Good morning. My name is Chris and I'll be your conference operator today. At this time, I would like to welcome everyone to the Eaton Vance Corp First Fiscal Quarter Earnings Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. Dan Cataldo, Treasurer. You may begin your conference. Daniel C. Cataldo - Treasurer & Head-Investor Relations: Thank you and good morning and welcome to our 2016 fiscal first quarter earnings call and webcast. Joining me this morning are Tom Faust, Chairman and CEO of Eaton Vance; and Laurie Hylton, our CFO. We will first comment on the quarter and then we will take your questions. The full earnings release and charts we will refer to during the call are available on our website, eatonvance.com, under the heading Press Releases. Today's presentation contains forward-looking statements about our business and financial results. The actual results may differ materially from those projected due to risks and uncertainties in our business, including but not limited to those discussed in our SEC filings. These filings, including our 2015 Annual Report and 10-K, are available on our website or on request at no charge. I'll now turn the call over to Tom. Thomas E. Faust - Chairman, President & Chief Executive Officer: Good morning. In our first quarter, we were reminded once again that the business of investing exposes both clients and investment managers to market risk. Over the course of the quarter, market price declines lowered our managed assets by $14.1 billion or 5% more than offsetting the quarter's $5.3 billion of consolidated net inflows. Principally reflecting adverse market effects, our first quarter revenue fell 7% from the first quarter of fiscal 2015 and 3% sequentially.…

The first question is from Dan Fannon with Jefferies. Your line is open.

Thanks. Good morning. I guess, Laurie, I'd be first just on the expenses. I get the 37% comp for 2Q, just want to clarify that that represents like a mark of AUM as of yesterday or how that represents the current AUM? And then how you're thinking about maybe the NextShares spending into next year or into this year? Laurie G. Hylton - Chief Financial & Accounting Officer, VP: Yeah. In terms of the comp, we are looking at that in relation to the assets that we came out of at the end of the quarter assuming flat market. Now, obviously, if markets continue to be volatile, that could ratchet up. But approximately in terms of our compensation, about 40% of it is variable, 60% fixed. So, I think the 37% as it looks today, looks like a pretty good number for the second quarter, but, again, things might change. In terms of our NextShares spend, we were a little bit lighter this quarter. I would anticipate in the first quarter and the second quarter, we may be ramping up a little bit. I think we had given previous guidance that we anticipated our overall spend in 2016 would probably be in the $8 million to $10 million range. I don't think that we're moving off of that at this point. I'm looking at Tom, just making sure he's nodding his head. Thomas E. Faust - Chairman, President & Chief Executive Officer: Yeah. I would say, yes. If there's any change of significance from the current run rate level, it would likely reflect significant progress with a distribution partner where we're contributing or helping them in their implementation cost. So that would be the only driver, but even there we don't see a major change from that, or we don't see a significant risk of change from the indicated guidance.

Great. And I guess as a follow-up just on that, can you talk about the conversations with the broker-dealer community? I assume the macro environment is not helping with that. But is there interest but just a matter of the dollar amount in expense or timing, I guess? Can you talk about what some of the pushback might be you're hearing from that segment? Thomas E. Faust - Chairman, President & Chief Executive Officer: It's primarily priorities, resources, uncertainty, particularly related to the DOL initiative. We argue and I think this is right that, on balance, a world that is more tilted towards advisory solutions than brokerage solutions, which is likely the direction of the DOL initiative, is clearly favorable for NextShares. The uncertainty as to the effect of that and certainly as to the technology requirements of that is a somewhat chilling factor in NextShares. So, we've had major broker-dealers that say we find this interesting, but we really need to get our hands around this DOL initiative, what's going to be required both in terms of the rules themselves as well as the perhaps systems and business modifications that will flow from that. We need to get our hands around that before we do something that we view as discretionary. The DOL affects their core business every day. Arguably, this is an add-on. This is something new that they don't necessarily need to do. I would say in terms of our – more broadly, the conversations, I think there's a significant change that we expect to happen when we have a product in the market. I think my view was that that would not be all that significant. We've known this was going to happen. We don't expect any surprises. But there are significant constituencies out there in the broker-dealer world that where this is a big deal. The fact that we will have funds that are demonstrated to trade and to perform and they can watch those and see how they perform every day, a lot of the questions, a lot of the mystery of NextShares get taken out by when we're in the marketplace, which starts at the end of this week. So, we're not hearing objections, people that say this is a bad idea, I don't want to do this. What we're hearing overwhelmingly is, interesting concept, let's see how this develops, let's see how this fits into our timeframe. But we are – while saying that, I do want to reemphasize, we are making significant progress with major broker-dealers from all three major channels. And our view, which I think is right, is that you get one major in each category, it makes it much easier for others in that category to want to follow. They'll have business reasons, maybe even a business imperative to want to come in if one of their closest competitors is seeing any kind of movement in their business toward NextShares.

