Table of Contents. Section I: Executive Summary Section II: Introduction and Methodology... 13

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1 Table of Contents Section I: Executive Summary... 8 Section II: Introduction and Methodology Section III: How Advisors Approach Portfolio Construction A. How do advisors make investment decisions? B. What sources influence advisors investment decisions? C. How do advisors use model portfolios to guide investment decisions? D. How reliant are advisors on style boxes for investment decisions? E. Which investment vehicles do advisors typically use to construct portfolios? Section IV: The Yin and Yang for Advisors Active vs. Passive Investing A. How do advisors differ in their use of active vs. passively managed investments? B. How is use of active and passive investments changing? C. How do advisors employ passive investments relative to actively managed solutions? 28 D. Which factors are driving advisors to use passively managed solutions? E. For which investment categories do advisors prefer to use passively managed solutions relative to actively managed investments? F. How is advisor use of different ways to access passive and active management likely to change in the next 12 months? G. How interested are advisors in additional support related to using passively managed solutions? H. How do advisors who focus primarily on active management differ from those more oriented to passive management? I. How do advisors who expect to increase use of passive management differ from other advisors? Section V: Advisors and Actively Managed ETFs A. For which investment categories do advisors have greatest interest in using actively managed ETFS? B. What factors are most important to increase advisor consideration and use of actively managed ETFs? C. How much interest do advisors have in the new Eaton Vance approach to actively managed exchange traded products?... 46

2 D. Which advisors have the greatest interest in the new Eaton Vance approach to actively managed exchange traded products? E. What types of support for actively managed ETFs are most important to advisors? F. What forms of content for actively managed ETFs are most important to advisors? Section VI: Advisors and Smart Beta Solutions A. How familiar and experienced are advisors with Smart beta solutions? B. Do advisors perceive Smart Beta as active or passive management? C. What approach to Smart Beta is of most interest to advisors? Section VII: Advisors and Liquid Alternatives A. How prevalent is the use of liquid alternatives? B. How much do advisors invest in liquid alternatives? C. Which vehicles do advisors use most often to access liquid alternatives? D. Which liquid alternative strategies are advisors most familiar with and which do they use most often? E. Which benefits are most important for advisors using liquid alternatives? F. How is advisors use of liquid alternatives likely to change? G. How is advisors use of different liquid alternative strategies likely to change? H. Which factors do advisors focus on to select the specific liquid alternatives they use?80 Section VIII: Profile of Survey Respondents Section IX: Outlook and Implications... 85

3 List of Exhibits Exhibit 1: How Advisors Typically Make Investment Decisions Exhibit 2: How Advisors Typically Make Investment Decisions by Channel Exhibit 3: Sources Influencing Advisors Investment Decisions Exhibit 4: Sources with Significant Influence on Advisors Investment Decisions by Channel Exhibit 5: Extent Advisors Rely on Model Portfolios in Managing Investments Exhibit 6: Extent Advisors Rely Heavily on Model Portfolios in Managing Investments by Channel Exhibit 7: Use of Style Boxes vs. Unconstrained Approach Exhibit 8: Use of Style Boxes vs. Unconstrained Approach by Channel Exhibit 9: Extent of Use of Investment Vehicles in Constructing Portfolios Exhibit 10: Significant Use of Investment Vehicles in Constructing Portfolios by Channel Exhibit 11: Advisors Use of Actively Managed vs. Passively Managed Investments Exhibit 12: Advisors Use of Actively Managed vs. Passively Managed Investments by Channel Exhibit 13: Major Reasons Advisors Do Not Use Passively Managed Investments Exhibit 14: Likelihood to Begin Use of Passively Managed Investments in Next 12 Months Exhibit 15: Change in Relative Use of Actively Managed and Passively Managed Solutions in Past 12 Months27 Exhibit 16: Change in Relative Use of Actively Managed and Passively Managed Solutions in Past 12 Months by Channel Exhibit 17: Use of Passively Managed Solutions Limited vs. Broad Focus Exhibit 18: Use of Passively Managed Solutions by Channel Limited vs. Broad Focus Exhibit 19: Use of Passively Managed Solutions Tactical vs. Strategic Decision Exhibit 20: Use of Passively Managed Solutions by Channel Tactical vs. Strategic Decision Exhibit 21: Most Important Factors in Use of Passively Managed Solutions Exhibit 22: Most Important Factors in Use of Passively Managed Solutions by Channel Exhibit 23: Preference for Passively Managed Solutions by Equity Categories Exhibit 24: Preference for Passively Managed Solutions by Fixed Income Categories Exhibit 25: Preference for Passively Managed Solutions by Equity Categories by Channel Exhibit 26: Preference for Passively Managed Solutions by Fixed Income Categories by Channel Exhibit 27: Expected Change in Use of Various Actively Managed and Passively Managed Vehicles in Next 12 Months... 36

