Closed-end fund shops like Eaton Vance could historically count on steady asset-based fees and additional profits from issuing auction-rate preferred shares. But due to the problems in that market, the companys first quarter revenue and fees have fallen sharply, dragging down its net income 57%.
In the quarter ended Jan. 31, net income was $24.7 million, or 21 cents a share, down from $57.9 million, or 46 cents a share, a year earlier.
Revenue fell 28% to $209.5 million. The biggest drain on revenue was a 43% decline in distribution and underwriter fees; investment fees fell 24%.