Great. Thank you.

The next question is from Patrick Davitt with Autonomous. Your line is open.

Hi. Thanks for taking the question. That was most of mine, actually. But the – I'm curious on the repurchase, looks like it ticked down a little bit and the price has obviously come down quite a bit. If you feel like there are any cash needs be it seeding NextShares or other seeding needs that could keep it at a lower rate against a much lower share price? Laurie G. Hylton - Chief Financial & Accounting Officer, VP: No. At this point, I think that we're very comfortable with our cash position and with our ability to continue to generate cash from operations. We don't generally give any guidance on what our intention is in terms of repurchases for the quarter outside of saying that we intend to be in the marketplace. So we're watching the markets like everyone else is. But at this point, we don't see any particular cash constraints that would keep us out of the market.

Great. Thanks.

The next question is from Robert Lee with KBW. Your line is open. Andrew McLaughlin - Keefe, Bruyette & Woods, Inc.: Hi. This is actually Andy McLaughlin for Rob Lee. Thanks for taking my question. I know you guys said you were going to expand the London office and we just wanted to kind of get some idea around timing and amount of those expenses going forward? Thomas E. Faust - Chairman, President & Chief Executive Officer: Those are pretty well reflected in the first quarter. The big hiring initiative there was in connection with our equity team that's now based in London, then we have one person in Tokyo and there are a handful of people in Boston connected to that team as well. That's done. The people there that were hired in that group, I think the last ones came first week of November, something like that. So, think of those numbers as effectively baked in. I did mention that we're taking some new space – expanded space in London, but that's a relatively small item. I think I said we're expanding by two-thirds. That means we're going to stay in the same building. We're going from half a floor or thereabouts to or two-thirds of a floor to a full floor. So, it's not enough to be meaningful. But it's a significant initiative for us that we are optimistic that we're going to be in a position to bring in international assets that will produce revenues to offset that incremental spending. I was over there last week and quite encouraged by the pipeline and the level of activity. Primarily, today, on the fixed income side, I'd say particularly high yield, but also we're starting to see some interest in equity products also as well. But, I would…

The next question is from Michael Kim with Sandler O'Neill. Your line is open. Michael S. Kim - Sandler O'Neill & Partners LP: Hey, guys. Good morning. First, maybe just to come back to the rollout for NextShares. Just wondering if you could maybe give us an update as it relates to seed capital needs going forward as you bring new funds to market? Any color there would be helpful. Thomas E. Faust - Chairman, President & Chief Executive Officer: We're – couple of answers. One answer from an exchange perspective, the amount of capital is quite minimum. Is it 2 – what is it, $1 million or something? Daniel C. Cataldo - Treasurer & Head-Investor Relations: Two Creation Units. Thomas E. Faust - Chairman, President & Chief Executive Officer: Two Creation Units, which is $1 million, so not significant. We do expect to have larger positions than that but from where we sit today, we don't see the need to build materially large positions in NextShares compared to our current seed capital portfolio which is – how much? Daniel C. Cataldo - Treasurer & Head-Investor Relations: $268 million. Laurie G. Hylton - Chief Financial & Accounting Officer, VP: Yeah. Thomas E. Faust - Chairman, President & Chief Executive Officer: $268 million. So we don't think it will likely that it will move the needle on that. Sometimes a driver of seed capital needs is minimum investment requirements that a particular broker-dealer may impose on a new strategy. For the most part, we would expect and hope that those requirements wouldn't apply to NextShares because these are not new strategies. In all cases, these are established strategies where we're just applying that same strategy in a lower cost more efficient vehicle, and we would expect in our work with broker-dealers…

The next question is from Michael Carrier with Bank of America. Your line is open.

