Mark R. Fetting: Legg Mason, Inc. shareholder would cover up to the full amount of regular revenue share arrangement.

Prashant Bhatia: The equity outflows of about $11 billion, looks like $2.5 billion were from mutual funds. Elaborate where the remaining $8.5 billion of outflows were from on an entity level?

Mark R. Fetting: There are three entities, Capital Management, Private Capital and ClearBridge. And it somewhat evenly distributed and if you look at it from a trend standpoint, there has been a modest reduction in the level of outflow in each of the three managers.

William R. Katz: Did you say credit support agreements are in place till March of 2009?

Charles J. Daley: That is correct.

William R. Katz: You are looking to enhance profit margins, that is why you have given the structure of the organization. What will you be doing and what type of hedge or savings there could be?

Charles J. Daley: We are looking across the company expenses and they are in the service areas of distribution, option technology and other functional shared services. The extended revenue share was protected by the basic revenue share and investment affiliates are not.

William R. Katz: On the fixed income business, is there anything the tactical issue or the performance and the SIV overhang from fixed income. Elaborate where we might be in terms of the fixed income cycle?

Mark R. Fetting: Yes, internationally we see good opportunities subject to working through some performance challenges and continue to work closely and with excellent results working with clients in retention. Brandywine also had a strong global fixed income capability.

Unidentified Analyst: Discuss on trends you are seeing in the fund to hedge fund space and an update on Permal''s assets under management and the flows and performance?

Mark R. Fetting: In terms of the trends in the business, growth tempered as measured by flows coming into the business. Permal continues to do quite well on a relative basis. There would be the team flows, in a $1 billion range or monthly basis and now in the $300 million to $400 million range positive and yet they continue to gain share in that business.

Unidentified Analyst: What the retail versus institutional mix is for the business?

Mark R. Fetting: That continues to be the dominant having the growth they are seeing on the institutional side is very appealing and that is the area in the U.S. where they are seeing their best traction.

Unidentified Analyst: On SIV exposure, what drove the charges in the second quarter was this determined on cash flow modeling or on a comparable transaction basis?

Mark R. Fetting: We have made a policy decision that in this kind of an environment trying to be fair to the shareholders across the board that if we can cover all the securities, it would make sense. And that led to the charge of half the level of the prior quarter.

Unidentified Analyst: What drove the outflows in fixed income, long term fixed income products in terms of the type of product, was it more rate driven products and between investor type U.S. versus overseas?

Mark R. Fetting: Some of the outflow was in managers who were getting inflows on the fixed side that would be Permal and Brandywine, that level of inflow was reduced as a result of market condition. The Western piece is evenly divided across U.S. and international and tends to be in core plus strategies.

Craig Siegenthaler: On the SIV and asset backed commercial paper exposure and the numbers you quoted that is core value or is that net after impairments?

Charles J. Daley, Jr: That is part of value, pre mark-to-market.

Craig Siegenthaler: What is owned on the balance sheet and what is owned in the funds?