Overall the Legg Mason Capital Management flows have remained strong. They have generally been decent. It has been principally on the institutional side and in institutional fund flows. On the retail side, we have not had much help and in fact it has been negative. In some cases the negative is not only coming from the Smith Barney, but from former Legg Mason brokers who have left and joined other firms and under the agreements, can not carry those funds with them. There has been liquidation in general in the retail side on capital management funds, which would be basically value trust more than any others. In CAM there were things we did not anticipate at least to the severity that they took place, liquidity in the front end. We anticipated it, just not quite as strong and as fast, but we did anticipate that there would be outflows for some time in the Citigroup, Smith Barney, whatever name you want to put on it, mutual funds. Most of the major national firms have over the last three or four years witnessed outflows, some of them earlier and have turned it around, others continue to have it in the national firms and that is to an extent the result of the difference in shifting the platforms around. What has happened is as you have gone to open platforms in the national firms, proprietary funds have suffered almost across the board or often across the board, over the last two, three years they have, and that has continued to take place in a number of fund channels. It is not unique to us, but we were expecting that to happen. We also expected it to happen to some extent in the SMA channel because they no longer are proprietary to the Smith Barney system. That has not surprised us. The negative flows have narrowed. We are hoping that that is a true long-term thing and we have hopes that during this year we will get to zero or even turn positive. We have had improvement in performance, and that improvement in performance we think will make a difference. We have a positive attitude, but this piece here would not and has not surprised us.

Is there anything specific to the fund rationalization in terms of outflows?

We have some, but it is too soon to answer that with any validity. We have had some and the fund rationalization has been a major factor in their losing proprietary fund assets that those people in those funds have been a seller of the fund and that is a bigger factor in our outflows than we realize. We are going to see that over the next couple of months. It has not helped them; they have had a lot of battles to fight that has been one of them. The fund rationalization will have positive effects. It will dramatically enhance their performance areas and which already have turned around nicely from everything that we can see. We are optimistic on that side that is an area we have been spending a lot of time and effort. We are happy with what is going on at Clear Bridge and what they are trying to do. We think moving forward that we could see some modest outflows from here, but feel constructive on the impact of the fund realignment. The most important thing that we believe is that we will have better focus, higher quality funds, and ultimately put better numbers on the board.

Can you quantify the outflows in the separately managed accounts and talk what style predominates there and whether you would also be shifting what you offer there or what you emphasize there?

We have been challenged on both the fund and SMA side on a consolidated basis. I would say that the most exciting thing that we have got going on in the SMA space is looking to, we have already seated and funded a new series of funds called the smash funds for western asset that we will be launching in April. We believe this will allow us to replicate Western’s flagship product and bring that to the retail network. We had great response to date and we are optimistic about our opportunities there.

Can you quantify the outflows from separately managed accounts and give a sense of the trend line there?

I can not quantify the outflows. We believe that the trend line is beginning to level out, but as you have seen in a number of different brokerage networks, they have been challenged with flows across the board and we have experienced the same thing.

In the Smith Barney channel given the type of the year that Value Trust had, are you trying to accelerate on introductions of other products, based on better performing institutional managers or even private capital management?

We are looking to bring more legacy managers into the Smith Barney channel and other channels as well. We have got a focused group of funds that we think give us the best opportunity to go in and raise assets and get the growth that we believe we can get in all the systems. We are working hard. The Dan Franz group has been out visiting with all the subs and we have been working closely with all the wholesalers in an effort to get them to become more knowledgeable about all the products. We believe that the third party channel away from Smith Barney will present us with some serious opportunities that will take some time. These things do not move as quickly as but the feedback that we are getting both internally amongst the subs and externally in these new systems that we are going out and presenting these products to have been positive.

Those numbers are a lot lower than you think they are. You all have seemed to believe that those flows are more dramatic than we think they are.

Overtime, would you expect if your equity business becomes more global for your tax rate to drop because some global competitors have low tax rates and yours is high considering how much your business is outside the US?

It is our goal, it is our focus. You should not see it going north. Part of the issue that we had to deal with is in the US states that the states where we have substantial operations and profits tend to be on the higher end. Between tax planning and expansion of business on a global basis, should improve that overtime. In the foreseeable, I would not be varying from the guidance as given. I do not think it is realistic that you are going to see that thing drop a percent or more in any of the next several quarters or beyond.

What is your asset level now?

28.5 billion.

Is there some potential earn out payment or greater ownership stake that you can take over the next year or two?

We have a payment that comes up in about a year.

Do the pension bills have any impact on the fixed income business?

Western has done a good job of paying close attention to the demands and desires of the marketplace, developing new products, new vehicles, and also the approach that they have in terms of integrating their investment team as well as their business in delivering products globally and really working with the entire investment organization across the globe. I think that has been meaningful in our ability to attract assets performance. We think the retail areas can provide some opportunities for Western where they have not been able to play before.

What the license in Japan potentially could do, what that allows you to do that you were not able to do before?

Previously we were not able to directly distribute products in Japan. We needed to go through another affiliated company and which presented some challenges, so this will allow Western now to deliver its products directly and most importantly the domestic Japanese Yen denominated products, which provide a fantastic opportunity for us. We have got a great team there, a good base of assets, in excess of $50 billion, so it will allow us to go out and get back in front of the institutional clients on the pension side that we really have not been able to go out and market to.