When you might be officially launching open-end Western Funds?

We are in the process of doing that. There have been wholesalers, brokers, top producers at Western’s offices on a weekly basis for the last three months. We have been spending a lot of time with Don Carl’s team to make sure they are as knowledgeable as they possibly can be. Some of the non-Smith Barney distribution platforms that we have been in front of are extremely excited about the opportunity to add a fund family that has been scares in the past. At last count we have had somewhere in the area of 200 office visits just in the last quarter. It takes time, but we have got a real good base of activity that we built and we are hoping to see more and more happen that each and every month. We need to continue to put up performance. The performance of the Core Plus Fund is certainly going to help our efforts there. Everybody from the distribution channel through Legg Mason to Western asset is hopeful in this area.

Can you talk about the opportunity to leverage some of Western’s relationships across the firm?

It is an opportunity. We have had a different approach, different model than some other organizations. We have always believed that on the institutional side of thing that the subs were benefited by having their own dedicate marketing client service resources. We felt that was important because they are much more knowledgeable and effective at communicating their products and their strategies to their clients, so the folks at Western are experts on fixed income products. The folks at Batterymarch are experts on quantitative equity products. Bill Miller and his team are experts in an incredibly knowledgeable about Bill’s style and approach. We think that far-out weighs what we may give up in terms of cross selling. That is not to say though that we do not communicate among the subs, we do and it is an area that we would like to do more of and it is an area where we can continue to do better. I would say that to date we found that that specialization and the dedicated resources for each of those subs certainly on the institutional level has been much more meaningful.

33.5 is your adjusted margin this quarter. The revenue is up, the assets are up, equity markets were up, but the margin is flat or even down if you pull out merchant banking gains. Could you reconcile that?

The mix of business this quarter versus last quarter on balance is similar. One dynamic, which you did not mention in your metric was the non-comp, non-distribution fixed cost spike. There was a 13% jump there. That is not something we envision continuing to jump and hope to f cap in overtime and it is going to be at least a couple of few quarters to get that thing to ease in the other direction. The other key which we have touched on repeatedly and is worth a quick reminder is that we have not had a stretch with substantial retail and equity flow. If we restored the mix of our business similar to before, you will see expansion in that margin, but concurrent with the startup of the new organization and the related startup costs that go with it, we could say it is an investment in the future. The fact is we have not hesitated to look where we need to get and put the efforts in the cost toward on the front end and not just perpetuate what formally was. But if we can start getting some juice back into the equity space, which we fundamentally have not had over the past year, you are going to see that margin expand as well.