Barry Bilson: The current pipeline is strong, maybe not at an all-time high but well above the average relative to last year.

Robert Lee (KBW): In Smith Barney and Citi, where are you are seeing the real outflows?

Chip Mason: We have troughed the outflows on the mutual funds side. The numbers do appear on the mutual funds side to have settled in a pattern that it feats to grow. In the separate account area, the SMA, those flows have continued and might be up a bit.

In the Smith Barney product, you see a wider outflow on the product that they had because they are purchasing more of the newer products that are coming in. So you are not getting incoming flows.

As the SMA platforms broaden and they have more new people on the platform, the platform that was Smith Barney’s which is now Clearbridge is not getting the preferred flows that they did before.

Robert Lee (KBW): On Permal, what was the size of the contingent payment coming up?

Chip Mason: It is $240 million and is paid between November 1 and November 30.

Cynthia Mayer (Merrill Lynch): Any update on the search for an international equity firm?

Chip Mason: We are underweighted on the international equity side and are going to continue our quest on the equity side. It is part of our long-term plan to be moving in that direction. Brandywine has over $10 billion in international equity product and their bond funds which are now $25 billion to $30 billion are in that direction.

Prashant Bhatia (Citigroup): What are you seeing from the new advisory relationships?

Chip Mason: These are brokers and we do this on a 12-month cycle, i.e. if somebody does not put a ticket in for 12 months they go off the list. But every time a broker drops a ticket in a 12-month cycle they have used our product and we record that as a new advisor.

Prashant Bhatia (Citigroup): Those new tickets are for what type of product?

Chip Mason: It is across the board. We are trying to see if there is any trending to it, but it is not significant enough in any given area. We did get a fair amount of tickets on the Western funds because they had the numbers and it gave the broker a second place to be putting money. Some of the funds that are performing well are beginning to see tickets.

Prashant Bhatia (Citigroup): How should we interpret the share repurchases?

Chip Mason: We can not be buying shares and making a major acquisition because that would be double leverage meaning we would be borrowing on the one side and buying shares.

Our share repurchase program, which the board is now comfortable with, is not going to speed up appreciably. The board’s comfort level will go up as we begin to pay the debt down. We still have a $240 million payment to Permal in November and we have $420 million of debt coming due in June.

When we make an acquisition, it would have to be $1 billion or more because it would not move the needle. If we did a smaller manager and it was $300 million, we would not see it in earnings for quite some time.

Prashant Bhatia (Citigroup): On the European acquisition, are you comfortable doing an acquisition before getting a CEO in place?

Chip Mason: The company you are going to acquire might hesitate because they might want to know who the new CEO is going to be. In our history up until we did Citi, we never did an integration of any consequence, we just owned the company. We do not envision us doing anything that would cause any internal issues in terms of having to do systems.

Michael Hecht (Banc of America Securities): What was the equity flows distribution among the divisions and how much was offset by inflows into Royce and Brandywine and Permal?

Chip Mason: They are even, though Clearbridge is not the largest. We listed them as equity outflows of $2 billion though the whole outflow was $3 billion because the other $1 billion related to a company that went to an open platform.