Thank you and good morning. This is Adam Beatty, in for Mike. We wanted to get your thoughts on regulatory attention to fund composition and derivative exposure, particularly, I guess with respect to some of the overlay and factor-based strategies. Do you expect some additional scrutiny in those areas? And how would you manage that? Thanks. Thomas E. Faust - Chairman, President & Chief Executive Officer: So I think as you're referring to, there was an SEC proposal that came out late last year that would impose additional regulations and new limitations for mutual funds, or I should say, I believe its investment comp – registered investment companies in their use of different kinds of derivative. We have a number of strategies that are fairly intensive users of derivatives. Those fall generally into two categories: one is we have primarily on the closed-end fund side, we have equity funds that write call options in some cases in single stock options, in other cases it's index options, in some cases, they write options in connection with also selling or in some cases buying put options. So we have strategies that are primarily equity funds that have an options overlay. That's sort of one category of derivative intensive product that we offer in a registered investment fund format. The other broad category of products we have is in our Global Macro area where often the most efficient way to gain a desired market exposure is through the derivatives market. So a credit default swap or a forward position in a currency would probably be the two most typical ways of gaining exposure. How those – how this affects those businesses – how these proposed regulations affect these businesses is still up in the air. These regulations are being proposed. Eaton Vance is…

Got it. Thank you, Tom. I appreciate the detail. And then, in particular on the factor-based strategies, it's interesting, if I hear you right, that they're not only customized but somewhat dynamic in terms of the allocation or exposure. The question is how close to the end use or retail investor would you see those types of dynamic decisions being made? Is it something that should always be intermediated by an FA or others, or would you see it being suitable in perhaps a robo-advisor context? Thank you. Thomas E. Faust - Chairman, President & Chief Executive Officer: Yeah. So, we're not in the robo-advisor business. We do offer these custom beta strategies on a retail basis through relationships we have with broker/dealers, financial advisors generally with a minimum investment of about $250,000 in the strategy. So, we're not today placing these tools in the hands directly of retail investors that not necessarily would be a bad thing, but that's not our focus today. The range of customization that we offer down to the client or advisor level does vary by firm. In some cases, a firm, even some that use these strategies quite actively, give a limited ability for a financial advisor to choose a custom solution. While these are customizable, sometimes that customization sort of stops at the firm level. In other cases, the firm will allow customization down to the advisor group level within agreed upon constraints. But in no case currently do we provide customization down to the individual client level, at least in terms of retail clients.

Interesting. Thank you for taking our questions.

The next question is from Ken Worthington with JPMorgan. Your line is open.

Good morning. This is Will Cuddy standing in for Ken. Thank you for taking our questions. So, a top topic in the news is a potential British exit from the EU. And you've mentioned the growth in your London office. How could like a British exit from the EU potentially affect your International businesses? Thomas E. Faust - Chairman, President & Chief Executive Officer: I guess, first, I would say not materially. We don't have a big International business. I was in London last week, and this is certainly a topic of discussion. I can pass on what I heard though the impact on our business rounds to zero because we don't have a big base of operations in the UK. We are moving from two-thirds of a floor to a full floor in a building there. But I think the concern there in the financial sector is that London could lose its status as a financial center of Europe, which is maybe somewhat arguable today, but probably not something that the French or the Germans are happy about. And my guess is that, if Britain is not part of the EU going forward that that could change with implications not only for markets but also for how and where investment managers like Eaton Vance staff to serve clients and meet market opportunities in Europe. Because we're really at the beginning stage of our development, we don't have a particular commitment to UK. If the new center of Europe is in Frankfurt or Paris or wherever, it wouldn't be a significant disruption to our business to pick up and move effectively. I think the bigger concern – the more likely concern, the most significant concern for Eaton Vance is just what does it do to the markets. We're in the business where our revenues go up or down with the markets. And to the extent that the possibility of a British exit from the EU is weighing on markets, the primary financial impact of that on Eaton Vance is that if that weighing on the markets cause the market prices to go down, our revenues go down. That's the way it works in the asset management business. So I would put it in the same category as other things that are bringing uncertainty and adding risk to global financial markets today is much more significant to us than the specifics of how we address markets in Europe.

