition, will be more fully discussed in the registration statement on Form S-4 that will be filed with the SEC in connection with the proposed acquisition. Eaton Vance is a market leader in key secular growth areas, including in individual separate accounts, customized investment solutions through Parametric, and responsible ESG investing through Calvert. Most affected could be Eaton … Morgan Stanley agreed to buy asset manager Eaton Vance days after closing its acquisition of E-Trade. Our board of directors and senior executives hold the belief that capital can and should benefit all of society. Morgan Stanley will pay Eaton shareholders $28.25 per share in cash and 0.5833x of Morgan Stanley common stock, representing a total consideration of approximately $56.50 … By financing the transaction with 50% cash, Morgan Stanley will utilize approximately 100bps of excess capital, and the Firm’s common equity tier 1 ratio is expected to remain approximately 300bps above the Firm’s stress capital buffer (SCB) requirement of 13.2%. We live that commitment through long-lasting partnerships, community-based delivery and engaging our best asset—Morgan Stanley employees. Eaton Vance is a well-established provider of investment strategies and wealth management solutions, boasting more than $500 billion in assets under management (AUM). The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2021 and at such time it is anticipated Eaton Vance will become a subsidiary of Morgan Stanley. Eaton Vance provides advanced investment strategies and wealth management solutions to forward-thinking investors around the world. Mergers such as these will always result in cost savings (some of which usually come via layoffs) and these two firms have said they are targeting savings of $150m, or 4% of their combined expenses, when the deal is complete. Eaton Vance closed at $60.65/share. Most of those flows ($119bn) have come over the last three years, particularly in the firm’s less profitable money market funds, but also in successful and more profitable growth funds such as Morgan Stanley Institutional Growth Portfolio (MSEQX) and Morgan Stanley Institutional Global Franchise Portfolio (MSFAX). ET, hosted by Morgan Stanley Chairman and CEO, James Gorman; Morgan Stanley CFO, Jonathan Pruzan; Morgan Stanley Head of Investment Management, Dan Simkowitz; and Eaton Vance Chairman and CEO, Thomas E. Faust, Jr. © 2021 Morgan Stanley. It was an issue quickly picked up on by commentators on Twitter, such as Phil Bak, founder and chief executive of Exponential ETFs, who posted: Of note: in the 21 page merger announcement deck, zero mention of Nextshares or ETMFs. To access the presentation, please click here, For media inquiries, send an email to Media Inquiries. The acquisition advances Morgan Stanley’s … Will my role change?” And that’s just an added distraction. Morgan Stanley. A conference call to discuss the announced transaction will be held today at 8:30 a.m. In the past decade, passive funds, including ETFs, have grown by a factor of seven, rising to $8.6tn from $1.3tn in assets, according to Morningstar. Morgan Stanley (NYSE: MS) and Eaton Vance Corp. (NYSE: EV) have entered into a definitive agreement under which Morgan Stanley will acquire Eaton Vance, a leading provider of advanced investment strategies and wealth management solutions with … Investor Relations: 1-212-762-8131 Funds giving back money include well-regarded offerings like the Eaton Vance Floating Rate fund and the Eaton Vance Atlanta SMID Cap fund. The acquisition of Eaton Vance, which manages $474.4bn of assets, advances the banking behemoth’s strategic transformation across three areas – institutional securities, wealth management and … Everything we do at Morgan Stanley is guided by our five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. All such forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in such forward-looking statements. For more information visit eatonvance.com. As a global financial services firm, Morgan Stanley is committed to technological innovation. Subject to the satisfaction of customary closing conditions, including receipt of necessary regulatory … The acquisition is subject to customary closing conditions, and is expected to close in the second quarter of 2021. For one, it’s the right size for a splashy acquisition. ‘I think there’s another underlying element where more firms are recognizing the need to pivot and have a consolidated platform for a one-stop shop for retail clients and advisors.’. Morgan Stanley agreed Thursday to buy investment management firm Eaton Vance for about $7 billion, the bank said in a statement. We look forward to this partnership.”. And these are already large firms, so the argument that suddenly these combined entities are going to have amazing new resources they didn’t have before, I can’t buy that argument here. Below, we take a closer look at Morgan Stanley’s acquisition of Eaton Vance, examining the reasoning behind the deal and what a combined company might look like.

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