Eaton Vance Management has formed a cash management unit and has hired a slew of fund executives to help manage its new business.

Eaton Vance Institutional Cash Management Services will provide cash management services to institutional investors in the U.S. and internationally through customized separate accounts. In conjunction with the launch of ICMS, Eaton Vance has hired a team who formerly worked together managing institutional cash management businesses at Dwight Asset Management including John Donohue as Head of Institutional Cash Management Services; Robert Swidey, Risk Manager; Timothy Robey, Portfolio Manager; Jeffrey Boutin, credit analyst and Kevin Zimmerman, Director of Business Development.

Donohue will report to Thomas Luster, and Kathleen Gaffney, co-directors of Investment Grade Fixed Income.

Also joining ICMS as a portfolio manager will be Maria Cappellano, co-portfolio manager of Eaton Vance U.S. Government Money Market Fund and Eaton Vance's primary portfolio manager and trader for money market and short duration portfolios.

The ICMS unit will service approximately $3 billion in cash assets held across various Eaton Vance separate accounts and mutual funds.

In a statement, Thomas Faust, chairman and chief executive officer of Eaton Vance Corp., said this is "a particularly opportune time” to make a run at the institutional cash management business because of "Large corporate cash balances, dislocation in the institutional money fund business and a thirst for yield in a low rate environment create demand for new cash management solutions.”

Eaton Vance and its affiliates managed $238.4 billion in assets as of December 31, 2012.

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