Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Craig Siegenthaler – Credit Suisse.
Craig Siegenthaler – Credit Suisse
My first question really deals with the high profile talent you hired this summer. You went through it briefly but in terms of timing, when can we think about them really generating business and have they been actually meeting with some of your institutional and private wealth clients?
Noam Gottesman
They’re already in charge of the portfolios. They’ve taken over so they’re now on day-to-day management. They’re preparing presentations and road show schedules on the new products that we’re launching and to meet with the existing clients of those funds plus new prospective ones. And so I would expect to see activity from the first quarter of next year in terms of in flows. Between now and then we’re focusing more in insuring that the portfolios that remain are in the best possible shape and are managed appropriately in this environment.
And then we will begin the marketing period. There has been a significant interest in meeting with them.
Craig Siegenthaler – Credit Suisse
And how many – when we think about strategies because there was the individual from Goldman, the two from Morgan Stanley, PIMCO and then two individuals from Merrill, how many different strategies does that really break out into?
Noam Gottesman
Well we had four strategies originally. We will add a macro strategy to that and we’ve been approached on a couple of bespoke managed accounts for various strategies. But I would expect to see one if not two additional ones relatively soon.
Craig Siegenthaler – Credit Suisse
My second question really is on distribution right now because if you break it up really into three buckets being institutional, high net worth and then really fund to fund, which channel have you been seeing the most pressure on as of the last – let’s say the last three or four months? And going forward do you expect that to change?
Noam Gottesman
In terms of, I mean, we track this pretty closely and we’ve seen really an almost an extraordinary stickiness among our private clients where the change on the year in terms of redemptions is only 2%. Conversely, the insurance sector which invested in fund to funds, banks which invested in fund to funds and the fund to fund period group itself, we’ve seen more material decreases with insurance roughly 6.5% reductions, fund to funds and bank around 18.3%. The private individual base continues to be extremely sticky and it’s more an out flow of fund to funds which I think as you know was more heavily concentrated in our emerging markets business generally.
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