4 Exhibit 28: Expected Increase in Use of Various Actively Managed and Passively Managed Vehicles in Next 12 Months by Channel Exhibit 29: Interest in Support for Constructing Portfolios with Passively Managed Solutions Exhibit 30: Significant Interest in Support for Constructing Portfolios with Passively Managed Solutions by Channel Exhibit 31: Extent of Advisor Interest in Using Actively Managed ETFs - Equity Categories Exhibit 32: Extent of Advisor Interest in Using Actively Managed ETFs Fixed Income Categories Exhibit 33: Very Interested in Using Actively Managed ETFs by Channel - Equity Categories Exhibit 34: Very Interested in Using Actively Managed ETFs by Channel Fixed Income Categories Exhibit 35: Most Important Factors to Increase Consideration and Use of Active ETFs Exhibit 36: Most Important Factors to Increase Consideration and Use of Active ETFs by Channel Exhibit 37: Interest and Potential Use of Eaton Vance ETMA Concept Exhibit 38: Interest and Potential Use of Eaton Vance ETMA Concept by Channel Exhibit 39: Types of Support/Training for Active ETFs Most Important to Advisors Exhibit 40: Types of Support/Training for Active ETFs Most Important to Advisors by Channel Exhibit 41: Forms of Content for Active ETFs Most Important to Advisors Exhibit 42: Forms of Content for Active ETFs Most Important to Advisors by Channel Exhibit 43: Familiarity and Experience in Using Smart Beta Solutions Exhibit 44: Familiarity and Experience in Using Smart Beta Solutions by Channel Exhibit 45: Perceptions of Smart Beta Active vs. Passive Exhibit 46: Perceptions of Smart Beta by Channel Active vs. Passive Exhibit 47: Advisor Interest in Smart Beta Approaches Exhibit 48: Advisor Interest in Smart Beta Approaches by Channel Exhibit 49: Advisors Investing in Liquid Alternatives Overall and By Channel Exhibit 50: Advisors Use of Liquid Alternatives within Client Base Exhibit 51: Advisors Use of Liquid Alternatives within Client Base by Channel Exhibit 52: Amount Advisors Manage in Liquid Alternatives Exhibit 53: Amount Advisors Manage in Liquid Alternatives by Channel Exhibit 54: Percent of Total Assets Managed in Liquid Alternatives Exhibit 55: Percent of Total Assets Managed in Liquid Alternatives by Channel Exhibit 56: Vehicles Advisors Use to Invest in Liquid Alternatives... 64

5 Exhibit 57: Percentage of Total Liquid Alternative Assets Managed by Vehicle Exhibit 58: Vehicles Advisors Use to Invest in Liquid Alternatives by Channel Exhibit 59: Percentage of Liquid Alternatives in Multi-Strategy Products Exhibit 60: Percentage of Liquid Alternatives in Multi-Strategy Products by Channel Exhibit 61: Familiarity and Use of Leading Liquid Alternative Strategies Exhibit 62: Familiarity and Use of Absolute Return by Channel Exhibit 63: Familiarity and Use of Bear Market by Channel Exhibit 64: Familiarity and Use of Commodities/Natural Resources by Channel Exhibit 65: Familiarity and Use of Hedged Equity by Channel Exhibit 66: Familiarity and Use of Leveraged by Channel Exhibit 67: Familiarity and Use of Long/Short by Channel Exhibit 68: Familiarity and Use of Macro Global by Channel Exhibit 69: Familiarity and Use of Managed Futures by Channel Exhibit 70: Familiarity and Use of Managed Volatility by Channel Exhibit 71: Familiarity and Use of Market Neutral by Channel Exhibit 72: Familiarity and Use of Multi-Strategy by Channel Exhibit 73: Familiarity and Use of Private Equity/VC by Channel Exhibit 74: Familiarity and Use of Real Estate by Channel Exhibit 75: Familiarity and Use of Strategic Income by Channel Exhibit 76: Factors Important to Advisors in Selecting Liquid Alternatives Exhibit 77: Factors Important to Advisors in Selecting Liquid Alternatives by Channel Exhibit 78: Expected Change in Use of Liquid Alternatives in Next 12 Months Exhibit 79: Expected Increase in Use of Liquid Alternatives in Next 12 Months by Channel Exhibit 80: Expected Change in Use of Liquid Alternative Strategies Exhibit 81: Expected Increase in Use Liquid Alternative Strategies Exhibit 82: Important Factors in Selecting Specific Liquid Alternatives Exhibit 83: Important Factors in Selecting Specific Liquid Alternatives by Channel Exhibit 84: Profile of Advisors by Key Characteristics... 82