Eaton Vance Corp’s revenue increased nearly $57 million in fiscal year 2001, up 13% from 2000, the firm reported today. At the same time, operating expenses increased by more than $48 million, or 20%, due to increased fund marketing costs, higher mutual fund service fee expenses and higher compensation costs.

Eaton Vance’s revenue for the third quarter 2001 was up 7% from 2000, excluding revenue generated by the firm’s recent acquisitions, Atlanta Capital Management and Fox Asset Management. Including that data, third quarter revenue increase by more than 10%.

Total assets under management stood at $56.6 billion at the end of October 2001, a 15% increase from the same time last year. Excluding the two asset management acquisitions, however, assets were $48.3 billion, or down 2%. Assets in equity funds decreased less than 2% since last year, while fixed income and money market fund assets rose by 7% and 13%, respectively.

"Eaton Vance had a very good year in a difficult market," said James Hawkes, CEO of Eaton Vance, in a statement. "Excluding the $7.9 billion of assets added on Sept. 30, 2001 by the acquisitions of Atlanta Capital and Fox Asset Management, total assets under management were down only 2 percent and equity assets were off only 3 percent in a period when the S&P 500 index declined 25 percent and the Nasdaq declined 50 percent. Eaton Vance's strong performance resulted from positive net asset flows in all asset classes and outstanding relative investment performance."

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