Question-and-Answer Session
Operator
The first question comes from Douglas Sipkin - Wachovia.
Douglas Sipkin - Wachovia
Just two questions, one and I apologize if you gave it already. I know you provided the large cap value flows for the year. Did you provide the large cap value assets?
Martin Cohen
We did not mention that, but I think we can tell you that.
Douglas Sipkin - Wachovia
And then secondly on top of that, do you know more specifically when Morningstar is going to officially rate the fund?
Martin Cohen
We don’t know when they will. We know that it requires a three-year track record in house to consider that. I think that’s August 1.
Matthew S. Stadler
August of ?08.
Douglas Sipkin - Wachovia
That’s helpful. And then on the separate account business, I know that’s a bit of counter cyclical business, when REITs are out of favor typically that sees inflows. So, I was a little surprised it wasn’t a little bit better this quarter. I am just wondering, is there anything specific to that? Or it’s just one-offs here or there?
Matthew S. Stadler
I don’t think there is a major trend, yet. I will say that we have – and this is something we haven’t seen for some time – seen some existing clients, based on the decline in REIT prices and their asset allocation strategies, begin to increase their allocations. We’ve seen that from several European clients. We’ve seen it from one U.S. client and then several global clients.
Martin Cohen
The answer to the first question is $1.1 billion in large cap value.
Douglas Sipkin - Wachovia
Is that a combination of fund and separate account?
Martin Cohen
Yes.
The importance of that $1.1 billion is, I’d like to reiterate, we’ve mentioned this in the past, having critical mass now enables us to compete more effectively for large mandates. So we’ve reached a turning point here, which we are very, very, very optimistic about.
Douglas Sipkin - Wachovia
Okay, great. And then just an update. I know you don’t expect much out of the closed-end fund market in the near-term, but I get the sense that some of the discounts are starting to improve a little bit. Any color on that market? Are we still a long ways off before we could think about that? And I am just saying that given the recent acceleration in interest rate policy.
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