Okay. Thank you. So tying into Adam's question earlier with the custom beta and robo-advisors. A big pitch from robo-advisors have been the ability to tax manage assets. Do you see that as a potential threat or opportunity for you? And would you see a potential for partnering with one of these platforms? Thomas E. Faust - Chairman, President & Chief Executive Officer: Certainly something we're interested in. I don't believe it's accurate that today a core offering of most robo-advisors is individual holdings of securities and lot level tax management. I believe the – my understanding is the predominant model is that they invest in ETFs primarily and perhaps other pool vehicles as their primary way of gaining market exposure. I'm familiar that Wealthfront has an offering with individual securities. So I believe with that exception, the robo-advisor world is essentially a world of investing in ETFs and other fund vehicles as opposed to holding direct investments in securities primarily. Clearly, there's an interest here and a potential overlap with our capabilities. I don't think there's great market data on this, but we believe it's highly likely that our affiliate, Parametric, is today the largest player in what I'll call the tax-managed separate account business. We have the most – the largest account base. I'm sure we would claim that the most sophisticated technology and potentially could consider ramping that up to potentially bring down minimum investments and service clients through robo-advisors or other means on a broader basis than we're doing today. So I don't see it as a threat to our business, but I do see it as potentially an opportunity. And we're certainly open to discussions on additional ways to gain access for this product suite, which, as we've talked about in previous quarters and as I emphasized in my remarks today, continues to be a growing part of our business and something that really sets us apart from what I'll call other traditional active managers.

Great. Thank you for taking our questions.

The next question is from Chris Shutler with William Blair. Your line is open. Andrew Nicholas - William Blair & Co. LLC: Hi. Thanks for taking my questions. This is actually Andrew Nicholas filling in for Chris. Just one question. You referred to additional NextShares product launches in March. I just want to confirm first that those would all be Eaton Vance products. And then, in any case, if there is an updated timeline for the rollout of other licensee funds. Thomas E. Faust - Chairman, President & Chief Executive Officer: Yeah. So to-date the only fund sponsor that has approved fund registration statements is Eaton Vance. So, any near-term launches would be of Eaton Vance sponsored products. A key milestone for other licensees, the other 11 fund sponsors that have exemptive relief to offer NextShares and have entered into preliminary agreements with our affiliate to permit that, a key milestone for them was when Eaton Vance got our registration statement approvals in December. Because, by design, and I would say, by design from our end as well as from the SEC, that was intended to be a template that other fund sponsors could use. So, in other words, the language that was agreed to and negotiated by us and the SEC, that essentially can be plugged into registration statements for other fund sponsors. Certainly, one of our objectives including 18 registration statements in that initial filing was to make sure that we essentially covered all the bases in terms of asset classes and issues that might arise to make it easier for follow-on managers to expedite the process of their own – getting their own registration statement approval. We are certainly in contact with other fund companies. We understand that they are making progress towards filing registration statements relatively soon, but we can't – we obviously can't control the timing of that. But I would say here again, as with our conversations with broker-dealers and other fund companies, the fact that we have a product live with the market is a stimulus for action by the fund companies that have already entered into agreements with us and are trying to make decisions about the timing of their own launches (57:10). But again, also important to them is what does the distribution landscape look like. They're happy for the test phase of the development of NextShares to be dominated by Eaton Vance. They likely are primarily interested in the commercial development, which requires a broader range of distribution outlets than we have today. But we expect to see registrations filed by – for NextShares Fund by other sponsors in the coming weeks. Andrew Nicholas - William Blair & Co. LLC: Thank you very much. That's all I had.

Ladies and gentlemen, we have reached our time limit for any further questions, and I will now turn the call back over the Mr. Cataldo for any closing remarks. Daniel C. Cataldo - Treasurer & Head-Investor Relations: Great. Thank you for joining us and thank you for your continued interest in Eaton Vance and we look forward to reporting back to you in a few months for our second fiscal quarter end. Good-bye.

This concludes today's conference call. You may now disconnect.